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~]` REQUEST FOR ACTION <br />~.,,: <br />.i.:ver <br />TO ITEM NUMBER <br />Ma or and Ci Council 4.1. <br />AGENDA SECTION MEETING DATE PREPARED BY <br />Consent November 14, 2011 Tim Simon, Finance Director <br />ITEM DESCRIPTION REVIEWED By <br />Ice Arena Debt Payoff Cal Portner, Ci Administrator <br />A. Resolution Providing for the Prepayment and REVIEWED BY <br />Redemption of Certain Outstanding General Obligation <br />Bonds <br />B. Resolution Authorizing a Transfer from the GRE <br />Reserve Fund to the 1996c Ice Arena Bonds Debt <br />Service Fund <br />ACTION REQUESTED <br />City Council is asked to adopt the following resolutions: <br />A. Providing for the prepayment and redemption of certain outstanding General Obligation <br />Bonds of the city, and <br />B. Authorizing a transfer from the GRE Reserve Fund to the 1996C Ice Arena Bonds Debt <br />Service Fund. <br />BACKGROUND/DISCUSSION <br />In 1996, the City Council authorized the issuance of $2,100,000 General Obligation Ice Arena Bonds for <br />construction of the Olympic rink. The bonds have a final maturity of December 1, 2013, and the interest <br />rate is 5.7 percent. On November 7, the Council discussed prepaying the 1996C General Obligation Ice <br />Arena Bonds and directed staff to proceed with a resolution authorizing the calling of those bonds. <br />Under the terms of the bond sale, notice must be given to the bond holders at least 15 days prior to the <br />redemption in whole or in part. Upon Council approval, staff will provide written notice and prepay the <br />bonds on December 1, 2011, which is the next scheduled semi-annual payment date. <br />FINANCIAL IMPACT <br />The amount needed, in addition to the scheduled principal and interest on December 1, 2011, will be <br />$370,000 plus any accrued interest if we go beyond December 1, 2011. The funding will come from the <br />GRE Reserve Fund (peaking plant payment). The city will save $31,920 in interest expense over the next <br />two years. <br />ATTACHMENTS <br />^ Resolution providing for the prepayment and redemption of certain outstanding General <br />Obligation Bonds of the City of Elk River <br />^ Resolution authorizing the transfer from the GRE Reserve Fund to the 1996C Ice Arena <br />Bonds Debt Service Fund <br />Action Motion by Second by Vote <br />P I4 • f R f® 8~ <br />N:\Public Bodies\City Council\Counal RCA\Agenda Packet\11-142011\prepaymentoficearenabonds[1].docx <br />