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Item # 5. I . <br />~~ti~ <br />~~ <br />tver <br />MEMORANDUM <br />TO: Mayor and City Council <br />FROM: Tim Simon, Finance Director <br />DATE: April 5, 2010 <br />SUBJECT: Presentation from Mark Ruff, Ehlers and Associates on Bond <br />Rating and Results of Bond Sale <br />Mark Ruff from Ehlers and Associates will be at the City Council meeting to review the <br />recent bond rating upgrade and the results of the bond sale conducted on March 24, 2010. <br />On March 18, 2010 Standard and Poor's assigned its AA+ rating to the City of Elk River. I <br />have attached the complete report received from Standard and Poor's. This is a significant <br />accomplishment for the City. Listed below are a few highlights from the rating report. <br />• Access to the deep and diverse Minneapolis-St. Paul and St. Cloud, Minn. <br />Metropolitan economies; <br />• Favorable economic indicators, reflecting strong income levels and extremely strong <br />market value per capita; <br />• Maintenance of very strong reserves, couple with conservative and strong financial <br />management policies that include long-range budget and capital plans; and <br />• Moderate debt burden. <br />On March 24, 2010 the pricing committee met and approved awarding the bond sale to <br />Fifth Third Bank. A total of nine bids were received. In addition, Fifth Third Bank paid a <br />premium of over $300,000 so we were able to change the bond size. The true interest cost is <br />2.878 percent and the savings will be $325,735.03 over the life of the bonds. <br />Next steps <br />The EDA will approve the bond documents at the April 12 meeting and the Utilities <br />Commission will approve the changes to the sublease of the City Hall space at its April <br />meeting. <br />Attachments <br />• Standard and Poor's rating report for the City of Elk River dated March 18, 2010 <br />