E-4. Resolution Authorizing Call and Payment of 2004 G.O. Utility Revenue Bonds9
CITY OF
CHANHASSEN
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
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Finance
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Park & Recreation
Phone: 952.227.1120
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Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
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Planning &
Natural Resources
Phone: 952.227.1130
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Phone: 952.227.1300
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Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Website
www.ci.chanhassen.mn.us
MEMORANDUM
TO: Mayor & City Council Members
FROM: Greg Sticha, Finance Director �,el-
DATE: July 28, 2014 q �_
SUBJ: Approve Resolution Authorizing the Call & Full Payment of
2004B GO Water Revenue Bonds
PROPOSED MOTION
"The City Council approves a resolution authorizing the call and full payment
of the outstanding General Obligation Water Revenue Bonds, Series 2004B."
Approval of this resolution requires a simple majority vote of the City Council.
BACKGROUND
The General Obligation Water Revenue Bonds, Series 2004B were originally
issued in the amount of $7.9 million for the first phase of the water treatment
plant. In 2011, the city refunded $3.5 million in principal payments due in
2019 -2025 with a much better interest rate, resulting in the city saving $200,000
over the life of the bonds. On August 1, 2014, payments for the remaining four
years are callable and the principal totals $1,575,000.
Staff considered refinancing the final four years of payments, which would
result in a $30,000- $40,000 savings for the city. The current interest rate on the
upcoming bond payments is 4.0% - 4.2 %. Instead, staff is recommending
paying off the entire balance, which will result in a $130,000 savings for the
city.
After the city council authorizes the call of the bonds, a written 30 -day notice is
given to bond holders and payment will be made in full in early September.
RECOMMENDATION
Staff recommends that the City Council authorize the call of the outstanding
General Obligation Water Revenue Bonds, Series 2004B.
ATTACHMENTS
1. Resolution Authorizing Call of Outstanding 2004B bonds.
f.\gregs\bonding\2014 bonding \authorize call of 2004b go water rev 7- 28- 14.docx
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE
CITY OF CHANHASSEN, MINNESOTA
HELD: July 28, 2014
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 July
281 2014, at _:_ p.m. for the purpose, in part, of authorizing the call of certain outstanding
General Obligation Water Revenue Bonds, Series 2004B.
The following members were present:
and the following were absent:
Member
introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING THE CALL OF THE OUTSTANDING
GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 2004B
WHEREAS, by Resolution duly adopted on July 12, 2004 (the "Resolution "), the City
issued $7,930,000 original principal amount of General Obligation Water Revenue Bonds, Series
2004B, dated August 10, 2004 (the "Bonds "). The City has sufficient funds on hand in the debt
service account of the General Obligation Water Revenue Bonds, Series 2004B Fund (the "Debt
Service Account ") to call the outstanding Bonds which are the February 1, 2015 through 2018
maturities and are in the principal amount of $1,575,000 (the "Outstanding Bonds ") on
September 3, 2014, 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:
1. The City Council hereby determines that there exists sufficient funds in the Debt
Service Account to prepay on September 3, 2014, the Outstanding Bonds and the interest due
thereon.
2. Bond Trust Services Corporation, in Roseville, Minnesota, is hereby authorized
and directed to cause the Notice of Call for Redemption attached hereto as Exhibit A to be given
in accordance with the provisions of the Resolution.
3. No further action shall be required of the City Council to complete prepayment of
the Bonds.
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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 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 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 the
outstanding General Obligation Water Revenue Bonds, Series 2004B.
WITNESS my hand officially on July 28, 2014.
City Manager
3
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EXHIBIT A
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 2004B
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
September 3, 2014
those outstanding bonds of the City designated General Obligation Water Revenue Bonds, Series
2004B, dated August 10, 2004, having a stated maturity dates in the years 2015 through 2018
and totaling $1,575,000 in principal amount and having CUSIP numbers listed below:
Year CUSIP Number*
2015
159105 3H6
2016
159105 3J2
2017
159105 3K9
2018
159105 3L7
The bonds are being called at a price of par plus accrued interest to September 3, 2014, 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 Bond Trust Services Corporation,
in Roseville, Minnesota.
Dated: July 28, 2014.
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.
A -1
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