4.5. SR 11-04-2013 /i
Elk Request for Action
Fiver
To Item Number
Mayor and City Council 4.5
Agenda Section Meeting Date Prepared by
Consent November 4, 2013 Tim Simon, Finance Director
Item Description Reviewed by
Redemption of Outstanding General Obligation Cal Portner, City Administrator
Sewer Revenue Refunding Bonds, Series 2005B Reviewed by
Action Requested
Motion to adopt resolution providing for the redemption of certain outstanding General Obligation
Sewer Revenue Refunding Bonds, Series 2005B, of the city.
Background/Discussion
In 1996, the City Council authorized the issuance of$2,655,000 in General Obligation Sewer Revenue
Bonds, Series 1996A, for construction at the wastewater treatment plant. Subsequently,the bonds were
refunded on June 14, 2005, as Series 2005B. The refunded 2005B bonds have a final maturity of
February 1, 2016, and the interest rate range is 3.75-4.00%.
Under the terms of the bond sale, notice must be given to the bond holders at least 30 days prior to the
redemption in whole or in part on or after February 1, 2014. Upon Council approval, staff will provide
written notice and pay off the bonds on February 1,2014.
The redemption of the 2005B bonds has been anticipated as we reviewed the forecast of the Wastewater
Budget and Capital Improvement Plan on October 21. The Wastewater Enterprise Fund will have no
outstanding debt prior to the bond issue next summer for the expansion project.
Financial Impact
The amount needed on February 1, 2014,will be $380,000 plus accrued interest. This amount is
forecasted and included in the Wastewater Enterprise Fund. The city will save approximately$22,769 in
interest expense over the next two years.
Attachments
■ Resolution Providing For The Redemption Of Certain Outstanding General Obligation Sewer
Revenue Refunding Bonds, Series 2005B Of The City
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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,November 4,
2013, 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 NO. 13-
RESOLUTION PROVIDING FOR THE REDEMPTION OF CERTAIN OUTSTANDING
GENERAL OBLIGATION SEWER REVENUE REFUNDING BONDS, SERIES 2005B
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 General Obligation Sewer Revenue Refunding Bonds, Series
2005B, dated June 14, 2005 (the"Bonds"), in the original aggregate principal amount of
$1,660,000. The Bonds maturing on February 1 in the years 2015 and 2016, in the aggregate
principal amount of$380,000 (the "Callable Bonds"), are subject to redemption and prepayment on
any date 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 February 1, 2014, or such later date for which proper
notice of call may be given, and such bonds are hereby called for redemption on such date.
433499v1 JSB EL185-23
3. The City Finance Director is authorized and directed to request that U.S. Bank
National Association, the paying agent and bond registrar (the "Registrar"), 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 4th day of November 2013.
John J. Dietz,Mayor
ATTEST:
Tina Allard, City Clerk
433499v1 JSB EL185-23 2
EXHIBIT A
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION SEWER REVENUE REFUNDING BONDS, SERIES 2005B
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
February 1, 2014
all outstanding bonds of the City designated as General Obligation Sewer Revenue Refunding
Bonds, Series 2005B, dated June 14, 2005, having stated maturity dates of February 1 in the
years 2015 and 2016, totaling $380,000 in principal amount:
Year of Maturity Amount CUSIP
2015 $185,000 287407 L57
2016 195,000 287407 L65
The bonds are being called at a price of par plus accrued interest to February 1, 2014, 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 U.S. Bank
National Association, in St. Paul, Minnesota, on or before February 1, 2014.
If by mail: If by hand:
U.S. Bank National Association U.S. Bank National Association
Corporate Trust Operations 60 Livingston Avenue
60 Livingston Avenue 3rd Floor—Bond Drop Window
EP-MN-WS3C St. Paul, MN 55107
St. Paul, MN 55107
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: November 4,2013.
BY ORDER OF THE CITY COUNCIL
433499v1 JSB EL185-23 A-I