6.1. SR 05-02-2005 - Laserfiche WebLink

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City of Elk River, Minnesota Pre-Sale Report May 2, 2005 Proposed Issue: $1,085,000 General Obligation Improvement Bonds, Series 2005A Purpose: To fund street reconstruction projects in the City including replacement of the water lines, water mains, and storm water infrastructure under and abutting the streets to be rehabilitated. Attached is an exhibit which demonstrates the expected amount and term of the assessments associated with each project. Term: The total term of the Bonds will be 10 years of payments with the first interest payment on February 1,2006, and the final principal payment on February 1,2016. Call Feature: The Bonds maturing in 2013 and later can be called on February 1,2012. Rating: The Bonds are expected to be rated by Moody's Investors Service at an "A2" level. Funding Sources: Approximately $456,000 of the project costs financed by the bond issue is expected to be assessed to benefiting properties. Staff estimates that 20% (or $91,200) will be prepaid. The remaining amount of the Bonds will be paid with a tax levy beginning with taxes payable in 2006 of approximately $83,600. Additional levies ranging from $83,000 to $98,000 per year in payable 2008 through 2016 will also be expected. Future reconstruction projects are expected to require debt levies for later years. Bank Qualification: The City does not expect to issue more than $10,000,000 in the calendar year 2005 and has not issued any conduit financing which would exceed the limit. Therefore the Bonds are expected to be bank qualified. Discussion Issues: If prepayments of special assessments are received earlier than the call date, the City may need to levy additional funds to cover the differential between the assessments interest rate and the City's investment rate. Schedule: Conference with Rating Agency: May 2, 2005 Week of May 2, 2005 Week of May 9, 2005 May 16,2005 June 14,2005 Pre-Sale Review: Distribute Official Statement: Bond Sale: Estimated Closing Date: Attachments: Sources and Uses of Funds Proposed Debt Service Schedule Resolution authorizing Ehlers to proceed with bond sale Ehlers Contacts: Financial Advisors: Bond Sale Coordinator: Mark Ruff (651) 697-8505 Bruce Dejong (651) 697-8548 Diana Lockard (651) 697-8534 Debbie Holmes (651) 697-8536 Connie Kuck (651) 697-8527 Bond Analysts: The Official Statement for this financing will be mailed to the Council Members at their home address for review prior to the sale date.