6.2. SR 10-01-2007 - Laserfiche WebLink

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J Elk REQUEST FOR ACTION River To Item Number Ci Council 6.2. Agenda Section Meeting Date Prepared by Administration October 1, 2007 Tim Simon, Finance Director Item Description Reviewed by YMCA Bond Pxe-sale Review Lori ohnson, Ci Administrator Reviewed by Action Requested The Ciry Council is asked to review the attached pre-sale report fox the upcoming YMCA bond issue. Background/Discussion Bonds axe being issued to finance the 55,000 s.f. recreational facility to be leased to the YMCA. The Economic Development Authority (EDA) will be issuing the bonds due to the legal authority necessary to utilize bond proceeds fox a recreational facility leased to anon-profit. If the EDA issues over $10,000,000 in a calendar year, the bonds will not be bank qualified which means they carry a higher interest rate and will be taxable bonds. The spread in today's market between bank qualified and non- bank qualified bonds is between .2% and .25%. As a result, the EDA will be issuing $10,000,000 in calendar year 2007 and $2,000,000 in calendar year 2008, which will result in an estimated debt service savings of approximately $280,000 in present value dollars. The EDA's $10,000,000 is viewed separate from the City's amounts previously issued in 2007, but the EDA's amount counts towards the City's $10,000,000 thus the reason the City issued non-bank qualified bonds earlier this year. Nex_ tSteos October 8, 2007 -EDA to review the pre-sale report October 15, 2007 -Public Hearing and the City Council and EDA will issue the bonds Financial Impact $10,000,000 will be issued in 2007 and $2,000,000 will be issued early in 2008 fox a total bond issue of $12,OOQ000. Attachments • Pre-sale report Action Morton by Second by Vote Follow Up C:\llocuments and Settin~,re\jmiller\Local Settings\Temponry Internet Files\OLK3E\YWfCAbondpxesale.doc