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UTILITIES COMMISSION MEETING <br />TO:FROM: <br />ERMU Commission Theresa Slominski –General Manager <br />MEETING DATE: AGENDA ITEM NUMBER: <br />October 12, 20212.3 <br />SUBJECT: <br />Central Minnesota Municipal Power AgencyBrookings-Twin Cities Project Refinance of 2012A <br />Revenue Bonds, Series 2021 –Certificate of Utility System Officer and Other City Official <br />ACTION REQUESTED: <br />Receive the executed Central Minnesota Municipal Power Agency Brookings-Twin CitiesProject <br />Refinance of 2012A Revenue Bonds, Series 2021 – Certificate of Utility System Officer and Other <br />City Official <br />BACKGROUND: <br />In February 2007, ERMU entered into an agreement to participate through Central Minnesota <br />Municipal Power Agency (CMMPA) in the CAPX2020 Brooking-Twin Cities Transmission Project. <br />This allows ERMU to own, not rent, transmission assets. In 2012, CMMPA issued approximately <br />$34 million in bonds for the Brookings project. CMMPA is a 5% owner of the project, and ERMU <br />is 15.5% of CMMPA’s 5%. There are 16 entities like ERMU participating in the CMMPA 5%. The <br />original projection for our return on investment was approximately $124,000 annually over the <br />40-year project life. <br /> <br />DISCUSSION: <br />CMMPA has initiated the process to refinance the 2012A Bonds that funded the above <br />transmission project, in a Series 2021 Bond for approximately $18,235,000. Based on current <br />market conditions, CMMPA believes significant savings can be achieved. As a “Major <br />Participant,” we needed to execute the attached Certificate of Utility System Officer and Other <br />City Official, which was done September 9, 2021, and forwarded to CMMPA. We are providing <br />the certificate for the Commission to receive at this month’s meeting. The Official Statement for <br />the bonding is available for review upon request. For reference, the certificate from 2012 is <br />attached. <br /> <br />ATTACHMENTS: <br /> Memo – CMMPA Brookings Project Refinance of 2012A Bonds <br /> 2021 Certificate of Utility System Officer and Other City Official of City of Elk River <br /> 2012 Certificate of Utility System Officer and Other City Official of City of Elk River - for <br />reference only <br /> <br /> <br /> <br />______________________________________________________________________________ <br />Page 1 of 1 <br />36 <br />