ITEM: 12.2 ADMINISTRATION - Joe Huss, Finance Director
Title
AWARDING THE SALE OF $2,995,000 GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 2012B; FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; PROVIDING FOR THEIR PAYMENT; AND PROVIDING FOR THE REDEMPTION OF BONDS REFUNDED THEREBY
Background
On April 5, 2012, Council approved Springsted, Inc., the City's Financial Advisor, to accept bids for the sale of $2,995,000 general obligation crossover refunding bonds. The bonds would be issued per MN Statutes, Chapters 429 and 475, and the proceeds from the bonds will be used to refund the City's General Obligation Improvement Bonds, Series 2004B. The 2004B bonds have a final maturity of February 1, 2020. The refunding would not extend the maturity schedule and is expected to result in net present values savings for the City in excess of $100,000. Bids were due at 10:00 a.m. this morning. The attached resolution is a template and is correct as to form, but incomplete, as final bid numbers will not be available until mid-day on May 3. A representative from Springsted will be at the meeting to deliver the completed resolution, and inform the Council of the bid results and the recommended Council action.
In addition to the resolution, Staff also requests Council approve the attached Refunding Escrow Agreement with US Bank, the bonds' registrar and paying agent. The agreement authorizes US Bank to act as the City's escrow agent to ensure the refunding of the 2004B Bonds with the proceeds from the new bond issue.
The resolution calling for the sale of the bonds was approved by Council at the April 5, 2012 Council meeting.
Schedule of Actions
Resolution authorizing sale of bonds |
April 5, 2012 |
Resolution awarding sale of bonds |
May 3, 2012 |
Recommendation
By motion, approve attached Resolution and Refunding Escrow Agreement,
Body
RESOLUTION ATTACHED