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CC Regular Session <br />Meeting Date: 12/13/2011 <br />By: Diana Lund, Finance <br />Information <br />Title: <br />Authorization of Resolution # 11-12-XXX Accepting Sale of $3,090,000 General Obligation Improvement <br />Crossover Refunding Bonds, Series 2011B <br />4. 7. <br />Background: <br />In 2005 the City issued $4,3 3 5,000 General Obligation Improvement Bonds with an average interest rate of 4.41%. <br />Given current market conditions, the proposed bond sale would net a savings of approximately $186,000 with an <br />average interest rate of 2.3 0%. The savings is net of all costs and would be realized through the term of 2025. <br />The September 27, 2011 Finance Committee and October 10, 2011 City Council meeting authorized the issuance <br />of refunding bonds to take advantage of lower interest rates. The actual sale is being brought forward at this later <br />date, as the market had fluctuated and the net savings to the city fell substantially. By waiting, the city was able to <br />achieve an appoximately $14,000 in additional savings on debt service costs. <br />Annually, the city receives payment from Anoka County to cover debt service on the current issue. The payment <br />schedule is documented in the JPA between the City and County in regards to the AUAR improvements in the <br />COR project area. <br />Funding Source: <br />Debt service is covered by an annual appropriation from the County. <br />Council Action: <br />Motion to recommend that Council adopt Resolution #11-12-XXX Accepting Proposal on the Negotiated Sale of <br />$3,090,000 General Obligation Improvement Crossover Refunding Bonds, Series 2011B. <br />Bond Sale Analysis <br />$3,090,000 Bond Sale Resolution <br />Inbox Reviewed By <br />Kurt Ulrich Kurt Ulrich <br />Form Started By: Diana Lund <br />Attachments <br />Form Review <br />Final Approval Date: 12/08/2011 <br />Date <br />12/08/2011 02:51 PM <br />Started On: 12/05/2011 07:35 AM <br />