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REQUEST FOR ACTION <br />To Item Number <br />Ci Council 3.6. <br />Agenda Section Meeting Date Prepared by <br />Consent Au ust 18, 2008 Tim Simon, Finance Director <br />Item Description Reviewed by <br />Resolution Authorizing The Call Of The Outstanding General Lori ohnson, Ci Administrator <br />Obligation Improvement Bonds, Series 1998A. Reviewed by <br />Action Requested <br />The approval of Resolution Authorizing The Call Of The Outstanding General Obligation Improvement <br />Bonds, Series 1998A. <br />Background/Discussion <br />After every tax settlement, the Finance Department reviews the various debt service funds and <br />outstanding bond issues to determine if sufficient cash exists to pay-off any outstanding bonds assuming <br />they have reached their callable date. <br />On November 30, 1998, the City issued $1,375,000 in General Obligation Improvement Bonds to finance <br />the. following public improvement projects: Guardian Angels/Lake Orono improvements, Boston Street <br />(street/utilities), Railroad Drive (utility improvements), Business Center Drive (street/utilities), and the <br />1998 overlay project. These projects were assessed the costs associated in order to pay the bonds. The <br />bonds reach final maturity on 02/01 /2009. Sufficient funds exist in the debt service account of the <br />1998A bonds to call the remaining outstanding principal plus accrued interest to October 1, 2008. <br />Financial Impact <br />Prepaying the bonds would result in a savings of approximately $1,612.501ess a small amount of accrued <br />interest. The amount to be paid on October 1, 2008 is $75,000 outstanding principal plus accrued interest. <br />Attachments <br />Resolution Authorizing The Call Of The Outstanding General Obligation Improvement Bonds, <br />Series 1998A. <br />ACtlon Motion by Second by Vote <br />Follow Up <br />C:\Documents and Settings\jmiller\Local Settings\Temporary Internet Files\OLK3E\calling1998Abonds.doc <br />