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Elk River Municipal Utilities Commission Meeting Minutes <br />April 13, 2021 <br />Page 4 <br /> <br />favorable results for the bond sale. Ms. Heaton complimented ERMU staff and shared how <br />impressive they were on the rating call. <br /> <br />Moved by Commissioner Stewart and seconded by Commissioner Nadeau to adopt the bid <br />tabulation and Resolution Awarding the Issuance and Sale of $11,810,000 Electric Revenue <br />Bonds, Series 2021B, to Hilltop Securities, Inc. Motion carried 5-0. <br /> <br />5.3 Bond Sale Resolution <br /> <br />To finance the expansion of the Field Services Facility, staff has been working with Baker Tilly <br />Municipal Advisors, LLC to bring sale information for the $1,750,000, General Obligation Water <br />Utility Revenue Bonds, Series 2021C to the Commission. As the City of Elk River is the qualified <br />entity to issue bonds, the resolution must be approved by both the Utilities Commission and <br />the City Council for the bond sale to proceed. Consideration and award of the bonds will occur <br />at the May 11, 2021 commission meeting. <br /> <br />Moved by Commissioner Bell and seconded by Commissioner Westgaard to adopt <br />Resolution No. 21-9 providing for the competitive negotiated sale of $1,750,00 General <br />Obligation Water Utility Revenue Bonds, Series 2021C, and request that the City Council <br />approve the issuance of the bonds and delegate to the Commission the authority to award <br />the 2021C Water Bonds, per the attached resolution. Motion carried 5-0. <br /> <br />4.1 2020 Financial Audit <br /> <br />Mr. Berg was available via teleconference to present the ERMU Financial Audit for the <br />Year Ended December 31,2020 and Management Communication. He stated that the <br />auditors issued a clean opinion on the financials and that there were no findings to report. <br />In addition, they also issued a clean report on Minnesota legal compliance. Mr. Berg <br />walked through the 2020 Financial Statement Audit Presentation. <br /> <br />Chair Dietz had several clarification questions. Mr. Berg and staff responded. <br /> <br />There were questions about the rate of interest ERMU was receiving on its investments <br />and a note from the audit that recommended methods for maximizing interest and <br />earnings. Commissioner Westgaard shared that the Financial Reserves & Investment <br />Committee had discussed this and had made the recommendation to keep higher than <br />normal cash reserves with large projects on the horizon. Mr. Berg encouraged the <br />Commission to be aware of upcoming cashflow needs and shared that there are a limited <br />number of liquid investment opportunities currently. <br /> <br />Chair Dietz had questions about any opportunities ERMU might have to refinance the <br />bond it has for the membership buy-in to Minnesota Municipal Power Agency. Ms. <br />Slominski responded that to be able to refinance the bonds there would need to be a <br />change to legislation. There was discussion. <br />47