6.1. SR 03-08-1993 - Laserfiche WebLink

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ITEM 6. 1. TO: MAYOR AND CITY COUNCIL ~~ FROM: LORI JOHNSON, FINANCE DIRECTOR DATE: MARCH 5, 1993 SUBJECT: RESOLUTION INITIATING THE PROCESS FOR THE SALE OF THE CITY'S GENERAL OBLIGATION REFUNDING BOND SERIES 1993A In 1985, the City issued two General Obligation Tax Increment Financing Bonds. The first issue in the amount of $850,000 was for the water tower project, TIF Districts No. 1 and No.3. The second issue in the amount of $130,000 was for the Guardian Angels project, TIF District No.2. Because of the favorable interest rates, the City is now in a position to advance refund these two bond issues. The net interest cost on the 1985 issues is 8.571 percent and the net interest cost on the new issue is estimated at 4.260 percent. The refunding should result in an interest savings of approximately $24,000. . Attached is a copy of the Resolution Initiating the Process for the Sale of the City's General Obligation Refunding Bond Series 1993A. The second attachment is a copy of the Recommendations for this bond from Springsted, Incorporated. The Recommendations give additional details regarding bond issue. The new issue will be in the amount of $510,000. The sale date is set for AprilS. The refunding issue will continue to be paid from Tax Increment generated by TIF Districts No.1, No. 2, and No.3. Although the bond issues will now become one issue, there will be two separate maturity schedules so that increments from TIF No. 1 and TIF No. 3 will be applied to the portion of the new issue that is for the water tower and increments from TIF No. 2 will be applied to the portion of the new issue that is for ~he Guardian Angels project. Staff recommends adopt!ng the attached resolution which will authorize the sale of $510,000 General Obligation Refunding Bonds. . 720 Dodge Avenue N.W., Elk River, Minnesota 55330 (612) 441-7420