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08-29-2018 ERMU SPECIAL MIN
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08-29-2018 ERMU SPECIAL MIN
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City Government
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ERMUMIN
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8/29/2018
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$10,000,000 bonding. She also went over ERMU's credit strengths that Moody's used to <br /> determine the rating which included: <br /> • Monopoly service area with expanding customer base <br /> • Electric commission has sole rate setting authority <br /> • History of operating surpluses with strong financial and coverage ratios <br /> • Transition to membership in Minnesota Municipal Power Agency (MMPA) <br /> will lead to the elimination of coal exposure <br /> Mr. Adams provided some comparisons between our rating and other power agencies. <br /> Based on the bids received,the recommendation was to award the issuance and sale of the <br /> $10,000,000 Electric Revenue Bonds, Series 2018A to the low bidder, Robert W. Baird & <br /> Company, Incorporated, per Resolution No. 10-18. <br /> Moved by Commissioner Stewart and seconded by Commissioner Bell to adopt Resolution <br /> No. 18-10 awarding the issuance and sale of$10,000,000 Electric Revenue Bonds,Series <br /> 2018A,per the attached resolution.Motion carried 4-0. <br /> Chair Dietz had a question on our final estimated amount for our buy-in to MMPA and$1.7 million <br /> coming out of reserves versus$2.1 million. Staff explained that based on the approximate$400,000 <br /> savings realized on the bonding,we would be able to use that savings towards the buy-in,resulting <br /> in that much less coming out of reserves. <br /> 3.0 ADJOURNMENT <br /> There being no further business,Chair Dietz adjourned the special meeting of the Elk River <br /> Municipal Utilities Commission at 3:08 p.m. <br /> Minutes prepared by Michelle Canterbury. <br /> AIM <br /> Jo I I . I'etz,E'r'G • mission Chair <br /> ________/.1L <br /> Tina Allard,City C - k <br /> Page 2 <br /> Special Meeting of the Elk River Municipal Utilities Commission <br /> August 29,2018 <br />
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