5.9. SR 09-13-1999 - Laserfiche WebLink

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RECOMMENDA TJONS . Re: Recommendations for the Issuance of $575,000 General Obligation Improvement Refunding Bonds, Series 1999B These recommendations outline certain terms of the City's upcoming bond issue, which represents the crossover advance refunding of the City's $3,495,000 General Obligation Improvement Bonds, Series 1994A (the "Series 1994A Bonds"), dated June 1, 1994. The refunding is being done to utilize $1,150,000 of accumulated prepayments of assessments currently held in the debt service fund for the Series 1994A Bonds. As a result of the refunding, the City will be able to: (1) greatly reduce the currently outstanding principal and interest carried on it's books for the Series 1994A Bonds (after the February 1, 2001 call date of the Series 1994A Bonds); (2) limit the yield on the investment of the accumulated prepayments to the yield on this issue, thus reducing the City's current arbitrage rebate liability for the Series 1994A Bonds; (3) refine the remaining debt service payments to match the balance of future special assessment collections; and (4) generate an estimated reduction in net future interest costs. We recommend the following for the Bonds: 1. Action Requested . To establish the date and time of receiving bids and establish the terms and conditions of the offering. Monday, October 18, 1999 at 12:00 Noon, with award by the City Council at 6:00 PM that evening. 3. Authority and Purpose for the Bond Issue The Bonds are being issued pursuant to Minnesota Statutes, Chapters 475 and 429. Sale Date and Time 2. 4. Principal Amount of Offering $575,000. Included in the attached Terms of Proposal is a provision that permits the City to increase or reduce the principal in any of the maturities in a total amount not to exceed $15,000. This will allow for any necessary adjustments to fund the escrow account based on final interest rates and issuance costs. 5. Repayment Term Interest payments on the Bonds are due February 1 and August 1, commencing August 1, 2000. Principal on the Bonds will be due annually February 1, 2002 through 2011. 6. Source of Payments The escrow account, established with the proceeds of the issue and the accumulated prepayments currently on deposit in the debt service fund for the Series 1994A Bonds, will pay the debt service on the Bonds through February 1, 2001. Thereafter the Bonds will be paid from special assessments originally pledged to the Series 1994A Bonds. .