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"t c` REQUEST FOR ACTION <br />,ier <br />TO ITEM NUMBER <br />Ma ox and Ci Council $ . 4 <br />AGENDA SECTION MEETING DATE PREPARED BY <br />General Business Ma 7, 2012 Tim Simon, Finance Director <br />ITEM DESCRIPTION REVIEWED By <br />Resolution Providing for the Redemption Of Certain Cal Portner, Ci Administrator <br />Outstanding Liquor Store Revenue Bonds, Series 2005C REVIEWED BY <br />ACTION REQUESTED <br />The Council is asked to adopt a resolution providing fox the redemption of certain outstanding liquor <br />store revenue bonds, series 2005C of the city. <br />BACKGROUND/DISCUSSION <br />In 2005, the City Council authorized the issuance of $1,200,000 Liquor Store Revenue Bonds, Series <br />2005C fox construction of Westbound Liquor Store. The bonds have a final maturity of February 1, 2015, <br />and the interest rate is 4.5 percent. Under the terms of the bond sale, notice must be given to the bond <br />holders at least fifteen days prior to the redemption in whole or in part on ox after July 1, 2012. Upon <br />Council approval, staff will provide written notice and payoff the bonds on July 1, 2012. <br />The redemption of the 2005C bonds has been anticipated as we review five-year forecasts on all of our <br />funds through the budget and capital improvement plan process. <br />FINANCIAL IMPACT <br />The amount needed on July 1, 2012, will be $570,000 plus accrued interest. This amount is budgeted in <br />the Liquor Enterprise Fund. The city will save $41,737 in interest expense over the next three years. <br />ATTACHMENTS <br />• Resolution providing for the redemption of certain outstanding liquor store revenue bonds, series <br />2005C of the city <br />Action Motion by Second by Vote <br />Follow Up <br />F~AIIE~EIr B~ <br />N:\Public Bodies\Ciry Council\Council RCA\Agenda Packet\05-07-2012\prepaymentofliquorstorebonds.docx `~ <br />