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Case # 3 <br /> Fire Station Bond Refinancing <br />By: Sean M. Sullivan, Economic Development/TIF Specialist <br /> <br />Background: <br /> <br />In 1999, bonds were issued in the amount of $1,665,000 for the construction of a fire station. <br />Lease Revenue Bonds, via the EDA were issued. As a part of the 2003 legislative session, <br />Governmental units are now allowed to issue Capital Improvement Bonds to finance municipal <br />projects such as City Halls, Police and Fire Stations. Capital Improvement Bonds versus Lease <br />Revenue bond offer a lower rate of interest of .25%. It is a sound financial decision to refinance <br />these bonds. <br /> <br />Observations: <br /> <br />Refinancing of the debt will result in approximately $150,000 in savings in interest costs for the <br />debt. In order to finalize the refinancing of this debt the EDA needs to execute the attached <br />resolution. The resolution is attached and should be executed at the meeting by the appropriate <br />officers of the EDA. The adoption of the resolution will finalize the new financing and remove <br />the EDA from the Fire Station debt. <br /> <br />Recommendation: <br /> <br />Adopt Resolution #04- <br /> <br />Review Checklist: <br />Finance Officer, Diana Lund <br />City Administrator, Jim Norman <br />Associate Planner, Megan Wald <br /> <br />EDA: 11.10.04 <br /> <br />l0 <br /> <br /> <br />