Laserfiche WebLink
City of Elk River, Minnesota <br />May 8, 1996 <br /> <br />DISCUSSION <br /> <br />General Obligation Sewer Revenue Bonds, Series 1996A <br /> <br />The proceeds of the Series 1996A Bonds, along with a $1,000,000 cash contribution from the <br />City's Sewer Utility Fund, will be used to finance construction of a wastewater treatment plant. <br />Construction is expected to begin in spring 1996 and be completed by fall 1997. The principal <br />amount of $2,655,000 includes: <br /> <br />Construction Costs <br />Engineering <br />Contingency <br /> <br />$ 3,293,000 <br /> 197,000 <br /> 100,000 <br /> <br />Subtotal <br />Less: City Cash Contribution <br />Plus: Costs of Issuance <br /> Allowance for Discount Bidding <br />Less: Investment Earnings <br /> <br />$ 3,590,000 <br /> (1 ,ooo,ooo) <br /> 27,434 <br /> 39,825 <br /> (2.259) <br /> <br />Total Series 1996A Bond Issue <br /> <br />$ 2.655.O00 <br /> <br />The first interest payment is due February 1, 1997. Principal is due each February 1, 1997 <br />through 2016 as shown on page 5 of these recommendations. The City will repay the Series <br />1996A Bonds from net revenues of the City's Sewer Utility. <br /> <br />General Obligation Improvement Bonds, Series 1996B <br /> <br />The proceeds of the Series 1996B Bonds will be used to finance the Hillside Crossing II Project, <br />including street and utility improvements within the City. The principal amount of $500,000 <br />includes: <br /> <br />Project Costs <br />Less: Prepayments of Special Assessments* <br /> <br />$ 596,000 <br /> (150,000) <br /> <br />Subtotal $ 446,000 <br />Plus: Capitalized Interest 39,500 <br /> Costs of Issuance 12,285 <br /> Allowance for Discount Bidding 6,000 <br />Less: Investment Earnings (3,785) <br /> <br />Total Series 1996B Bond Issue <br /> <br />$ 5oo.oo0 <br /> <br />* Represents Developer's prepayment for one parcel <br /> <br />Interest payments due through February 1, 1998 will be made from capitalized interest included <br />in the Series 1996B Bonds. Principal is due each February 1, 1999 through 2004 as shown on <br />page 6 of these recommendations. Assuming special assessments are collected as scheduled, <br />the Series 1996B Bonds will be repaid solely from special assessments and the City will not <br />need to make a tax levy for the repayment of the Series 1996B Bonds. <br /> <br />The projection of special assessment income is shown on page 7 of these recommendations. <br />Special assessments, totaling $465,000 of principal, are expected to filed on or before June 1, <br />1996. Assessments will be filed over a term of six years with equal annual payments of <br /> <br />Page 3 <br /> <br /> <br />