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<br />A.( ~( <br />( ?I <br />fl~ River <br /> <br />Agenda Item 7.4. <br /> <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />MAYOR & CITY COUNCIL ~ <br />LORI JOHNSON, FINANCE DIRECTOR ~~ <br /> <br />FROM: <br /> <br />DATE: <br /> <br />APRIL 28, 1994 <br /> <br />SUBJECT: <br /> <br />RESOLUTIONS INITIATING THE PROCESS <br />FOR THE SALE OF THE CITY'S $3,495,000 <br />GO IMPROVEMENT BONDS, SERIES 1994A; <br />$1,280,000 GO SEWER REVENUE BONDS, <br />SERIES 1994B; AND $1,080,000 GO STORM <br />SEWER REVENUE BONDS, SERIES 1994C <br /> <br />e <br /> <br />Attached you will find the Resolutions initiating the process for the sale of each of the <br />above-referenced bond issues. The City's fiscal advisor for the issues is Springsted, Inc. <br />A copy of Springsted's Recommendations for the three bond issues is attached. I will <br />briefly highlight each of the bond issues and also address the library expansion financing <br />later in this memo. <br /> <br />$3~495~000 GO Improvement Bond~ Series 1994A <br /> <br />These bonds are being issued to finance the improvements related to the Elk Park Center <br />development. As we have previously discussed, the estimated total project cost is <br />$3,776,000. Of this, approximately $600,000 will be received in turnback funds and the <br />remainder will be assessed to the developer and other benefiting property owners. Total <br />assessments for the project equal approximately $3,385,000. Target has agreed to prepay <br />its assessment of approximately $600,000. After taking into consideration the assessment <br />prepayment, adding capitalized interest and issuance costs, the bond issue requirement is <br />$3,495,000. At the developers request, the City has agreed to delay payment of the first <br />installment of the special assessments which will be levied in 1994 until May, 1996. This <br />requested one year payment delay necessitates the addition of a substantial amount of <br />capitalized interest to be included in the bond issue. <br /> <br />$1~280,000 GO Sewer Revenue Bond. Series 1994B <br /> <br />e <br /> <br />The second Resolution authorizes the issuance of sewer revenue bonds to finance the <br />interim expansion at the treatment plant. As you will recall, the bids were approximately <br />$80,000 less than the estimated $1,000,000 construction cost. Due to timing, the size of <br />this issue has remained at $1,280,000 which is the original estimate. Any proceeds not <br /> <br />P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br />