7.5. SR 03-15-2010 - Laserfiche WebLink

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~:NH.VnKV:ttH:, fN: NNN, j+•WNNCCNNNS ~ ~ ~ ~ ~ ~~ ~'r } y~ mx~ - ~mxxw~ w.y~~ enxl~uvaw+mvmxxx~xxxxvnxwnxxxx~whxx++nxvmxx~x~uxxx~xxrx~xNx~xx~xuxxmxux~xx~mm~u~ux~x~vxm~wm~u~uuu~uMU~uuu~u~uuMUUUxuuuuuumuxw`x~xvnxxnxm~x~u~uw,x~wu~vw.y.~xvn~xwxmxxxx~xxxxx~xxxxvw mx~xmxm~m~xw.wmxxxxxx~xx~xmwnnxxxx~ixx~H~~wwwnvu.u~i~xv~ui»vrvn~xn~xu~uun~ z i E n„~„n.,.•~ Lpgyq~cay ~u~x~l\\\\M~1oF D ~ ils of ~r o~ec ~~bt l~~p~ 1~ $7,$00,000 ~-,~. Capital Improvement Plan Bonds, Series 2010A to be secured by the full faith and credit of the taxpayers of the City of Elk River the "Bonds"}. The City has previously approved a Capital Improvement Plan for financing purposes of the public safety building and the City Hall expansion, The 30 day reverse refere~~d~~m passed without any petition requesting any bonds be placed on the ballot for approval by the citizens. The City used this same process far financing of the library building. ~~rpa~~ To provide funds sufficient for an advance refunding of all of the EI)A's $8,000,000 Public Safety Building Lease Revenue Bonds, Series 2002A and $1,695,000 City Plall Expansion Revenue Bands, Series 20028 the "Prior Bonds"}, The Prior Bonds have approximately $5,840,000 and $1,270,000 outstanding respectively, The savings will occur over the next 13 years at approximately $20,000 to $25,000 per year, Current interest rates are approximately 4,75x/° and the new interest rates should be slightly under 3%, An advance refua~ding means the proceeds of the new Bonds will be escrowed in an amount sufficient to pay principal and interest on the Prior Bonds through the call date of 21112013, Bonds can only be advance refunded once during the life of the Bonds, The City's goal is to have the present value savings be at least 3% of the outstanding Prior Bonds, The City Council is being aslced to approve a "parameters" resolution. This resolution allows the Bonds to be sold competitively on any date set by staff, A pricing committee will be established in the resolution to approve the actual sale based upon the savings parameters in the resolution, This type of resolution is used for refundings to allow flexibility to meet the City's goals far the savings, The resolution will also authorize up to $8,000,000 in total bond proceeds ~u1l~o~i1: The Bonds are being issued pursuant to Minnesota Statues, Chapter 475, ~~~~di~t~ ~~~~~~ It is the intent of the City to utilize the same source of payment originally pledged to the Prior Bonds, an annual property tax levy and asub-lease to the Ellc River Municipal Utilities, to make all debt service payments. The approximately $70,000 of debt service reserve funds that were set aside out of the 2002B Bonds will be used as cash to reduce the size of the refunding Bonds, ;; _ :;: ;~ ~r'~~" ~~