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ity of <br /> <br />Item #5.2. & 5.3. <br /> <br />River <br /> <br />TO: <br /> <br />MEMORANDUM <br /> <br />Mayor and City Council <br /> <br />FROM: Lori Johnson, Finance Director <br /> <br />DATE: <br /> <br />November 30, 1998 <br /> <br />SUBJECT: Resolutions Providing for the Issuance <br /> and Sale of the City $1,375,000 General <br /> Obligation Improvement Bonds Series <br /> 1998A and $820,000 General Obligation <br /> Water Revenue Bonds, Series 1998B <br /> <br />On Monday, the Council will be asked to award the 1998 Improvement and <br />the 1998 Water Revenue bonds. Dave MacGillivray of Springsted will be <br />present Monday evening to provide the results of this sale. The General <br />Obligation Improvement Bonds fund the 1998 Overlay, Railroad Drive, <br />Boston, Business Center Drive, Lake Orono, and Guardian Angels projects. <br />The Water Revenue Bonds fund well No. 6 and the related treatment <br />facilities. <br /> <br />Attached is a copy of the official statement used in this bond transaction. <br />The official statement provides economic, demographic, financial, and other <br />information regarding the city. Also attached is the credit rating review from <br />Moody's. The city has maintained its Baal rating with a positive outlook. <br />Moody's looked very favorably upon the improved financial condition of the <br />city and the growth in the General Fund balance. However, the large <br />amount of debt (direct and overlapping) was certainly a concern to Moody's. <br />A large part of this debt is the school's debt over which the city has no <br />control. The city's continuing needed to finance future growth through debt <br />issuance was also considered when determining the rating. <br /> <br />Action Requested <br /> <br />Following a presentation by Dave MacGillivray on the results of the <br />proposals received for the two bond issues, the City Council is asked to <br />approve two resolutions; a resolution providing for the issuance and sale of <br />the city's $1,375,000 General Obligation Improvement Bonds Series 1998A, <br />and a second resolution providing for the issuance and sale of the city's <br />$820,000 General Obligation Water Revenue Bonds Series 1998B. <br /> <br />X\elkriverXsys\shrdoc\councilXbonds.doc <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 />