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<br />reI ~'\) <br />( )j <br />!l~ <br /> <br />ITEMS 6.4a. & 6.4b <br /> <br /> <br />MEMORANDUM <br /> <br />FROM: <br /> <br />MAYOR & CITY COUNCIL <br />LORI JOHNSON, FINANCE DIRECTORl?f~ <br /> <br />TO: <br /> <br />DATE: <br /> <br />NOVEMBER 7, 1994 <br /> <br />SUBJECT: RESOLUTION INITIATING THE <br />PROCESS FOR THE SALE OF THE <br />CITY'S $1,010,000 GENERAL <br />OBLIGATION WATER REVENUE <br />BOND, SERIES 1994D AND A <br />RESOLUTION INITIATING THE <br />PROCESS FOR THE SALE OF THE <br />CITY'S $1,550,000 GENERAL <br />OBLIGATION IMPROVEMENT BOND, <br />SERIES 1994E <br /> <br />e <br /> <br />Water Revenue Bond Series 1994D <br /> <br />The Elk River Municipal Utilities has requested that the City of Elk River <br />authorize on its behalf $1,010,000 in General Obligation water revenue <br />bonds. This amount was determined based on a construction bid of $864,300 <br />plus property acquisition and related engineering, legal, and bond issuance <br />costs. The Resolution is worded such that the amount of the bond will be <br />reduced if the City Council authorizes the transfer of Tax Increment <br />Financing District No.4 revenues to the water utility. The Statute allowing <br />the issuance of the water revenue bonds requires that water rates be set at <br />an amount adequate to cover the debt service of this bond issue. <br /> <br />In that regard, I requested that Bill Birrenkott provide the City with water <br />revenue forecasts and cash flow projections for this bond issue. Once that <br />information is available, the Council will be able to determine whether the <br />TIF proceeds are needed in order to finance the water tower or if the current <br />water revenues and connection charges are sufficient to support the entire <br />bond issue. <br /> <br />e <br /> <br />P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br />