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>1%*Elk River <br /> Municipal Utilities UTILITIES COMMISSION MEETING <br /> TO: FROM: <br /> Elk River Municipal Utilities Commission Theresa Slominski, Finance and Office Manager <br /> John Dietz—Chair <br /> Al Nadeau—Vice Chair <br /> Daryl Thompson—Trustee <br /> MEETING DATE: AGENDA ITEM NUMBER: <br /> January 14, 2014 5.1 <br /> SUBJECT: <br /> Refunding of Electric Bonds 2006A • <br /> BACKGROUND: <br /> Early last year we had discussed the potential for refunding debt issues 2006A and 2007A bonds. Our <br /> financial consultants, Springsted,provided further review of refunding bonds for Elk River Municipal <br /> Utilities, and at our December meeting we determined that we would like to refund the 2006A bonds in <br /> 2014,and in so doing,adjust the payment timeline to have the bonds paid in 2018. This positions <br /> ourselves for possible new bond issues related to the purchase power agreement with our new provider <br /> that will take effect in 2018. Terri Heaton from Springsted has been working with us on this <br /> implementation. <br /> DISCUSSION: <br /> Springsted has provided analysis on the 2006A refunding transaction and has provided information for <br /> the justification of this refunding with the adjusted timeline. A report is attached,providing the <br /> information related to the feasibility of the refunding and new timeline. Terri Heaton from Springsted will <br /> be at our Commission meeting to help explain the refunding and answer any questions you may have. <br /> Given the City of Elk River is the qualified entity to issue bonds, the resolution must be approved by the <br /> City Council to be effective. We have the necessary resolutions for the Utilities Commission and City <br /> Council to act upon in order to refund this bond issue. Successful action from the Utilities at the January <br /> 14th meeting would bring it before the City Council on January 21st for action. The resolutions are also <br /> attached for your review. <br /> The award of the bonds by the Utilities Commission would come back and be on the February 1 1'h <br /> agenda. <br /> ACTION REQUESTED: <br /> Staff recommends that the Elk River Municipal Utilities authorize and request the City Council to refund <br /> the 2006A Electric Bonds in February 2014, per the attached resolution. <br /> 1IWEAEA 11 <br /> Page1of1 1N EllEll 1 <br /> Reliable Public <br /> Power Provider POWERED To SERVE <br /> 66 <br />