4.9. SR 05-20-2013 - Laserfiche WebLink

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Elk REQUEST FOR ACTION River TO ITEM NUMBER Mayor and City Council 4.9 AGENDA SECTION MEETING DATE PREPARED BY Consent May 20, 2013 Tim Simon, Finance Director ITEM DESCRIPTION REVIEWED By Resolution Providing for Redemption of 2005A Bonds Cal Portner, City Administrator REVIEWED BY ACTION REQUESTED Adopt by motion a resolution providing for the redemption of certain outstanding General Obligation Improvement Bonds, Series 2005A of the city. BACKGROUND/DISCUSSION On June 14, 2005, the City Council authorized the issuance of$1,070,000 General Obligation Improvement Bonds for the 2005 Street Rehabilitation Project. The bonds have a final maturity of February 1, 2016, and the true interest cost is 3.53 percent. Under the terms of the bond sale, notice must be given to the bond holders at least 15 days prior to the redemption in whole or in part. Upon Council approval, staff will provide written notice and prepay the bonds on July 1, 2013. The bonds have a call date of February, 1, 2012. With the approval of the new Pavement Management Program and franchise fee implementation,the bonds can be called in and prepaid by the current Debt Service Fund cash balance and the Street Improvement Reserve Fund. These bonds are General Obligation Improvement Bonds of the city and have had a tax levy and special assessment repayments from property owners that have paid previous principal and interest. FINANCIAL IMPACT The amount needed is $340,000 plus accrued interest. The funding will come from the 2005 Debt Service Fund which has a cash balance of$111,785 and the Street Improvement Reserve Fund. The city will save $18,772 in interest expense over the next three years. ATTACHMENTS ■ Resolution providing for the redemption of certain outstanding General Obligation Improvement Bonds, Series 2005A of the city P O W E R E D BY N:\Public Bodies\Agenda Packets\05-20-2013\X4.9 sr 2005A bonds.docx Na U R E