3.6. SR 08-18-2008REQUEST FOR ACTION
To Item Number
Ci Council 3.6.
Agenda Section Meeting Date Prepared by
Consent Au ust 18, 2008 Tim Simon, Finance Director
Item Description Reviewed by
Resolution Authorizing The Call Of The Outstanding General Lori ohnson, Ci Administrator
Obligation Improvement Bonds, Series 1998A. Reviewed by
Action Requested
The approval of Resolution Authorizing The Call Of The Outstanding General Obligation Improvement
Bonds, Series 1998A.
Background/Discussion
After every tax settlement, the Finance Department reviews the various debt service funds and
outstanding bond issues to determine if sufficient cash exists to pay-off any outstanding bonds assuming
they have reached their callable date.
On November 30, 1998, the City issued $1,375,000 in General Obligation Improvement Bonds to finance
the. following public improvement projects: Guardian Angels/Lake Orono improvements, Boston Street
(street/utilities), Railroad Drive (utility improvements), Business Center Drive (street/utilities), and the
1998 overlay project. These projects were assessed the costs associated in order to pay the bonds. The
bonds reach final maturity on 02/01 /2009. Sufficient funds exist in the debt service account of the
1998A bonds to call the remaining outstanding principal plus accrued interest to October 1, 2008.
Financial Impact
Prepaying the bonds would result in a savings of approximately $1,612.501ess a small amount of accrued
interest. The amount to be paid on October 1, 2008 is $75,000 outstanding principal plus accrued interest.
Attachments
Resolution Authorizing The Call Of The Outstanding General Obligation Improvement Bonds,
Series 1998A.
ACtlon Motion by Second by Vote
Follow Up
C:\Documents and Settings\jmiller\Local Settings\Temporary Internet Files\OLK3E\calling1998Abonds.doc
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE
CITY OF ELK RIVER, MINNESOTA
HELD: August 18, 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 August 18, 2008, at
6:30 p.m. for the purpose, in part, of authorizing the call of certain outstanding General
Obligation Improvement Bonds, Series 1998A.
The following members were present:
and the following were absent:
Member
introduced the following resolution and moved its adoption:
RESOLUTION 08-
RESOLUTION AUTHORIZING THE CALL OF THE OUTSTANDING
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1998A.
WHEREAS, by Resolution duly adopted on November 30, 1998 (the "Resolution"), the
City issued $1,375,000 original principal amount of General Obligation Improvement Bonds,
Series 1998A, dated December 1, 1998 (the "Bonds"). The City has sufficient funds on hand in
the debt service account of the General Obligation Improvement Bonds, Series 1998A Fund (the
"1998A Fund") to call the remaining $75,000 outstanding principal amount of the February 1,
2009 maturity of the Bonds on October 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
1998A Fund to prepay on October 1, 2008, $75,000 aggregate principal amount of the Bonds
maturing on February 1, 2009, 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.
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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 this 18th day of August,
2008.
Stephanie Klinzing, Mayor
ATTEST:
Tina Allard, City Clerk
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EXHIBIT A
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1998A
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
October 1, 2008
those outstanding bonds of the City designated General Obligation Improvement Bonds, Series
1998A, dated December 1, 1998, having the stated maturity date of Februaryl, 2009 and totaling
$75,000 in principal amount and having CUSIP number listed below:
Year CUSIP Number*
2009 287407 XKl
The bonds are being called at a price of par plus accrued interest to October 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: August 18, 2008.
BY ORDER OF THE CITY COUNCIL
CITY OF ELK RIVER, MINNESOTA
/s/ Lori Johnson, City Administrator
* 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.
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