5.5. SR 10-13-2003 - Laserfiche WebLink

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Proposed Issue: Purpose: Term: Call Feature: Rating: Funding Sources: Bauk Qualification: Discussion Issues: Schedule: City of Elk River, Minnesota Pre-Sale Report October 13, 2003 $1,795,000 General Obligation Improvement Bonds, Series 2003A To fund four infrastructure projects in the City including the Boston & Concord project, the 2003 Street Rehab project, the 2002 Zane Street Improvements, and Cascade Industrial Park. Attached is an exhibit which demonstrates the expected amount and term of the assessments associated with each project. The total term of the Bonds will be 10 years of payments with the first interest payment on August 1, 2004, and the final principal payment on February 1, 2014. The Bonds maturing in 2012 and later can be called on February 1,2011. The Bonds are expected to be rated by Moody's Investors Service at an "A2" level. Approximately $1,556,000 of the project costs financed by the bond issue is expected to be assessed to benefiting properties. The remaining amount of the Bonds will be paid with a tax levy beginning with taxes payable in 2004 of approximately $95,000. Additional levies of $72,000 per year in payable 2005 and 2006 will also be expected. Future reconstruction projects are expected to require debt levies for later years. The levy will be a debt levy outside of levy limits, under current law. The City does not expect to issue more than $10,000,000 in the calendar year 2003 and has not issued any conduit financing which would exceed the limit. Therefore the Bonds are expected to be bank qualified. The City expects to approve a resolution on November 10, 2003 to pre-pay two additional bond issues which have sufficient cash on hand to retire the debt. The issues are the G.O. Sewer Bonds, Series 1994B with an outstanding principal amount of $565,000 and the G.O. Tax Increment Bonds, Series 1994D, with an outstanding principal amount of $80,000. If prepayments of special assessments are received earlier than the call date, the City may need to levy additional funds to cover the differential between the assessments interest rate and the City's investment rate. Pre-Sale Review: Distribute Official Statement: Conference with Rating Agency: Bond Sale: Estimated Closing Date: October 13, 2003 Week of October 27, 2003 Week of November 3, 2003 November 10, 2003 Week of December 1, 2003 Attachmeuts: Sources and Uses of Funds Proposed Debt Service Schedule Resolution authorizing Ehlers to proceed with bond sale