1g. Resolution Authorizing Early Retirement of Debt
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
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Phone: 952.227.1100
Fax: 952.227.1110
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Phone: 952.227.1125
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Web Site
www.ci.chanhassen.mn.us
~
MEMORANDUM
TO:
Mayor & City Council
FROM:
G,S.
()~
Greg Sticha, Finance Director
DA TE:
December 10, 2007
SUBJ:
Resolution Authorizing Early Retirement of Debt
BACKGROUND
As part of our annual review process with our financial advisors, we have identified
three bond issues that can be retired early.
The three issues are the 1999A GO Bonds, the 2001B GO Improvement Bonds, and
the 1998C Water Revenue Bonds. In the case of the 1999A and 2001B issues, there
is sufficient cash in the debt service funds to retire both of these issues early. The
2001C Water Revenue Bonds are now callable as well; and would produce a
sufficient interest cost savings to retire them early.
The total interest cost savings these early retirements will produce is $38,000. Once
the resolution authorizing the early retirement of the debt is adopted, the bond holders
will be notified and the debt will be retired on February 1,2008.
RECOMMENDA TION
Staff recommends that the City Council pass the attached resolution authorizing the
early retirement of the 1999A, 2001B, and 1998C bond issues.
ATTACHMENT
1. Resolution.
The City 01 Chanhassen · A growing community with clean lakes, quality schools, a channing downtown, thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play.
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE
CITY OF CHANHASSEN, MINNESOTA
HELD: December 10, 2007
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Chanhassen, Carver and Hennepin Counties, Minnesota, was duly held at City Hall on
December 10, 2007, at 7:00 p.m. for the purpose, in part, of authorizing the call of certain
outstanding General Obligation Bonds of the City.
The following members were present:
and the following were absent:
Member
introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING THE CALL OF CERTAIN
OUTSTANDING GENERAL OBLIGATION BONDS OF THE CITY
WHEREAS, by Resolution duly adopted on May 26,1998 (the "1998 Resolution"), the
City issued $820,000 original principal amount of General Obligation Water Revenue Bonds,
Series 1998C, dated June 1, 1998 (the" 1998 Bonds"). The City has sufficient funds on hand in
the debt service account of the General Obligation Water Revenue Bonds, Series 1998C Fund
(the" 1998 Fund") to call the remaining $105,000 outstanding principal amount of the February
1; 2009 maturity of the 1998 Bonds on February 1, 2008, at a price of par plus accrued interest.
WHEREAS, by Resolution duly adopted on November 22, 1999 (the "1999 Resolution"),
the City issued $4,255,000 original principal amount of General Obligation Bonds, Series
1999A, dated December 1, 1999 (the "1999 Bonds"). The City has sufficient funds on hand in
the debt service account of the General Obligation Bonds, Series 1999A Fund (the "1999 Fund")
to call the remaining $400,000 outstanding principal amount of the February 1, 2009-2010
maturities of the 1999 Bonds on February 1, 2008, at a price of par plus accrued interest.
WHEREAS, by Resolution duly adopted on June 25, 2001 (the "2001 Resolution"), the
City issued $640,000 original principal amount of General Obligation Improvement Bonds,
Series 2001B, dated July 15,2001 (the "2001 Bonds"). The City has sufficient funds on hand in
the debt service account of the General Obligation Improvement Bonds, Series 2001 Fund (the
"2001 Fund") to call the remaining $160,000 outstanding principal amount of the February 1,
2009-2010 maturities of the 2001 Bonds on February 1,2008, at a price of par plus accrued
interest.
NOW, THEREFORE, be it resolved by the City Council of the City of Chanhassen,
Minnesota, as follows:
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1.01 The City Council hereby determines that there exists sufficient funds in the 1998
Fund to prepay on February 1,2008, $105,000 aggregate principal amount of 1998 Bonds
maturing on February 1 of the year 2009, and the interest due thereon.
1.02 The City Council hereby determines that there exists sufficient funds in the 1999
Fund to prepay on February 1,2008, $400,000 aggregate principal amount of 1999 Bonds
maturing on February 1 of the years 2009-2010, and the interest due thereon.
1.03 The City Council hereby determines that there exists sufficient funds in the 2001
Fund to prepay on February 1,2008, $160,000 aggregate principal amount of 2001 Bonds
maturing on February 1 of the years 2009-2010, and the interest due thereon.
1.04 U.S. Bank National Association, in St. Paul, Minnesota, the bank at which
principal and interest on the Bonds are payable, is hereby authorized and directed to cause the
Notices of Call for Redemption attached hereto as Exhibits A, Band C to be given in accordance
with the provisions of the Resolution.
1.05 No further action shall be required of the City Council to complete prepayment of
the Bonds.
The motion for the adoption of the foregoing resolution was duly seconded by Member
, and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
Whereupon the resolution was declared duly passed and adopted.
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STATE OF MINNESOTA
COUNTIES OF CARVER AND HENNEPIN
CITY OF CHANHASSEN
I, the undersigned, being the duly qualified and acting City Manager of the City of
Chanhassen, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached
and foregoing extract of minutes with the original thereof on file in my office, and that the same
is a full, true and complete transcript of the minutes of a meeting of the City Council duly called
and held on the date therein indicated, insofar as such minutes relate to authorizing the call of
certain outstanding General Obligation Bonds of the City.
WITNESS my hand officially on December _,2007.
City Manager
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EXHIBIT A
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 1998C
CITY OF CHANHASSEN,
CARVER AND HENNEPIN COUNTIES, MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council of the City of Chanhassen,
Carver and Hennepin Counties, Minnesota, there have been called for redemption and
prepayment on
February 1, 2008
those outstanding bonds of the City designated General Obligation Water Revenue Bonds, Series
1998C, dated June 1, 1998, having a stated maturity date of 2009 and totaling $105,000 in
principal amount and having the CUSIP number listed below:
Year
CUSIP Number*
2009
The bonds are being called at a price of par plus accrued interest to February 1,2008, on which
date all interest on the bonds will cease to accrue. Holders of the bonds hereby called for
redemption are requested to present their bonds for payment at U.S. Bank National Association
(formerly, Firstar Bank of Minnesota, N.A.), Attention: Paying Agent Services, 60 Livingston
Avenue, St. Paul, Minnesota, 55107.
Dated: December 10, 2007.
BY ORDER OF THE CITY COUNCIL
CITY OF CHANHASSEN, MINNESOTA
/s/ Todd Gerhardt. City Manager
* The City shall not be responsible for the selection of or use of the CUSIP numbers, nor is any
representation made as to their correctness indicated in the notice. They are included solely
for the convenience of the holder.
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A-I
EXHIBIT B
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION BONDS, SERIES 1999A
CITY OF CHANHASSEN,
CARVER AND HENNEPIN COUNTIES, MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council of the City of Chanhassen,
Carver and Hennepin Counties, Minnesota, there have been called for redemption and
prepayment on
February 1, 2008
those outstanding bonds of the City designated General Obligation Bonds, Series 1999A, dated
December 1, 1999, having a stated maturity dates of 2009 and 2010 and totaling $400,000 in
principal amount and having the CUSIP number listed below:
CUSIP Number*
Year
2009
2010
The bonds are being called at a price of par plus accrued interest to February 1, 2008, on which
date all interest on the bonds will cease to accrue. Holders of the bonds hereby called for
redemption are requested to present their bonds for payment at U.S. Bank National Association
(formerly, Firstar Bank of Minnesota, N.A.), Attention: Paying Agent Services, 60 Livingston
Avenue, St. Paul, Minnesota, 55107.
Dated: December 10, 2007.
BY ORDER OF THE CITY COUNCIL
CITY OF CHANHASSEN, MINNESOTA
/s/ Todd Gerhardt, City Manager
* The City shall not be responsible for the selection of or use of the CUSIP numbers, nor is any
representation made as to their correctness indicated in the notice. They are included solely
for the convenience of the holder.
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EXHIBIT C
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2001B
CITY OF CHANHASSEN,
CARVER AND HENNEPIN COUNTIES, MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council of the City of Chanhassen,
Carver and Hennepin Counties, Minnesota, there have been called for redemption and
prepayment on
February 1, 2008
those outstanding bonds of the City designated General Obligation Improvement Bonds, Series
2001B, dated July 15,2001, having a stated maturity dates of 2009 and 2010 and totaling
$160,000 in principal amount and having the CUSIP number listed below:
Year
CUSIP Number*
2009
2010
The bonds are being called at a price of par plus accrued interest to February 1,2008, on which
date all interest on the bonds will cease to accrue. Holders of the bonds hereby called for
redemption are requested to present their bonds for payment at U.S. Bank National Association,
Attn: Paying Agent Services, 60 Livingston Avenue, S1. Paul, Minnesota, 55107.
Dated: December 10, 2007.
BY ORDER OF THE CITY COUNCIL
CITY OF CHANHASSEN, MINNESOTA
/s/ Todd Gerhardt, City Manager
* The City shall not be responsible for the selection of or use of the CUSIP numbers, nor is any
representation made as to their correctness indicated in the notice. They are included solely
for the convenience of the holder.
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