Agenda - Council - 09/14/1993 - Laserfiche WebLink

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CONSENT# CITY OF RAMSEY, MINNESOTA $2,250,000 GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 1993A By: Jessie L. Hart, Finance Officer Background: The City and Springsted have been in the process of reviewing all of its bond issues and exploring the possibility of refunding ~ issues due to the changes in interest rates. We have reviewed with the Economic Development Authority, Finance Committee and the City Council the benefits in refunding the $2,800,000 General Obligation Tax increment Bonds, Series 1987A. Enclosed for your information is the Springsted Incorporated Recommendations - Study No. R0967M1. Based on current market conditions, it is estimated that refunding these bonds could be refinanced at a net interest rate of 4.88%, providing a savings to the City, net of all costs of issuance, of approximately $231,130 with a present value savings of $160,560, or 21% of the outstanding interest cost. Based on these recommendations, it is staffs recommendation that the City proceed with the sale of a "crossover" refunding bond issue that would advance refund the 1997 through 2007 maturities of the 1987 Bonds. I I I I We are requesting that the bond sale be set for October I2, 1993. The resolution entitled "Resolution Providing for the Sale and Issuance of $2,250,000 General Obligation Tax Increment Refunding Bonds, Series 1993A was prepared by Holmes and Graven and is included with this packet. Recommendation: Recommend approval of Resolution g93-09-X2XX Providing for the Sale and Issuance of $2,250,000 General Obligation Tax increment Refunding Bonds, Series 1993A and setting the sale date for October 12, 1993. I I I i I Council Action: Motion to approve Resolution g93-09-XXX Providing for the Sale and Issuance of $2,250,000 General Obligation Tax Increment Refunding Bonds, Series 1993A and setting the sale date for October 12, 1993. Review Checklist: Finance Officer City Adminisuator