4.2. SR 11-09-1998 - Laserfiche WebLink

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ity of MEMORANDUM Item 4.2. TO: FROM: DATE: SUBJECT: Mayor & City Council Lori Johnson, Finance Director November 9, 1998 Resolution Awarding the Sale of the City's $113,550 General Obligation Equipment Certificate of 1998, Fixing Its Form and Specifications, Directing Its Execution and Delivery, and Providing for Its Payment The 1998 budget included $120,050 in equipment certificate capital outlay expenditures. The budget included $75,800 for police equipment, $12,600 for emergency preparedness equipment, and $31,650 for street equipment. Based on the actual expenditures the police department was approximately $6,000 under budget; therefore, the equipment certificates are being issued at an amount lower than originally projected. The Bank of Elk River will be purchasing this equipment certificate with a term of five years and a non bank qualified interest rate of 5.56 percent. The equivalent bank qualified rate is 4.5 percent. Earlier this year the city entered into an agreement with Guardian Angels whereby Guardian Angels will reimburse the city for any additional costs related to the issuance of its Care Choice pooled bonds. The additional interest cost on this issue is $2,322.21 to which a present value calculation will be applied so that Guardian Angels can reimburse the city prior to the end of the year for the additional cost. Action Requested The City Council is asked to approve the attached Resolution Awarding the Sale of the City's $113,550 General Obligation Equipment Certificate of 1998, Fixing Its Form and Specifications, Directing Its Execution and Delivery, and Providing for Its Payment. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425