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3.4. SR 12-05-2005 *Item 3.It! MEMORANDUM TO: Mayor and City Council FROM: Lori Johnson, Finance and Administrative Services Director/Interim City Administrator DATE: December 5, 2005 SUBJECT: Resolution Calling for Redemption of G.O. Improvement Bonds, Series 1997 A; G.O. Improvement Bonds, Series 1999A; G.O. Permanent Improvement Revolving Fund Bonds, Series 2000B; and G.O. Improvement Refunding Bonds, Series 2000C Attached is a resolution calling for the early redemption of bond issues including the 1997 A G.O. Improvement Bonds, 1999A G.O. Improvement Bonds, 2000B Permanent Improvement Revolving Bonds, and 2000C Refunding Bonds. These bonds were issued to fund various improvement projects that were assessed to the benefiting property owners. Special assessment prepayments have created cash reserves large enough to fund the prepayment of these bond issues. Prepayment of the issues will result in interest savings on the prepaid balances. Action Requested The City Council is asked to adopt the attached resolution calling for redemption of outstanding 1997A G.O. Improvement Bonds, 1999A G.O. Improvement Bonds, 2000B Permanent Improvement Revolving Bonds, and 2000C Refunding Bonds. . . . EXTRACT OF MINUTES OF MEETING CITY COUNCIL OF THE CITY OF ELK RIVER, MINNESOTA Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Elk River, Minnesota, was duly called and held at City Hall in Elk River, Minnesota, on Monday, December S, 200S. The following members were present: and the following members were absent: Councilmember introduced the following resolution and moved its adoption: Resolution No. OS-_ RESOLUTION CALLING FOR REDEMPTION OF OUTSTANDING: GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1997A, DATED AUGUST 1,1997 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1999A DATED JULY 1,1999 GENERAL OBLIGATION PERMANENT IMPROVEMENT REVOLVING FUND BONDS, SERIES 2000B, DATED NOVEMBER 1, 2000 GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 2000C, DATED NOVEMBER 1, 2000 WHEREAS, the City Council of the City of Elk River, Minnesota, issued on behalf of the City of Elk River, Minnesota $1, 16S,000 General Obligation Improvement Bonds, Series 1997 A, dated August 1, 1997 (the "1997 A Bonds"), of which $28S,000 still remains outstanding; and WHEREAS, the City Council of the City of Elk River, Minnesota, issued on behalf of the City of Elk River, Minnesota $S,72S,OOO General Obligation Improvement Bonds, Series 1999A, dated July 1, 1999 (the "1999A Bonds"), of which $3,S1 0,000 still remains outstanding; and WHEREAS, the City Council of the City of Elk River, Minnesota, issued on behalf of the City of Elk River, Minnesota $1,27S,000 General Obligation Permanent Improvement Revolving Fund Bonds, Series 2000B, dated November 1, 2000 (the "2000B Bonds"), of which $93S,000 still remains outstanding; and WHEREAS, the City Council of the City of Elk River, Minnesota, issued on behalf of the City of Elk River, Minnesota $900,000 General Obligation Improvement Refunding Bonds, Series 2000C, dated November 1, 2000 (the "2000C Bonds"), of which $37S,000 still remains outstanding; and WHEREAS, all of the1997 A Bonds maturing in the years 2006 through 2013, inclusive, are subject to redemption and prepayment at the option of the City on February 1 , 200S, and on any date thereafter at a price of par, plus accrued interest to the date of redemption, all as provided in the resolution adopted by the City Council of the City of Elk River, Minnesota on July 28, 1997, authorizing the issuance ofthe1997A Bonds (the "July 1997 Resolution"); and . . . WHEREAS, all of the1999A Bonds maturing in the years 2007 through 2015, inclusive, are subject to redemption and prepayment at the option of the City on February 1, 2006, and on any date thereafter at a price of par, plus accrued interest to the date of redemption, all as provided in the resolution adopted by the City Council of the City of Elk River, Minnesota on June 28, 1999, authorizing the issuance of the1999A Bonds (the "June 1999 Resolution"); and WHEREAS, all of the 2000B Bonds maturing in the years 2007 through 2016, inclusive, are subject to redemption and prepayment at the option of the City on February 1, 2006, and on any date thereafter at a price of par, plus accrued interest to the date of redemption, all as provided in the resolution adopted by the City Council of the City of Elk River, Minnesota on October 23, 2000, authorizing the issuance of the 2000B Bonds (the "October 2000B Resolution"); and WHEREAS, all of the 2000C Bonds maturing in the years 2006 through 2008, inclusive, are subject to redemption and prepayment at the option of the City on February 1, 2005, and on any date thereafter at a price of par, plus accrued interest to the date of redemption, all as provided in the resolution adopted by the City Council of the City of Elk River, Minnesota on October 23, 2000, authorizing the issuance of the 2000C Bonds (the "October 2000C Resolution"); and WHEREAS, the City Council of the City of Elk River, Minnesota deems it desirable and in the best interests of the City of Elk River to call those 1997 A Bonds maturing in the years 2007 through 2013, inclusive, totaling $210,000 in principal amount, on February 1, 2006, in accordance with the July 1997 Resolution; and WHEREAS, the City Council of the City of Elk River, Minnesota deems it desirable and in the best interests of the City of Elk River to call those 1999A Bonds maturing in the years 2007 through 2015, inclusive, totaling $3,060,000 in principal amount, on February 1, 2006, in accordance with the June 1999 Resolution; and WHEREAS, the City Council of the City of Elk River, Minnesota deems it desirable and in the best interests of the City of Elk River to call those 2000B Bonds maturing in the years 2007 through 2016, inclusive, totaling $850,000 in principal amount, on February 1, 2006, in accordance with the October 2000B Resolution; and WHEREAS, the City Council of the City of Elk River, Minnesota deems it desirable and in the best interests of the City of Elk River to call those 2000C Bonds maturing in the years 2007 through 2008, inclusive, totaling $245,000 in principal amount, on February 1, 2006, in accordance with the October 2000C Resolution; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota, as follows: (1) All of the 1997A Bonds maturing in the years 2007 through 2013, inclusive, totaling $210,000 in principal amount shall be redeemed and prepaid on February 1, 2006, at par, plus accrued interest. All of the 1999A Bonds maturing in the years 2007 through 2015, inclusive, totaling $3,060,000 in principal amount shall be redeemed and prepaid on February 1, 2006, at par, plus accrued interest. All of the 2000B Bonds maturing in the years 2007 through 2016, inclusive, totaling $850,000 in principal amount shall be redeemed and prepaid on February 1, 2006, at par, plus accrued interest. All of the 2000C Bonds maturing in the years 2007 through 2008, inclusive, totaling $245,000 in principal amount shall be redeemed and prepaid on February 1, 2006, at par, plus accrued interest. . (3) . . (2) The City Clerk of the City of Elk River, Minnesota is hereby authorized and directed to give mailed notice of call, prior to February 1, 2006, for the 1997 A Bonds, to the Bond Registrar/Paying Agent, U.S. Bank National Association (formerly First Trust National Association), in St. Paul, Minnesota, and to all holders of the Bonds. Said notice shall be substantially in the form shown as Exhibit A. The City Clerk of the City of Elk River, Minnesota is hereby authorized and directed to give mailed notice of call, prior to February 1, 2006, for the 1999A Bonds, to the Bond Registrar/Paying Agent, U.S. Bank National Association (formerly U.S. Bank Trust National Association), in St. Paul, Minnesota, and to all holders of the Bonds. Said notice shall be substantially in the form shown as Exhibit B. The City Clerk of the City of Elk River, Minnesota is hereby authorized and directed to give mailed notice of call, prior to February 1, 2006, for the 2000B Bonds, to the Bond Registrar/Paying Agent, U.S. Bank National Association (formerly U.S. Bank Trust National Association), in St. Paul, Minnesota, and to all holders of the Bonds. Said notice shall be substantially in the form shown as Exhibit C. The City Clerk of the City of Elk River, Minnesota is hereby authorized and directed to give mailed notice of call, prior to February 1, 2006, for the 2000C Bonds, to the Bond Registrar/Paying Agent, U.S. Bank National Association (formerly U.S. Bank Trust National Association), in St. Paul, Minnesota, and to all holders of the Bonds. Said notice shall be substantially in the form shown as Exhibit D. The City Clerk of the City of Elk River is hereby authorized and directed to deposit with the Bond Registrar/Paying Agent of the 1997 A Bonds, U.S. Bank National Association (formerly First Trust National Association), prior to the call date of February 1, 2006, sufficient funds to pay all principal and interest due on the Bonds as of the call date. The City Clerk of the City of Elk River is hereby authorized and directed to deposit with the Bond Registrar/Paying Agent of the 1999A Bonds, U.S. Bank National Association (formerly U.S. Bank Trust National Association), prior to the call date of February 1, 2006, sufficient funds to pay all principal and interest due on the Bonds as of the call date. The City Clerk of the City of Elk River is hereby authorized and directed to deposit with the Bond Registrar/Paying Agent of the 2000B Bonds, U.S. Bank National Association (formerly U.S. Bank Trust National Association), prior to the call date of February 1, 2006, sufficient funds to pay all principal and interest due on the Bonds as of the call date. The City Clerk of the City of Elk River is hereby authorized and directed to deposit with the Bond Registrar/Paying Agent of the 2000C Bonds, U.S. Bank National Association (formerly U.S. Bank Trust National Association), prior to the call date of February 1, 2006, sufficient funds to pay all principal and interest due on the Bonds as of the call date. . . . The motion for the adoption of the foregoing resolution was duly seconded by Member and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. Mayor City Clerk . . . STATE OF MINNESOTA COUNTY OF SHERBURNE CITY OF ELK RIVER I, the undersigned, being the duly qualified and City Clerk of the City of Elk River, Minnesota (the "City"), hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on Monday, December S, 200S, with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes, insofar as they relate to the redemption of certain General Obligation Improvement Bonds, Series 1997 A; General Obligation Improvement Bonds Series 1999A; General Obligation Permanent Improvement Revolving Fund Bonds, Series 2000B; and General Obligation Improvement Refunding Bonds, Series 2000C of the City. WITNESS My hand as City Clerk and the official seal of the City this Sth day of December, 200S. City Clerk City of Elk River, Minnesota (SEAL) . . . EXHIBIT A NOTICE OF REDEMPTION General Obligation Improvement Bonds, Series 1997 A Dated August 1, 1997 City of Elk River, Minnesota NOTICE IS HEREBY GIVEN that by order of the City Council of the City of Elk River, Minnesota, there have been called for redemption and prepayment on February 1, 2006 the following outstanding bonds of the City designated as General Obligation Improvement Bonds, Series 1997 A, dated August 1, 1997: Maturity Date Principal Amount Interest Rate CUSIP Number* February 1, 2007 $ 75,000 4.70% 287407 WH9 February 1,2013 135,000 5.00% 287407 WP1 The bonds are being called at a price of 100% of their principal amount plus accrued interest to February 1, 2006, on which date they will cease to bear interest. Holders of such bonds hereby called for redemption should present their Bonds for payment to U.S. Bank National Association (formerly First Trust National Association) at the address below, on or before February 1, 2006. If by Mail If by Hand or Overniaht Mail U.S. Bank National Association Corporate Trust Department P.O. Box 64111 St. Paul, MN 55164-0111 U.S. Bank National Association U.S. Bank Trust Center Bond Drop Window, 1st Floor 60 Livingston Avenue St. Paul, Minnesota, MN 55107 It is recommended that you mail your bonds registered or certified mail to guard against loss. BY ORDER OF THE CITY COUNCIL CITY OF ELK RIVER, MINNESOTA /s/ Dated: December 5, 2005 Important Notice: In compliance with the Economic Growth and Tax Relief Reconciliation Act of 2001, 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 November be obtained at a bank or other financial institution. *Neither the City nor the Bond Registrar/Paying Agent shall be responsible for the selection of or use of the CUSIP number, and no representation is made as to its correctness indicated in the Notice of Redemption. CUSIP numbers are included solely for the convenience of the Holders. . . . EXHIBIT B NOTICE OF REDEMPTION General Obligation Improvement Bonds, Series 1999A Dated July 1, 1999 City of Elk River, Minnesota NOTICE IS HEREBY GIVEN that by order of the City Council of the City of Elk River, Minnesota, there have been called for redemption and prepayment on February 1, 2006 the following outstanding bonds ofthe City designated as General Obligation Improvement Bonds, Series 1999A, dated July 1, 1999: Maturitv Date Principal Amount Interest Rate CUSIP Number* February 1,2007 $440,000 4.70% 287407 YH7 February 1, 2008 280,000 4.80% 287407 YJ3 February 1,2009 280,000 4.85% 287407 YKO February 1, 2010 275,000 4.90% 287407 YL8 February 1,2011 275,000 4.90% 287407 YM6 February 1,2012 280,000 4.95% 287407 YN4 February 1,2013 280,000 5.00% 287407 YP9 February 1, 2014 285,000 5.00% 287407 Y07 February 1,2015 665,000 5.00% 287407 YR5 The bonds are being called at a price of 100% of their principal amount plus accrued interest to February 1, 2006, on which date they will cease to bear interest. Holders of such bonds hereby called for redemption should present their Bonds for payment to U.S. Bank National Association (formerly U.S. Bank Trust National Association) at the address below, on or before February 1, 2006. If bv Mail If bv Hand or Overniaht Mail U.S. Bank National Association Corporate Trust Department P.O. Box 64111 St. Paul, MN 55164-0111 U.S. Bank National Association U.S. Bank Trust Center Bond Drop Window, 151 Floor 60 Livingston Avenue St. Paul, Minnesota, MN 55107 It is recommended that you mail your bonds registered or certified mail to guard against loss. BY ORDER OF THE CITY COUNCIL CITY OF ELK RIVER, MINNESOTA /s/ Dated: December 5, 2005 Important Notice: In compliance with the Economic Growth and Tax Relief Reconciliation Act of 2001, 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 November be obtained at a bank or other financial institution. *Neither the City nor the Bond Registrar/Paying Agent shall be responsible for the selection of or use of the CUSIP number, and no representation is made as to its correctness indicated in the Notice of Redemption. CUSIP numbers are included solely for the convenience of the Holders. . . . EXHIBIT C NOTICE OF REDEMPTION General Obligation Permanent Improvement Revolving Fund Bonds, Series 2000B Dated November 1, 2000 City of Elk River, Minnesota NOTICE IS HEREBY GIVEN that by order of the City Council of the City of Elk River, Minnesota, there have been called for redemption and prepayment on February 1, 2006 the following outstanding bonds of the City designated as General Obligation Permanent Improvement Revolving Fund Bonds, Series 2000B, dated November 1, 2000: Maturity Date Principal Amount Interest Rate CUSIP Number* February 1,2007 $85,000 4.70% 287407 A75 February 1,2008 85,000 4.75% 287407 A83 February 1,2009 85,000 4.80% 287407 A91 February 1, 2010 85,000 4.85% 287407 B25 February 1,2011 85,000 4.95% 287407 ZU7 February 1,2012 85,000 5.00% 287407 ZV5 February 1, 2013 85,000 5.10% 287407 ZW3 February 1,2014 85,000 5.20% 287407 ZX1 February 1, 2015 85,000 5.30% 287407 ZY9 February 1,2016 85,000 5.40% 287407 ZZ6 The bonds are being called at a price of 100% of their principal amount plus accrued interest to February 1, 2006, on which date they will cease to bear interest. Holders of such bonds hereby called for redemption should present their Bonds for payment to U.S. Bank National Association (formerly U.S. Bank Trust National Association) at the address below, on or before February 1, 2006. If bv Mail If bv Hand or Overniaht Mail U.S. Bank National Association Corporate Trust Department P.O. Box 64111 St. Paul, MN 55164-0111 U.S. Bank National Association U.S. Bank Trust Center Bond Drop Window, 15t Floor 60 Livingston Avenue St. Paul, Minnesota, MN 55107 It is recommended that you mail your bonds registered or certified mail to guard against loss. Dated: December 5, 2005 BY ORDER OF THE CITY COUNCIL CITY OF ELK RIVER, MINNESOTA /s/ Important Notice: In compliance with the Economic Growth and Tax Relief Reconciliation Act of 2001, 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 November be obtained at a bank or other financial institution. *Neither the City nor the Bond Registrar/Paying Agent shall be responsible for the selection of or use of the CUSIP number, and no representation is made as to its correctness indicated in the Notice of Redemption. CUSIP numbers are included solely for the convenience of the Holders. . . . EXHIBIT D NOTICE OF REDEMPTION General Obligation Improvement Refunding Bonds, Series 2000C Dated November 1, 2000 City of Elk River, Minnesota NOTICE IS HEREBY GIVEN that by order of the City Council of the City of Elk River, Minnesota, there have been called for redemption and prepayment on February 1, 2006 the following outstanding bonds of the City designated as General Obligation Improvement Refunding Bonds, Series 2000C, dated November 1, 2000: Maturity Date Principal Amount Interest Rate February 1,2007 $125,000 4.65% February 1,2008 120,000 4.70% CUSIP Number* 287407 B82 287407 B90 The bonds are being called at a price of 100% of their principal amount plus accrued interest to February 1, 2006, on which date they will cease to bear interest. Holders of such bonds hereby called for redemption should present their Bonds for payment to U.S. Bank National Association (formerly U.S. Bank Trust National Association) at the address below, on or before February 1, 2006. If by Mail If by Hand or Overniaht Mail U.S. Bank National Association Corporate Trust Department P.O. Box 64111 St. Paul, MN 55164-0111 U.S. Bank National Association U.S. Bank Trust Center Bond Drop Window, 1 sl Floor 60 Livingston Avenue St. Paul, Minnesota, MN 55107 It is recommended that you mail your bonds registered or certified mail to guard against loss. BY ORDER OF THE CITY COUNCIL CITY OF ELK RIVER, MINNESOTA /s/ Dated: December 5,2005 Important Notice: In compliance with the Economic Growth and Tax Relief Reconciliation Act of 2001, 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 November be obtained at a bank or other financial institution. *Neither the City nor the Bond Registrar/Paying Agent shall be responsible for the selection of or use of the CUSIP number, and no representation is made as to its correctness indicated in the Notice of Redemption. CUSIP numbers are included solely for the convenience of the Holders.