5.6. SR 01-07-2008~~ ~ j
City of
Elk -~
River
To
City Council
Agenda Section
Adnunistration
Item Descriptio
REQUEST FOR ACTION
Meeting Date
Tanuary 7, 2008
Resolution Authorizing the Call of the Outstanding Taxable
General Obligation Tax Increment Refunding Bonds, Series
2000D
Item Number
5.6.
Prepared by
Tim Simon, Finance Director
Reviewed by
Lori Tohnson, City Administrator
Action Requested
Approve a resolution authorizing the call of the outstanding taxable general obligation tax increment
refunding bonds, series 2000D
Background/Discussion
The original bonds dated April 1, 1990, series 1990A were issued to acquire, clear, and prepare the
redevelopment site for a new motel facility. On November 16, 2000, the original bonds were refunded
with series 2000D. This project is known as Tax Increment District (TIF) #7 (AmericInn). Upon calling
the bonds on March 1, 2008 all financial obligations on this TIF district will be completed, and we will
have a decertification in March of 2008. The City is required to notify the paying agent (CJS Bank) a
minimum of forty-five days before we call the bonds, so they can let the bondholders know of our
intentions. The original maturity of the 2000D bonds is February 1, 2010.
Financial Impact
The source of payment for these bonds has been tax increment. The amount to be called is $75,000 plus
some accrued interest. The balance in TIF #7 (AmericInn) is sufficient to call the remaining principal
plus accrued interest.
Attachments
^ Resolution Authorizing The Call Of The Outstanding Taxable General Obligation Tax Increment
Refunding Bonds, Series 2000D
Action Motion by
Follow Up
Second by Vote
S: \Council\Tim\2000DBondcall. doc
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE
CITY OF ELK RIVER, MINNESOTA
HELD: January 7, 2008
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Elk River, Sherburne County, Minnesota, was duly held at City Hall on January 7, 2008, at
6:30 p.m. for the purpose, in part, of authorizing the call of certain outstanding Taxable General
Obligation Tax Increment Refunding Bonds, Series 2000D.
The following members were present:
and the following were absent:
Member introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING THE CALL OF THE
OUTSTANDING TAXABLE GENERAL OBLIGATION TAX
INCREMENT REFUNDING BONDS, SERIES 2000D
WHEREAS, by Resolution duly adopted on October 23, 2000 (the "Resolution"), the
City issued $510,000 original principal amount of Taxable General Obligation Tax Increment
Refunding Bonds, Series 2000D, dated November 1, 2000 (the "Bonds"). The City has sufficient
funds on hand in the debt service account of the Taxable General Obligation Tax Increment
Refunding Bonds, Series 2000D Fund (the " 2000D Fund") to call the remaining $75,000
outstanding principal amount of the February 1, 2009 and 2010 maturities of the Bonds on
March 1, 2008, at a price of par plus accrued interest.
NOW, THEREFORE, be it resolved by the City Council of the City of Elk River,
Minnesota, as follows:
1.01 The City Council hereby determines that there exists sufficient funds in the
2000D Fund to prepay on March 1, 2008, $75,000 aggregate principal amount of Bonds
maturing on February 1 of the years 2009 and 2010, and the interest due thereon.
1.02 U.S. Bank National Association, in St. Paul, Minnesota (formerly, U.S. Bank
Trust National Association), the bank at which principal and interest on the Bonds are payable, is
hereby authorized and directed to cause the Notice of Call for Redemption attached hereto as
Exhibit A to be given in accordance with the provisions of the Resolution.
1.03 No further action shall be required of the City Council to complete prepayment of
the Bonds.
2t2z629~t
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 the same:
Whereupon the resolution was declared duly passed and adopted.
ATTEST:
Tina Allard, City Clerk
Stephanie A. Klinzing, Mayor
ziaz6a9~1 2
STATE OF MINNESOTA
COUNTY OFSHERBURNE
CITY OF ELK RIVER
I, the undersigned, being the duly qualified and acting City Administrator of the City of
Elk River, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and
foregoing extract of minutes with the original thereof on file in my office, and that the same is a
full, true and complete transcript of the minutes of a meeting of the City Council duly called and
held on the date therein indicated, insofar as such minutes relate to authorizing the call of the
outstanding Taxable General Obligation Tax Increment Refunding Bonds, Series 2000D.
WITNESS my hand officially on January 7, 2008.
Tina Allard, City Clerk
ziaa6z9~i 3
EXHIBIT A
NOTICE OF CALL FOR REDEMPTION
TAXABLE GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS,
SERIES 2000D
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
March 1, 2008
those outstanding bonds of the City designated Taxable General Obligation Tax Increment
Refunding Bonds, Series 2000D, dated November 1, 2000, having stated maturity dates in the
year 2009 and 2010 and totaling $75,000 in principal amount and having CUSII' numbers listed
below:
Year CUSIP Number*
2009
2010
The bonds are being called at a price of par plus accrued interest to March 1, 2008, on which
date all interest on the bonds will cease to accrue. Holders of the bonds hereby called for
redemption are requested to present their bonds for payment at U.S. Bank National Association
(formerly U.S. Bank Trust National Association), in St. Paul, Minnesota.
Dated: January 7, 2008.
BY ORDER OF THE CITY COUNCIL
CITY OF ELK RIVER, MINNESOTA
/s/ Tina Allard, Cit~Clerk
* The City shall not be responsible for the selection of or use of the CUSIP numbers, nor is any
representation made as to their correctness indicated in the notice. They are included solely
for the convenience of the holder.
zizz6a9~1 A-1