5. EDSR 12-10-2012 - Laserfiche WebLink

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,/ Elk REQUEST FOR ACTION River To Item Number Economic Development Authori 5 Agenda Section Meeting Date Prepared by Public Hearing December 10, 2012 Tim Simon, Finance Director Item Description Reviewed by Refunding the General Obligation Bonds, Series 2007B,Public Hearing Reviewed by Action Requested • Conduct the public hearing • A resolution providing for the sale of General Obligation Refunding Bonds, Series 2013A; fixing their form and specifications; directing their execution and delivery;and providing for their payment Background/Discussion On November 13, 2012 the Economic Development Authority (EDA) passed a resolution calling for a public hearing on the issuance of General Obligation Refunding Bonds for an interest cost savings on the advance refunding of the General Obligation Bonds, Series 2007B. The original proceeds of which were used for the acquisition and betterment of an existing recreation facility (YMCA project). Mark Ruff from Ehlers will be at the meeting to review this refinancing and any questions the commission may have. The EDA is being asked to approve a "parameters" resolution that will allow flexibility of when the bonds can be sold in the competitive market. Currently, Ehlers is looking at pricing the bonds in mid- January and closing after February 1" to be within 4 years of the call date, as outlined in the City's debt policy. This process worked extremely well when we refinanced bonds in 2010. A pricing committee will be established to review and either reject or accept the bonds on the sale date. The pricing committee will consist of the City Administrator, Finance Director, Mayor, President and Executive Director of the EDA.The EDA will want to consider deciding tonight if they are ok with who is on the committee. The Pricing Committee is authorized and directed,with the advice of the City's financial advisor,Ehlers& Associates, Inc.,to (a) review proposals for the sale of the Bonds, (b) award the sale of the Bonds to the prospective purchaser (the"Purchaser"). The Board of Commissioners will meet on the first practicable date after acceptance by the Pricing Committee to ratify such acceptance and take any other appropriate action. Per our Debt policy: Advance refunding bonds shall not be utilized unless present value savings of 4%to 5% of refunded principal is achieved and unless the call date is within 4 years. The state law minimum is 3% of refunded principal. N:\Public Bodies\City Council\Finance\Tim\2012\YMC Arefundingbondspresalereport.doc