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Home My WebLink About1998-12-16 PACKET 08.D.REQUEST OF CITY COUNCIL ACTIOfV COUNCIL AGENDA MEETING ITEM # DATE 12/16/98 , �, Pf2EPARED BY: Finance Liz Johnson ORIGINATING DEPARTMENT STAFF AUTHOR rt * # < �k * �k * # * * & * * # * # * 6 # * * + + k # * h rt t 4 * * h * k * * * + * rt �k k 4 * # * COUNCIL ACTION REQUEST: Adopt resolution providing for the sale of $2,595 General Obligation Improvement Refunding Bonds, Series 1999 A Adopt resolution providing for the sale of $1 General Obligation Improvement Bonds.. Series 1999 B STAFF RECOMMEiVDATION: Adopt resolutions as proposed. BUDGET IMPLICATION $ BUDGETED AMOUNT ADVISORY GOMMISSION ACTION ❑ PLANNING ❑ PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAN SERVICES/RIGHTS ❑ ECONOMIC DEV. AUTHORITY ❑ SUPPORTlNG DdCUnJlENTS r_ $ AGTUALAMOUNT FUNDING SOURCE REVIEWED ❑ ❑ ❑ ❑ ❑ ❑ ❑ APPROVED ❑ ❑ ❑ ❑ ❑ ❑ ❑ DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ � MEMO/LETTER: � RESOLUTIOIV: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDRTION: ❑ LEGA� RECOMMENDATION: I� OTHER Pre sale repert ADMINfSTRA CdMMENTS e � - _. _ , , � � � '' C��' 1 ��_ 1 ( I -l--�J ,� �, ) City Administrator Dat� .<..<<...<.<>,��<�...�,<�#..��.�,..��<�x<,�>,>��. Memorandum l'o: Honorable Mayor and City Council Ryan Schroeder, City Administrator From: Elizabeth Johnson, Finance Director�"� Date: 12/11 /98 Re: Bond Issuance Inuoduction Council is asked to approve a resolution providing for the sale of $2,595,000 :ral Obligation Improvement Refunding Bonds, Series 1999A and for $1,195,000 :ral �bligation Improvement Bonds, Series 1999B. The Series 1999B bonds will provide a reimbursement to The City for Che construction costs of three subdivisions that were develo�ed late in 1998 and were not bonded for in 1998. �'hese subdivisions aze Sandy Hilis 8, Hidden Valley 7`" and Pine Forest 4�'. As Council will recall, the City assessed both Sandy Hills 8' and Pine Porest 4th during the fall assessment process. The bonded amounts are the net amounts, meaning, after prepaid assessments. Hidden Valley 7 has not yet been bonded for and will be assessed in fall 1999. The Series A bonds will provide for an advance refunding ofthe :996 $4,1�O,OOC General Obligation Bonds. An advance refunding refers to providing funds to refund the outs2anding bonds before the call date. The call date on the 1996 bonds is 2003. This is done if market interest rates are favorable. An advance refunding can only be done once. Staffhas worked with Ehlers and Associates, who have projec±ed a minimum savings of 3%, given the current market conditions. They have recommended that the City offer Che issuance for the sale of the refunding bonds only if interest rates improve very slightly, which would increase the savings to 4%, or to approximately $90,000. The present model provides for an interest rate of432%. A 20 basis point drop to 4.07% would increase the savings substantially. Providing for the resolution at this time allows the City the flexibility to issue the refirnding bonds if rates improve, or to pull Yhe refunding issue from the bond sale if rates do not improve. The City will then have the December 11, 1998 opportunity to provide for the refunding at some time in the future, i£ it is economically viable to do so. Requested Action Adopt resolutions providing for the sale of bonds. $�' �' �" Council Member Resolution No. introduced the following resolution and moved its adoption: Resolurion Providing for the Sale of $1,195,000 General Obligation Improvement Bonds, Series 1999B following City Council Members voted in favor thereof: p. WHEREAS, the City Council of the Ciry of Cottage Grove, Minnesota, has hererofore determined that it is necessary and expedient to issue the City's $1,145,000 General Obligation Improvement Bonds, Series 1999B (the "1999B Bonds"), to finance the construction of various public improvements in the City; and g. WHEREAS,theCityhasretainedEhlersandAssociates,Inc.,inMinneapolis,Minnesota("Ehlers"), as its independent financial advisor for the 1999B Bonds and is therefore authorized to solicit proposals in accordance with Minnesota Statutes, Section 4"15.60, Subdivision 2(9); NO�V, THEREFORE, BE IT RESOLVED by the City Council of City of Cottage Grove, Minnesota, as follows: l. Authorization' Findin�s. The City Council hereby authorizes Ehiers to solicit proposals for the sale of the 19998 Bonds. 2, MeeCin�' Propozal Openina. The City Council shall meet at the time and place to be specified in the Terms of Proposal for the purpose of considering sealed proposals for, and awarding the sale of the 1999B Bonds. The City Clerk, or designee, shall open proposals at the t�me and place specified in such Terms of Proposal. 3. Bond Sale Renott The terms and conditions of the 1999B Bonds and ihe sale thereof are fully set foRh in the "Bond Sale Report" attached herero and hereby approved and made a part hereof. 4. Official Statement. In connection with said sale, the officers or employees of the City are hereby authorized to cooperate with Ehlers and participa[e in the preparation of an official statement for the ] 999B Bonds and to execute and deliver it on behalf of the City npon its completion. The mo[ion for the ldopti � n and,�afte�fnll discuss�ion� thereof � d upon a�vot bbe n�g ta eo ther onmt�he and the fotlowing voted agninst the same: Whereupon said resolution was declaced duly passed and adopted. Dated this _ ��y af 1998. City Clerk � (SEAL} Resolution No. Council Member introduced the following resolution and moved its adoption: Resolution Providing for the Sale oF $300,000 Generai Obligation Taxable Tax Increment Bonds, Series 1999D A. WHEREAS, the City Council of the City of Cottage Grove, Minnesota, has heretofore determined that it is necessary and expedient to issue the City's $300,000 General Obligation Taxable Tax Increment Bonds, Series 1999D (the "1999D Bonds"), to finance the purchase of ????????? in the City; and B. WHEREAS,theCityhasretainedEhlersandAssociates,Inc.,inMinneapolis,Minnesota('Bhlers"), as its independent financial advisor for the 1999D Bonds and is therefore authorized to solicit proposals in accordance with Minnesota Stamtes, Section 475.60, Subdivision 2(9); NOW, THEREFORE, BE IT RESOLVED by the City Council of City of Cottage Grove, Minnesota, as follows: 1. Authorization: Findin�s. The City Councit hereby authorizes Ehlers to solicit proposals for the sale of the 1999D Bonds. 2. MeetinQ; Proposal Openine. The City Council shall meet at the time and place to be specified in the Terms of Proposal for the purpose of considering sealed proposals for, and awarding the sale of the 1999D Bonds. The City Clerk, or designee, shall open proposals at the time and place specified in such Terms of Proposal. 3. Bond Sale Report. The terms and conditions of the 1999D Bonds and the sale thereof are fully set forth in the "Bond Sale Report" attached hereto and hereby approved and made a part hereof. 4. Officfal Statement. In connection with said sale, the officers or employees of the Ciry are hereby authorized to cooperate with Ehlers and participate in the preparation of an official statement for the 1999D Bonds and to execute and deliver it on behalf of the City upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by City Council VIember and, after full discussion thereof and upon a vote being taken thereon,the following Ci[y Council Members voted in favor thereof: and the following voted against the same: Whereupon said resolution was d�clared duly passed and ado�ted. Dated this day of , 1998. (SEAL) Ciry Clerk