Title
Authorizing the sale of $1,555,000 General Obligation Equipment Certificates of Indebtedness, Series 2011B
Background
The attached resolution calls for the sale of $1,555,000 in General Obligation Equipment Certificates of Indebtedness, and sets the sale date of the certificates for October 20, 2011. The proceeds will finance the purchase of five vehicles for the SBM Fire Department. The vehicles are scheduled for replacement pursuant to the SBM five-year capital plan, and are as follows:
Three mini-pumpers |
$1,200,000 |
One utility (air) truck |
$275,000 |
Chief's vehicle |
$38,000 |
|
$1,513,000 |
Issuance costs of $26,000, plus the allowance for the underwriter's discount and rounding amounts totaling $42,000 bring the entire project up to the $1,555,000. The bonds will be repaid over five years by the three participating cities according to each city's respective share as calculated annually pursuant to the Joint Powers Agreement. Should either the costs to purchase the equipment or the other costs be for less than the bonding proceeds, the proceeds could be used to reduce annual tax levies that will be used for repayment of the debt.
Springsted, Inc., the City's Financial Consultant, has provided a recommendation to the City (attached) that outlines the sale date, amount, and structure of the proposed certificates.
Recommended Council Action
By motion, approve the resolution.
Body
CITY OF BLAINE
RESOLUTION PROVIDING FOR THE COMPETITIVE
NEGOTIATED SALE OF $1,555,000 GENERAL OBLIGATION
EQUIPMENT CERTIFICATES OF INDEBTEDNESS, SERIES 2011B
BE IT RESOLVED by the City Council of the City of Blaine, Minnesota, as follows:
1. Finding; Amount and Purpose. It is hereby found, determined and declared that the City of Blaine (the "City"), should issue its $1,555,000 General Obligation Equipment Certificates of Indebtedness, Series 2011B (the "Certificates"), to finance various equipment for municipal fire protection and firefighting purposes (the "Project").
2. Meeting. This City Council shall meet on the date and at the time and place specified in the form of Terms of Proposal attached hereto as Exhibit A for the purpose of awarding the sale of the Certificates.
3. Competitive Negotiated Sale. The City has retained Springsted Incorporated as an independent financial advisor, and the City Council hereby determines to sell the Certificates by private negotiation, by way of a competitive sale in response to Terms of Proposal for the Certificates which are not published in any newspaper or journal.
4. Terms of Proposal. The terms and conditions of the Certificates and the sale thereof are fully set forth in the "Terms of Proposal" attached hereto as Exhibit A and hereby made a part hereof.
Official Statement. The City Finance Director and other officers or employees of the City are hereby authorized to participate with Springsted Incorporated in the preparation of an official statement for the Certificates.