5.1. SR 06-28-1999 - Laserfiche WebLink

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rei ----'\) ( ); ~li< Item #5.1. MEMORANDUM RiveF': Mayor & City Council FROM: Lori Johnson, Finance Director DATE: June 28, 1998 SUBJECT: Consider Resolution Providing for the Issuance and Sale of the City's $5,725,000 General Obligation Improvement Bond, Series 1999A Attached is a resolution to award the sale of the city's $5,725,000 General Obligation Improvement Bond, Series 1999A. This issue finances the water and sewer portions of the East Elk River project. Also attached for your review is a copy of the Official Statement for this bond issue. . As we have discussed previously, there are several revenue sources obligated to the payment of this bond issue. Those include mainly special assessments with smaller portions from Tax Increment Financing District 19, water and sewer revenues, and a tax levy. The tax levy of $145,000 can be canceled if special assessments are received as projected. The tax increment financing portion of the debt requires that the Economic Development Authority approve a tax increment pledge agreement to cover $630,000 of principal included in this bond issue. That agreement, a copy of which is attached for your review, will be presented to the EDA for approval at its July 12 meeting. On June 15, the city was pleased to host Jennifer Davis, financial analyst with Moody's Investors Service, for a brief meeting and tour of the city. Mter an opportunity to meet with the mayor and several department heads, Ms. Davis went on an hour long tour of the city. This is the first time that Moody's has visited Elk River, and I believe this opportunity to see what Elk River has to offer and how the city has handled growth issues will be a benefit to the city during the rating process. The city's current rating is Baal. At this time, the rating for this issue has not yet been determined. The rating committee typically meets and determines the rating a day or two before the issue is sold. The updated rating will be presented to the Council on Monday. I will be out of the office next week and will not be in attendance at the council meeting. Dave MacGillivray, Springsted, Inc., will be at the meeting to present the bid results, which will be tabulated Monday moming, as well as to answer any questions you may have. . Action Reauested The City Council is asked to consider the Resolution Providing for the Issuance and Sale of the City's $5,725,000 General Obligation Improvement Bond, Series 1999A. 13065 Orono Parkway · P.O. Box 490. Elk River, MN 55330. TDD & Phone: (612) 441-7420. Fax: (612) 441-7425