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'ity of <br /> <br />Item #4.1. <br /> <br />iver <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Mayor & City Council <br /> <br />FROM: Lori Johnson, Finance Director <br /> <br />DATE: <br /> <br />November 9, 1998 <br /> <br />SUBJECT: <br /> <br />Resolutions Providing for the Sale of <br />the City's $1,375,000 GO Improvement <br />Bonds and $820,000 GO Water Revenue <br />Bonds <br /> <br />Attached are two resolutions which, when approved, authorize the city to sell <br />$1,375,000 of General Obligation Improvement Bonds and $820,000 of <br />General Obligation Water Revenue Bonds. The Improvement bonds will <br />finance various public improvements including Lake Orono sedimentation <br />removal, Guardian Angels/Orono Shores, Railroad Drive, Boston Street, <br />Business Center Drive, and 1998 overlay improvements. The Revenue issue <br />will finance the construction of a new well and related water treatment <br />facility. The Recommendations from Springsted regarding these issues are <br />also attached for your review. <br /> <br />The General Obligation Bonds will be prepaid primarily through special <br />assessment revenues. However, an annual levy is required for the first ten <br />years in order to fund the city's non-assessed portion of the sediment removal <br />project. The Water Revenue Bonds will of course be repaid through water <br />revenues as determined by the Municipal Utilities. <br /> <br />These bond issues will be non-bank qualified due the city's issuance of Care <br />Choice pooled bonds for Guardian Angels. Per the agreement between the <br />city and Guardian Angels, Guardian Angels will reimburse the city for any <br />additional interest cost. The amount to be reimbursed will be determined <br />after the bonds are sold on November 30. <br /> <br />Action Requested <br /> <br />The City Council is asked to approve the two attached Resolutions Providing <br />for the Sale of the City's $1,375,000 General Obligation Improvement Bonds, <br />Series 1998A and Providing for the Sale of the City's $820,000 General <br />Obligation Water Revenue Bonds, Series 1998B. <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 <br /> <br /> <br />