3.7. EDSR 04-13-2009 - Laserfiche WebLink

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REQUEST FOR ACTION To Item Number Economic Develo ment Authori 3.7 Agenda Section Meeting Date Prepared by Consent Aril 13, 2009 Tim Simon, Finance Director Item Description Reviewed by Resolution Authorizing The Redemption Of Certain Outstanding City Hall And Law Enforcement Facility Revenue Reviewed by Refunding Bonds (City Of Elk River Lease Purchase Obligation) Series 1997 Action Requested The approval of Resolution Authorizing The Redemption Of Certain Outstanding City Hall And Law Enforcement Facility Revenue Refunding Bonds (City Of Elk River Lease Purchase Obligation) Series 1997 Background/Discussion After every tax settlement and bond payment the Finance Department reviews the various debt service funds and outstanding bond issues to determine if sufficient cash exists to pay-off any outstanding bonds assuming they have reached their callable date. On November 1, 1991, the City and EDA issued $2,740,000 in City Hall and Law Enforcement Facility Revenue Bonds. Subsequently on December 1, 1997, the City and EDA refunded the bonds with a final maturity of February 1, 2011. The bonds have been financed internally thru the NSP fund, Government Buildings Fund, General Fund, and Liquor Store Fund. Sufficient funds exist with the remaining amounts internally financed and the irrevocable deposit with the escrow agent ($234,155 as of 12/31 /08) to call the remaining outstanding principal plus accrued interest to June 1, 2009. The deposit with the escrow agent (US Bank) will be released and applied against the final payment. On April 6, 2009, the Ciry Council passed a Resolution Requesting Action Of The Board Of Commissioners Of The Elk River Economic Development Authority, Minnesota Calling For Redemption Of Certain Outstanding Bonds. The blank lines on section E. will be filled in once we get closer to the June 1, 2009 call date as final calculations and amounts will be determined with US bank. Financial Impact Prepaying the bonds would result in a savings of approximately $27,000 less a small amount of accrued interest. The amount to be paid on June 1, 2009 is $410,000 outstanding principal plus accrued interest. S: \Council\Tim\2009 \EDAcalling1997bonds.doc