Laserfiche WebLink
Elk River .M <br /> Municipal Utilities UTILITIES COMMISSION MEETING <br /> TO: FROM: <br /> Elk River Municipal Utilities Commission Theresa Slominski, Finance and Office Manager <br /> John Dietz—Chair <br /> Al Nadeau—Vice Chair <br /> Daryl Thompson—Trustee <br /> MEETING DATE: AGENDA ITEM NUMBER: <br /> May 10, 2016 5.5 <br /> SUBJECT: <br /> Bond Sale Resolution <br /> BACKGROUND: As mentioned in my April staff update,we are moving forward with our buy-in to <br /> MMPA with an early payment amount by bonding this year for$10 million. We have been working with <br /> our financial consultants, Springsted,to bring the sale information forward this commission meeting. <br /> Upon their review,we are also proposing to refund debt issue 2007A bonds for early payoff in 2018 when <br /> we move to MMPA as our power provider. <br /> DISCUSSION: <br /> Springsted has provided information on the 2016A bonding for$10 million,and an analysis on the 2007A <br /> bond refunding of$1.46 million.Additionally, Springsted has provided information for the justification <br /> of the refunding with the adjusted timeline and projected savings of$56,000. The report is attached, <br /> providing this information.Terri Heaton from Springsted will be at our Commission meeting to help <br /> explain the refunding and answer any questions you may have. <br /> Given the City of Elk River is the qualified entity to issue bonds,the resolution must be approved by the <br /> City Council to be effective. We have the necessary resolutions for the Utility Commission and City <br /> Council to act upon in order to authorize the sale and refund of these bond issues. Successful action from <br /> the Utility at the May 10`h meeting would bring it before the City Council on May 16`h for action. The <br /> resolutions are attached for your review. <br /> The award of the bonds by the Utility Commission would come back and be on the June 14`h agenda. <br /> ACTION REQUESTED: <br /> Staff recommends that the Elk River Municipal Utilities authorize and request the City Council to sell the <br /> 2016A Electric Bonds and refund the 2007A Electric Bonds in June 2015,per the attached resolution. <br /> ATTACHMENTS: <br /> Recommendations related to Bonds 2016A Issuance,and 2016B Refunding <br /> Resolutions for Utility 2016A and 2016B <br /> Resolutions for City 2016A and 2106B <br /> ... <br /> P—OWERED 11 <br /> Page 1 of 1 NATURE <br /> Reliable Public <br /> L <br /> Power Provider P OWERED T O S ERV E <br /> 165 <br />