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Elk REQUEST FOR ACTION <br /> River <br /> To Item Number <br /> Mayor and City Council 4.8 <br /> Agenda Section Meeting Date Prepared by <br /> Consent December 17,2012 Tim Simon,Finance Director <br /> Item Description Reviewed by <br /> Refunding the General Obligation Bonds, Series 2007B Cal Portner, City Administrator <br /> Reviewed by <br /> Action Requested <br /> Council is asked to adopt the ordinance authorizing the issuance of General Obligation Refunding Bonds <br /> by the Economic Development Authority (EDA). <br /> Background/Discussion <br /> On December 10,2012, the City Council reviewed the draft ordinance authorizing the issuance of <br /> General Obligation Refunding bonds by the EDA and the bond issuance process. There are no changes <br /> to the ordinance from that meeting. <br /> On December 10,2012, the EDA approved a resolution providing for the sale of General Obligation <br /> Refunding Bonds, Series 2013A, for an interest cost savings on the advance refunding of the General <br /> Obligation Bonds,Series 2007B. The original proceeds of which were used for the acquisition and <br /> betterment of an existing recreation facility (YMCA project). Per the lease agreement, the city is <br /> responsible for two-thirds of the debt service payments and the YMCA the other one-third. <br /> This ordinance is essentially the same ordinance adopted on the original issuance of the bonds,which <br /> delegates the pricing to the EDA. <br /> Financial Impact <br /> At current rates which are subject to change,refunding the bonds will yield at a minimum a net present <br /> value savings of over 8%. This should result in approximately$850,000 in savings over the next 20 years. <br /> Attachments <br /> • An ordinance authorizing the issuance of not to exceed$10,000,000 General Obligation <br /> Refunding Bonds by the Economic Development Authority for the City of Elk River,Minnesota; <br /> providing for the form and details thereof;and authorizing the Economic Development <br /> Authority for the City of Elk River,Minnesota, to pledge the full faith,credit and resources of the <br /> City of Elk River,Minnesota, for the security and payment of the bonds <br /> Action Motion by Second by Vote <br /> Follow Up <br /> N:\Public Bodies\City Council\Council RCA\Agenda Packet\12-17-2012\YMCArefunding staff report.doc <br />