8.4. SR 05-07-2012"t c` REQUEST FOR ACTION
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AGENDA SECTION MEETING DATE PREPARED BY
General Business Ma 7, 2012 Tim Simon, Finance Director
ITEM DESCRIPTION REVIEWED By
Resolution Providing for the Redemption Of Certain Cal Portner, Ci Administrator
Outstanding Liquor Store Revenue Bonds, Series 2005C REVIEWED BY
ACTION REQUESTED
The Council is asked to adopt a resolution providing fox the redemption of certain outstanding liquor
store revenue bonds, series 2005C of the city.
BACKGROUND/DISCUSSION
In 2005, the City Council authorized the issuance of $1,200,000 Liquor Store Revenue Bonds, Series
2005C fox construction of Westbound Liquor Store. The bonds have a final maturity of February 1, 2015,
and the interest rate is 4.5 percent. Under the terms of the bond sale, notice must be given to the bond
holders at least fifteen days prior to the redemption in whole or in part on ox after July 1, 2012. Upon
Council approval, staff will provide written notice and payoff the bonds on July 1, 2012.
The redemption of the 2005C bonds has been anticipated as we review five-year forecasts on all of our
funds through the budget and capital improvement plan process.
FINANCIAL IMPACT
The amount needed on July 1, 2012, will be $570,000 plus accrued interest. This amount is budgeted in
the Liquor Enterprise Fund. The city will save $41,737 in interest expense over the next three years.
ATTACHMENTS
• Resolution providing for the redemption of certain outstanding liquor store revenue bonds, series
2005C of the city
Action Motion by Second by Vote
Follow Up
F~AIIE~EIr B~
N:\Public Bodies\Ciry Council\Council RCA\Agenda Packet\05-07-2012\prepaymentofliquorstorebonds.docx `~
Extract of Minutes of Meeting of the
City Council of the City of Elk River,
Sherburne County, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the Council of the City of Elk
River, Minnesota, was duly held in the City Hall in the City of Elk River, on Monday, May 7, 2012,
commencing at 6:30 P.M.
The following members were present:
and the following were absent:
Member introduced the following resolution and moved its adoption:
RESOLUTION N0.12-
RESOLUTION PROVIDING FOR THE REDEMPTION OF CERTAIN OUTSTANDING
LIQUOR STORE REVENUE BONDS, SERIES 2005C OF THE CITY
BE IT RESOLVED By the City Council of the City of Elk River, Sherburne County,
Minnesota (the "City"), as follows:
1. The City has issued its Liquor- Store Revenue Bonds, Series 2005C, dated November
1, 2005 (the "Bonds"), in the original aggregate principal amount of $1,200,000. The Bonds
maturing in installments on February 1 in the years 2013 through and including 2015, in the
aggregate principal amount of $570,000 (the "Callable Bonds"), are subject to redemption and
prepayment on July 1, 2012 and any date thereafter at a price of par plus accrued interest.
2. It is determined that it is in the sound financial management of the City that the
Callable Bonds be prepaid and redeemed on July 1, 2012, or such later date for which proper notice
of call maybe given, and such bonds are hereby called for redemption on such date.
402820v1 JSB EL185-18
3. The City Finance Director is authorized and directed, as the paying agent and bond
registrar (the "Registrar"), to mail the Notice of Call for Redemption in substantially the form
attached hereto as EXHIBIT A to the registered owners of each Bond to be redeemed at the
addresses shown on the registration books kept by the Registrar.
The motion for the adoption of the foregoing resolution was duly seconded by Member
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against:
whereupon said resolution was declared duly passed and adopted this 7~' day of May, 2012.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
402820v1 JSB EL185-18 2
STATE OF MINNESOTA )
COUNTY OF SHERBURNE ) SS.
CITY OF ELK RIVER )
I, the undersigned, being the duly qualified and acting City Clerk of the City of Elk River,
Minnesota (the "City"), do hereby certify that I have carefully compared the attached and foregoing
extract of minutes of a regular meeting of the City Council held on Monday, May 7, 2012, with the
original thereof on file in my office and the same is a full, true and complete transcript therefrom
insofar as the same relates to the prepayment and redemption of Liquor Store Revenue Bonds,
Series 2005C of the City.
WITNESS My hand as City Clerk this 7~' day of May, 2012.
Tina Allard, City Clerk
City of Elk River, Minnesota
402820v1 JSB EL185-18
EXHIBIT A
NOTICE OF CALL FOR REDEMPTION
LIQUOR STORE REVENUE BONDS, SERIES 2005C
CITY OF ELK RIVER
SHERBURNE COUNTY, MINNESOTA
NOTICE IS HEREBY GIVEN that, by order of the City Council of the City of Elk River,
Sherburne County, Minnesota, there have been called for redemption and prepayment on
July 1, 2012
all outstanding bonds of the City designated as Liquor Store Revenue Bonds, Series 2005C,
dated July 1, 2005, numbered R-1 and R-2, totaling $570,000 in aggregate principal amount,
each bond maturing in installments on February 1 in the years 2013 through 2015, both
inclusive:
Year of Maturity
Amount
2013 $ 87,500
2014 97,500
2015 100,000
The bonds are being called at a price of par plus accrued interest to July 1, 2012, on which date
all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption
are requested to present their bonds for payment at the main office of the Finance Director, City
of Elk River, Minnesota, on or before July 1, 2012, at the following address:
City of Elk River, Minnesota
13065 Orono Parkway NW
Elk River, MN 55330-5600
Attention: Finance Director
Important Notice: In compliance with the Jobs and Growth Tax Relief Reconciliation
Act of 2003, federal backup withholding tax will be withheld at the applicable backup
withholding rate in effect at the time the payment by the redeeming institutions if they are not
provided with your social security number or federal employer identification number, properly
certified. This requirement is fulfilled by submitting a W-9 Form, which may be obtained at a
bank or other financial institution.
Dated: May 7, 2012.
BY ORDER OF THE CITY COUNCIL
402820v1 JSB EL185-18 A_ 1