2. Water Revenue Refunding Bonds0
CITY OF
CAANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
MEMORANDUM
TO: Mayor and City Council
FROM: Greg Sticha, Finance Director
DATE: June 13, 2011 6��
SUBJ: Resolution Approving the Authorization of the Issuance of
General Obligation Water Revenue Refunding Bonds, Series
2011B
a
PROPOSED MOTION
Staff recommends the City Council adopt the following motion:
"The City Council adopts a Resolution Approving the Authorization of the Issuance
of General Obligation Water Revenue Refunding Bonds, Series 2011 B."
Approval of this item requires a simple majority vote of City Council members
present.
BACKGROUND
Recreation Center
2004B & 2005B Water Revenue Bonds: Staff has been monitoring the 2004B
2310 Coulter Boulevard
& 2005B Water Revenue Bonds for a potential advanced refunding. In
Phone: 952.227.1400
September, the city council authorized the mayor and the finance director to
Fax: 952.227.1404
proceed with an advanced refunding if rates met the 4% net present value
Planning &
savings, as required by the city's debt policy. Over the past nine months, rates
Natural Resources
did not get to a point that would have achieved those savings, but currently they
Phone: 952.227.1130
are approaching amounts that are close to the 4% net present value savings.
Fax: 952.227.1110
This is very similar to the advanced refunding in 2010 for the library bonds.
Public Works
The 2004B & 2005B Water Revenue Bonds were issued for the construction of
7901 Park Place
Phone: 952.22
the water treatment plant and some other smaller water system improvements.
Fax: 952.227.1310
The attached resolution calls for the sale of advanced refunding bonds and
Senior Center
allows the mayor and finance director to execute a bond sale if rates achieve the
Phone: 952.227.1125
net present value savings as required by the city's debt policy. The resolution
Fax: 952.227.1110
authorizes the sale to be conducted within the next calendar year only, and if the
Web Site
required savings are not reached within that time, staff would have to come back
www.ci.chanhassen.mn.us
to the city council and extend the authorization. In addition, if the sale is
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
Mayor & City Council
June 13, 2011
Page 2
conducted, staff will come back to council for affirmation of the results and
ratification of those results.
RECOMMENDATION
Staff recommends that the city council adopt the attached Resolution Approving
the Authorization of the Issuance of General Obligation Water Revenue
Refunding Bonds, Series 2011 B.
ATTACHMENTS:
1. Resolution Approving the Authorization of the Issuance of General
Obligation Water Revenue Refunding Bonds, Series 2011B
f\gregs \bonding\2011 bonding \trigger res memo 2004b & 2005b water rev bonds 6 -13 -1 Ldocx
EXTRACT OF MINUTES OF A MEETING
OF THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA
HELD: Monday June 13, 2011
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Chanhassen, Minnesota, was duly held on Monday, June 13, 2011 at 7:00 p.m.
Member
introduced the following resolution and moved its adoption:
RESOLUTION #
APPROVING THE AUTHORIZATION FOR THE ISSUANCE OF
GENERAL OBLIGATION WATER REVENUE REFUNDING BONDS, SERIES 2011B
BE IT RESOLVED by the City Council of the City of Chanhassen, Minnesota (the
"City") as follows:
The City Council hereby finds and declares that it is necessary and expedient for the City
to sell and issue its fully registered general obligation water revenue refunding bonds in
the total aggregate principal amount of not to exceed $9,150,000 (herein, the "Bonds ").
The proceeds of the Bonds will be used, together with any additional funds of the City
which might be required for crossover refunding of the City's (a) $7,930,000 original
principal amount of General Obligation Water Revenue Bonds, Series 2004B, dated
August 10, 2004, which mature on and after February 1, 2015, and (b) $5,465,000
original principal amount of General Obligation Water Revenue Bonds, Series 2005B,
dated November 16, 2005, which mature on and after February 1, 2014; and (c) pay the
costs associated with issuing the Bonds.
2. The City Council desires to proceed with the sale of the Bonds by solicitation of bids to
be undertaken by Ehlers and Associates, Inc. ( "Ehlers ").
3. The Mayor and the Finance Director are hereby authorized to approve the sale of the
Bonds in an aggregate principal amount of not to exceed $9,150,000 and to execute a
bond purchase agreement for the purchase of the Bonds with the lowest responsible
bidder, provided the present value of the dollar amount of the debt service on the Bonds
computed to their stated maturity dates, after deducting any premium, is lower by at least
4 percent than the present value of the dollar amount of debt service on the refunded
bonds.
4. Upon approval of the sale of the Bonds by the Mayor and the Finance Director, the City
Council will take action at its next regularly scheduled meeting thereafter to adopt the
necessary approving resolutions as prepared by the City's bond counsel.
Ehlers is authorized to prepare an Official Statement related to the sale of the Bonds.
6. If the Mayor and Finance Director have not approved the sale of the bonds and executed
the related documents by one year from the date hereof, this resolution shall expire.
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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 said resolution was declared duly passed and adopted.
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