4.5. SR 11-04-2013 - Laserfiche WebLink

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/i Elk Request for Action Fiver To Item Number Mayor and City Council 4.5 Agenda Section Meeting Date Prepared by Consent November 4, 2013 Tim Simon, Finance Director Item Description Reviewed by Redemption of Outstanding General Obligation Cal Portner, City Administrator Sewer Revenue Refunding Bonds, Series 2005B Reviewed by Action Requested Motion to adopt resolution providing for the redemption of certain outstanding General Obligation Sewer Revenue Refunding Bonds, Series 2005B, of the city. Background/Discussion In 1996, the City Council authorized the issuance of$2,655,000 in General Obligation Sewer Revenue Bonds, Series 1996A, for construction at the wastewater treatment plant. Subsequently,the bonds were refunded on June 14, 2005, as Series 2005B. The refunded 2005B bonds have a final maturity of February 1, 2016, and the interest rate range is 3.75-4.00%. Under the terms of the bond sale, notice must be given to the bond holders at least 30 days prior to the redemption in whole or in part on or after February 1, 2014. Upon Council approval, staff will provide written notice and pay off the bonds on February 1,2014. The redemption of the 2005B bonds has been anticipated as we reviewed the forecast of the Wastewater Budget and Capital Improvement Plan on October 21. The Wastewater Enterprise Fund will have no outstanding debt prior to the bond issue next summer for the expansion project. Financial Impact The amount needed on February 1, 2014,will be $380,000 plus accrued interest. This amount is forecasted and included in the Wastewater Enterprise Fund. The city will save approximately$22,769 in interest expense over the next two years. Attachments ■ Resolution Providing For The Redemption Of Certain Outstanding General Obligation Sewer Revenue Refunding Bonds, Series 2005B Of The City PVaw//��EAEU 0 r m I WRE