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Item # 3.7. <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Mayor and City Council <br /> <br />FROM: <br /> <br />Lori Johnson, Finance Director <br /> <br />DATE: <br /> <br />June 10, 2002 <br /> <br />SUBJECT: <br /> <br />Consider Resolution Awarding Sale of the City's $500,000 <br />General Obligation Equipment Certificate of 2002; Fixing its <br />Form and Specifications; Directing its Execution and Delivery; <br />and Providing for its Payment <br /> <br />The Elk River Municipal Utilities (ERMU) has asked that the city issue equipment certificates <br />on its behalf to finance electric substation improvements as approved by the Utilities <br />Commission. ERMU does not have statutory authority to issue debt so, as in the past, the city <br />will issue the certificate, and ERMU will be responsible for payment of the debt. <br /> <br />The attached resolution states that taxes will be levied for the payment of these equipment <br />certificates, this is a legal requirement of issuing the certificates. However, these levies will be <br />cancelled annually as the debt payments will be made with electric utility revenues. <br /> <br />Action Requested <br />The City Council is asked to approve the attached resolution awarding the sale of the city's <br />$500,000 General Obligation Equipment Certificate of 2002; fixing its form and <br />specifications; directing its execution and delivery; and providing for its payment. <br /> <br />s:\council\lori\equipccrtificatc02.doc <br /> <br /> <br />