5.5. SR 07-15-1996 - Laserfiche WebLink

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5.5. ity of iver MEMORANDUM TO: FROM: Mayor & City Council Lori Johnson, ~~ Finance Director/Asst. Cry Admn. DATE: July 15, 1996 SUBJECT: Resolution Providing for the Issuance and Sale of the City's $2,100,000 G.O. Ice Arena Bond, Series 1996C Attached is a resolution which, when approved by the City Council, would award the sale of the city's $2,100,000 General Obligation Ice Arena Bond, Series 1996C to First National Bank of Elk River, The Bank of Elk River, and the State Bank of Rogers. Each of these banks will be taking a portion of the issue. This is a 17 year bond with a final maturity in the year 2013 at an interest rate of 5.7 percent. The structure of this bond is based on the results of the financial feasibility study prepared by Marquette Partners and information provided by the Elk River Youth Hockey Association. Analysis of the estimated revenues and expenditures indicate that the ice arena should generate revenues slightly in excess of the amount required annually for debt service. As noted on Page 2 of the resolution, the bonds are secured by a pledge of and a first lien on the gross revenues of the ice arena. Simply put, this means that the revenues must first be used to pay for debt. Any remaining funds will be used for operation of the facility. Also, since this is a general obligation bond, the city will be required to levy ad valorem taxes if there is a deficiency of funds in the debt service account. Action Requested The City Council is asked to act on the attached resolution providing for the issuance and sale of the city's $2,100,000 General Obligation Ice Arena Bond, Series 1996C. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425