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<br /> <br />City of Elk River <br />REQUEST FOR COUNCIL ACTION <br />Agenda Section Meeting Date <br />Administration Ma 1, 2006 <br />Item Description <br />Resolution Awarding the Sale of the City's $437,000 General <br />Obligation Equipment Certificate 2006B; Fixing its Form and <br />Specifications; Directing its Execution and Delivery; and <br />Providin for its Pa ment <br /> <br />Item Number <br />7.2. <br /> <br />Prepared by <br />Lori ohnson, Ci Administrator <br />Reviewed by <br /> <br />Introduction <br />The 2006 budget includes expenditures of $437,000 for street and park equipment to be financed <br />through equipment certificates. The tax levy for taxes payable 2006 includes a levy of $120,000 <br />for the first year's principal and interest on the equipment certificate. <br /> <br />Discussion <br />The Bank of Elk River is purchasing the certificate for a five-year term at an interest rate of 3.8 <br />percent per annum. The purchases authorized with equipment certificate proceeds include three <br />trucks and a mower. <br /> <br />Financiallmoact <br />Issuance of the certificate requires annual tax levies in an amount sufficient to pay the principal <br />and interest on the certificate. <br /> <br />Attachments <br />· Resolution awarding the sale of the city's $437,000 general obligation equipment <br />certificate 2006B; fixing its form and specifications; directing its execution and delivery; <br />and providing for its payment. <br /> <br />Action Reauested <br />The City Council is asked to approve the resolution awarding the sale of the city's $437,000 <br />general obligation equipment certificate 2006B; fixing its form and specifications; directing its <br />execution and delivery; and providing for its payment. <br /> <br />Council Action <br /> <br />Motion by _ <br /> <br />Second by _ <br /> <br />Vote <br /> <br />Follow Up <br /> <br />S: \CounciJ\Lori\2006 \BondSale OSOl06.doc <br />