2.3 ERMUSR 10-12-2021UTILITIES COMMISSION MEETING
TO:FROM:
ERMU Commission Theresa Slominski –General Manager
MEETING DATE: AGENDA ITEM NUMBER:
October 12, 20212.3
SUBJECT:
Central Minnesota Municipal Power AgencyBrookings-Twin Cities Project Refinance of 2012A
Revenue Bonds, Series 2021 –Certificate of Utility System Officer and Other City Official
ACTION REQUESTED:
Receive the executed Central Minnesota Municipal Power Agency Brookings-Twin CitiesProject
Refinance of 2012A Revenue Bonds, Series 2021 – Certificate of Utility System Officer and Other
City Official
BACKGROUND:
In February 2007, ERMU entered into an agreement to participate through Central Minnesota
Municipal Power Agency (CMMPA) in the CAPX2020 Brooking-Twin Cities Transmission Project.
This allows ERMU to own, not rent, transmission assets. In 2012, CMMPA issued approximately
$34 million in bonds for the Brookings project. CMMPA is a 5% owner of the project, and ERMU
is 15.5% of CMMPA’s 5%. There are 16 entities like ERMU participating in the CMMPA 5%. The
original projection for our return on investment was approximately $124,000 annually over the
40-year project life.
DISCUSSION:
CMMPA has initiated the process to refinance the 2012A Bonds that funded the above
transmission project, in a Series 2021 Bond for approximately $18,235,000. Based on current
market conditions, CMMPA believes significant savings can be achieved. As a “Major
Participant,” we needed to execute the attached Certificate of Utility System Officer and Other
City Official, which was done September 9, 2021, and forwarded to CMMPA. We are providing
the certificate for the Commission to receive at this month’s meeting. The Official Statement for
the bonding is available for review upon request. For reference, the certificate from 2012 is
attached.
ATTACHMENTS:
Memo – CMMPA Brookings Project Refinance of 2012A Bonds
2021 Certificate of Utility System Officer and Other City Official of City of Elk River
2012 Certificate of Utility System Officer and Other City Official of City of Elk River - for
reference only
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