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<br />City of Elk River, Minnesota <br />Pre-Sale Report <br />May 21, 2007 <br /> <br /> <br />O"~ <br />~er <br /> <br />I <br /> <br />Proposed Issue: <br /> <br />$3,135,000 General Obligation Improvement Bonds, Series lOD7e <br /> <br />Purpose: <br /> <br />To fund Irving and Deerfield street projects pursuant to Minnesota Statutes, <br />Section 429. <br /> <br />Schedule: <br /> <br />Council Authorizes Bond Sale: <br /> <br />May 21, 2007 <br /> <br />Conference with Rating Agency: <br /> <br />May 30, 2007 <br /> <br />Bond Sale: <br /> <br />June 4, 2007 <br /> <br />Estimated Closing Date: <br /> <br />Week of June 25,2007 <br /> <br />Term: <br /> <br />The total tenn of the Bonds will be 10 years of payments with the first interest <br />payment due on February \,2008, and principal due on February 1,2009, and <br />each year thereafter with the final principal payment on February 1,2018. <br /> <br />Call Feature: <br /> <br />Due to the potential for prepayments of assessments over time, a shorter call date <br />is recommended, with the Bonds maturing in 2014 and later can be called on <br />February 1,2013. <br /> <br />Rating, <br /> <br />The Bonds are expected to be rated by Moody's Investors Service at an "AI" <br />level. <br /> <br />Funding Sources: <br /> <br />Debt service will be paid with special assessments levied at a rate equal to 1.5% <br />over the bond rate or approximately 5.75% and a property tax levy of <br />approximately $130,000 per year. Most of the assessments are levied over 10 <br />years with a portion of the Irving project levied and payable over 5 years. <br />Capitalized interest will cover the first interest payment on February 1, 2008. <br />