5.3. SR 08-02-2004 - Laserfiche WebLink

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Item 5.3. TO: FROM: DATE: SUBJECT: MEMORANDUM Mayor and City Council Lori Johnson, Finance Director August 2, 2004 Consider Resolution Concurring in the Action of the Board of Commissioners of the Public Utilities Commission of the City of Elk River in Providing for the Issuance and Sale of $940,000 Electric Revenue Bonds, Series 2004A Attached is a resolution requiring action by the City Council in order for the 2004A electric revenue bonds to be issued. The Elk River Municipal Utility Commission will also be approving a resolution providing for the issuance and sale of $940,000 electric revenue bonds, series 2004A and pledging that revenues for the security thereof at its special meeting to be held on Tuesday, August 3, 2004 at 12:30 p.m. at City Hall. The resolution to be approved by the ERMU Commission secures the payment of the bond paid entirely with electric revenues. The city resolution states that the city concurs with the issuance and the pledge of security for payment of the bond. That resolution is also attached for your reference. As we have discussed previously, the City Council is approving its resolution prior to receiving bids on the bond with the understanding that a pricing committee will review the bids prior to the ERMU Commission's consideration and adoption of the resolution providing for the issuance and sale of the bonds. At this time, it is estimated that the interest rate will not exceed 5.25%. Actioa Requested The City Council is asked to approve the attached resolution concurring in the action of the Board of Commissioners of the Public Utilities Commission of the City of Elk River in providing for the issuance and sale of $940,000 electric revenue bonds, series 2004A. S:\Council~Lori~2004\ERMUbonds.doc