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City of <br /> Elk REQUEST FOR ACTION <br /> River <br /> TO ITEM NUMBER <br /> Mayor and City Council 4.5 <br /> AGENDA SECTION MEETING DATE PREPARED BY <br /> Consent June 17, 2013 Tim Simon, Finance Director <br /> ITEM DESCRIPTION REVIEWED By <br /> Resolution Providing for the Redemption of Electric Revenue Cal Portner, City Administrator <br /> Bonds 2004A REVIEWED BY <br /> ACTION REQUESTED <br /> Approve by resolution the redemption of certain outstanding Electric Revenue Bonds, Series 2004A of <br /> the city. <br /> BACKGROUND/DISCUSSION <br /> On June 11, 2013, the Elk River Municipal Utilities Commission (ERMU) passed a resolution calling for <br /> the redemption of the Electric Revenue Bonds, Series 2004A. Since the city is the issuing authority for <br /> ERMU bonds,the City Council must pass a resolution authorizing the redemption. <br /> The bonds were issued on August 1, 2004,in the principal amount of$940,000 and had a final maturity <br /> of February 1, 2015. The bonds will be called in early in August of 2013. Utility staff working with <br /> Ehlers has recommended calling in the bonds at this time. <br /> FINANCIAL IMPACT <br /> The amount needed will be $225,000 plus any accrued interest. The funding will come from the Electric <br /> Utility fund. ERMU will save $14,395 in interest expense through 2015. <br /> ATTACHMENTS <br /> • June 11, 2013, ERMU commission staff report on redemption of Electric Bonds 2004A <br /> • Resolution providing for the redemption of certain outstanding Electric Revenue Bonds, <br /> Series 2004A of the city <br /> P O W E R E D BY <br /> N:\Public Bodies\Agenda Packets\06-17-2013\Final\x4.5 sr Electric Revenue Bonds 2004A.docx aAURE <br />