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D-6. 2009A General Obligation Bonds7700 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 Recreation Center 2310 Coulter Boulevard Phone: 952.227.1400 Fax: 952.227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax: 952.227.1110 Public Works 7901 Park Place Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Website wwaci.chanhasse n. m n.us 1)-�0 MEMORANDUM TO: Mayor & City Council FROM: Greg Sticha, Finance Director DATE: June 27, 2016 alk/ SUBJ: Resolution Authorizing Early Redemption of 2009A GO Bonds PROPOSED MOTION: "The City Council approves a resolution authorizing early redemption of the 2009A General Obligation Bonds." Approval of this item requires a simple majority vote of the City Council. BACKGROUND The 2009A General Obligation Bonds were an issue that refinanced the 2005 MUSA State Financing Bonds for improvements in an around the newly constructed Highway 212. There is currently enough cash in the debt service fund to make the final principal payment of $590,000. The early payment will save the city approximately $8,000 in interest cost. RECOMMENDATION Staff recommends that the City Council approve the attached resolution authorizing early redemption of the 2009A General Obligation Bonds. ATTACHMENTS 1. Resolution. F:\gregs\councin2016\2009a go early redemption memo.docx Chanhassen is a Community for Life - Providing for Todayand Planning forTomorrow EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA HELD: June 27, 2016 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 June 27, 2016, at 7:00 p.m. for the purpose, in part, of authorizing the call of certain outstanding General Obligation Improvement Refunding Bonds, Series 2009A. 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 IMPROVEMENT REFUNDING BONDS, SERIES 2009A WHEREAS, by Resolution duly adopted on May 11, 2009 (the "Resolution"), the City issued $6,020,000 original principal amount of General Obligation Improvement Refunding Bonds, Series 2009A, dated June 3, 2009 (the 'Bonds"). The City has sufficient funds on hand in the debt service account of the General Obligation Improvement Refunding Bonds, Series 2009A Fund (the "Debt Service Account") to call the remaining $590,000 outstanding principal amount of the February 1, 2017 maturity of the Bonds on August 1, 2016, 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 August 1, 2016, 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. 7757580v1 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. 2 ns7ssovi 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 Improvement Refunding Bonds, Series 2009A. WITNESS my hand officially on June 27, 2016. City Manager 7757580v1 EXHIBIT A NOTICE OF CALL FOR REDEMPTION GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 2009A 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 August 1, 2016 those outstanding bonds of the City designated General Obligation Improvement Refunding Bonds, Series 2009A, dated June 3, 2009, having a stated maturity date in the year 2017 and totaling $590,000 in principal amount and having the CUSIP number listed below: Year CUSIP Number* 2017 159105 7135 The bonds are being called at a price of par plus accrued interest to August 1, 2016, 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: June 27, 2016. 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 number, nor is any representation made as to its correctness indicated in the notice. It is included solely for the convenience of the holder. FEW 7757580v1