Laserfiche WebLink
REQUEST FOR ACTION <br />TO ITEM NUMBER <br />Ma or and Ci Council 8.5 <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 General Obligation Tax Increment Bonds, Series REVIEWED BY <br />2000A <br />ACTION REQUESTED <br />The Council is asked to adopt a resolution providing for the redemption of certain outstanding general <br />obligation tax increment bonds Series 2000A of the city. <br />BACKGROUND/DISCUSSION <br />In 2000, the City Council authorized the issuance of $800,000 General Obligation Tax Increment Bonds, <br />Series 2000A for financing a portion of the costs of the East Elk River Improvement Project in tax <br />increment district (TIF) 19. The bonds have a final maturity of February 1, 2015, and the interest rate <br />range is 4.45-5.30 percent. Under the terms of the bond sale, notice must be given to the bond holders at <br />least thirty days prior to the redemption in whole or in part on or after February 1, 2007. Upon Council <br />approval, staff will provide written notice and payoff the bonds on June 7, 2012. <br />The redemption of the 2000A bonds has been anticipated as a debt service reserve was established and <br />now sufficient funds exist to call in the bonds. <br />FINANCIAL IMPACT <br />The amount needed on June 7, 2012 will be $235,000 plus accrued interest. The funding comes from the <br />TIF 19 Fund. The city will save approximately $20,790 in interest expense over the next three years. <br />ATTACHMENTS <br />Resolution providing for the redemption of certain outstanding general obligation tax increment <br />bonds Series 2000A of the city <br />Action Motion by Second by Vote <br />Follow Up <br />P9i~E13E8 ~T <br />C:\Users\jmiller\AppData\Local\Microsoft\Windows\Temporary Internet '" <br />Files\Content.IES\RFSSZZ3F\prepaymentofTIFl9bonds.docx <br />