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Home My WebLink About6.i. Bond Calls4 ROS tM a EXECUTIVE SUMMARY ' W CITY COUNCIL City Council Meeting Date: October 4, 2011 AGENDA ITEM: Bond Calls AGENDA SECTION: • Consent PREPARED BY: Jeff May, Finance Director AGENDA NO. �• ,,. ATTACHMENTS: Resolution and 2/6/03 Council Action - APPROVED BY: RECOMMENDED ACTION: Motion to approve a Resolution Providing for the Redemption of Certain Outstanding General Obligation Improvement Bonds, Series 2002A and General Obligation Improvement Bonds, Series 2003A. ISSUE ' This item is on the agenda for the City Council to authorize the call of two City general obligation bond issues. BACKGROUND The two bonds being called are listed above in the Recommended Action. They are both G.O. Improvement Bond issues. The City will save almost $15,000 in interest costs by calling the two bond issues early and we will be able to remove an additional $440,000 in principal from our overall debt balance for the year ending December 31, 2012. The calls will occur on February 1s of 2012 and by the end of 2012 the debt will be totally removed from the City's books. SUMMARY Recommend the above motions. The resolution. tonight completes the Council's work in this area. t Also, as referenced in the attached 2/6/03 Council Summary, if there are any surplus funds from these debt issues once the calls take place the funds will be reallocated administratively to other debt service funds. The surplus from the improvement issues will go to another improvement issue. z• 4 r . '1 i r r r F, CITY OF ROSEMOUNT' DAKOTA COUNTY, MINNESOTA RESOLUTION NO. 2011- RESOLUTION PROVIDING FOR THE REDEMPTION OF CERTAIN OUTSTANDING GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2002A AND GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2003A OF „THE CITY BE IT RESOLVED By the City Council of the City of Rosemount, Dakota County, Minnesota, as follows: 1. The City has issued its General Obligation Improvement Bonds, Series 2002A, dated F July 1, 2002 (the "Series 2002A Bonds "). The Series 2002A Bonds maturing on February 1, 2012 and 2013 in the principal amount of $100,000 (the "Series 2002A Callable Bonds "), are subject to redemption and prepayment on any date at a price of par plus accrued interest. 2. The City has issued its General Obligation Improvement Bonds, Series 2003A, dated July 1, 2003 (the "Series 2003A Bonds "). The Series 2003A Bonds maturing on February 1, 2012 through and including 2014, in the aggregate principal amount of $580,000 (the "Series 2003A Callable Bonds "), are subject to redemption and prepayment on any date at a price of par plus accrued interest. 3. It is determined that it is in the sound financial management of the City that'the Series 2002A Callable Bonds and the Series 2003A Callable Bonds, be prepaid and redeemed on December 1, 2011, or such later date for which proper notice of call may be given, and such bonds are hereby called for redemption on such date. , 4. The City Finance Director is authorized and directed to request that U.S. Bank National Association, the paying agent and bond registrar (the "Registrar ") mail the Notices of the Call for Redemption in substantially the forms attached hereto as EXHIBITS A and B to the registered owners of each Bond to be redeemed at the addresses shown on the registration books kept by the Registrar. (The remainder of this page is intentionally left blank.) { 390298v1 MMDRS125 -9 m ;y- ADOPTED this 4th day�of October, 2011. RESOLUTION 2011 Mayor - ATTEST: City Clerk CERTIFICATION I hereby certify that the foregoing is a true and correct copy of a resolution presented to and adopted by the City Council of Rosemount - at a duly authorized meeting thereof, held do the 4th day I f October, 2011, as disclosed by the records of said City in my possession. (SEAL) Rosemount City Clerk { t x 2 F 390298v1 MMD RS 125-9 9 � x � 6 n e� RESOLUTION 2011 - , EXHIBIT A NOTICE OF CALL FOR REDEMPTION GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2002A CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that, by order of the City Council of the City of Rosemount, Dakota County, Minnesota, there have been called for redemption and prepayment on December 1, 2011 all outstanding bonds of the City designated as General Obligation Improvement Bonds, Series 2002A, dated July 1, 2002, having stated maturity dates of February 1 in the years ,2012 and 2013, totaling $100,000 in principal amount: Year of Maturity Amount 2012 $50,000 2013 50,000 The bonds are being called at a price of par plus accrued interest to December 1, 2011, on which date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are requested to,present their bonds for payment at the main office of U.S. Bank National Association, as successor to American Bank National Association, in St. Paul, Minnesota, on or before December 1,,2011. If b3: ma : If by hand U.S. Bank National Association U.S. Bank National Association Corporate Trust Operations Corporate Trust Operations 60 Livingston Avenue 60 Livingston Avenue EP- MN -WS3C 3` Floor Bond Drop Window St. Paul, MN 55107 St. Paul, MN 55107 In compliance with the Interest and Dividend Compliance Act of 1983 and Broker Reporting Requirements, the redeeming institution is required to withhold a `specified percentage of the principal amount of your holdings redeemed unless they are provided with your social security number or federal employer identification number, properly certified. This Compliance should be` fulfilled through the submitting of a W -9 Form which may be obtained at a Bank or other Financial Institution. Dated: October 4, 2011. ' BY ORDER OF THE CITY COUNCIL ` °A -1 390298v1 MMD RS 125 -9 X r. RESOLUTION 2011 - EXHIBIT B NOTICE OF CALL FOR REDEMPTION A A GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2003A CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that, by order of the Cify Council of the City of Rosemount, Dakota County, Minnesota, there have been calledfor redemption and prepayment on December 1, 2011 all outstanding bonds R of the City designated as General Obligation Improvement Bonds; Series 2003A, dated July 1, 2003, having stated maturity dates of February 1 in the years 2012 through 2014, both inclusive, totaling $580,000 in principal amount: Year of Maturity Amount 2012 $190,000 2013 195,000 2014 195,000 The bonds are being called at a price of par plus accrued interest to December 1, 2011, on which date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are requested to present their bonds for- payment at the main office of U.S. Bank National Association, as, successor to Firstar Bank of Minnesota, N.A., in St. Paul, Minnesota, on or before December 1, 2011. w If by If by hand U.S. Bank National Association U.S. Bank National Association Corporate Trust Operations Corporate Trust Operations 60 Livingston Avenue 60 Livingston Avenue EP- MN -WS3C 3` Floor Bond Drop Window St. Paul, MN 55107 St. Paul, MN 551,07 * * * * * * * * * * * * * * ** In compliance with the Interest and Dividend Compliance Act of 1983 and Broker` Reporting Requirements, the redeeming institution is required to withhold a specified percentage of the principal amount of your -holdings redeemed unless they are provided with your' social security M number or federal employer identification number, properly certified. This Compliance should be fulfilled through the submitting of a W -9 Form which may be obtained at a Bank or other Financial' Institution. - Dated: October 4, 2011. 390298v1 MNM RS125 -9 BY ORDER OF THE CITY COUNCIL CITY OF ROSEMOUNT R EXECUTIVE SUMMARY FOR ACTION O V u r CITY COUNCIL MEETING DATE: February 6 „2003 Y .. AGENDA ITEM: Reallocation of Surplus Debt Service Funds AGENDA SECTION: Department -Heads Report PREPARED BY: Jeff May, Finance Director AGENDA NO I'M s ATTACHMENTS: Resolution APPROVED BY: For your'discussion this evening is a resolution drafted by Briggs & Morgan, our bond counsel, that allows °us to use surplus debt service funds once the debt has been 'paid off or defeased. This was brought about because of the-approximate $8,400,000 in bonds that have been called and defeased in the last month. We called 8 bonds and defeased 5 others reducing our debt load and saving hundreds of thousands of dollars in future interest payments.' In order to make all of this work some of the' had deficits and others had surpluses. To make everything balance there will be,, transfers between these funds to balance_things out. Also, some of these.funds will have future, special assessment collections that will add to their surpluses. That is why we have drafted this resolution — to allow us the ability to take these "future” surplus funds and apply them to other outstanding debt issues. In the past, we have had to pass a resolution each time a debt issue is paid off and there is a surplus of funds to reallocate where those surplus funds will be moved to. This resolution allows staff to apply any future surpluses to other debt issues to help them with future payments. I will always inform you of where those funds will be reallocated to but not necessarily with a formal resolution because we will have that on file. w RECOMMENDED ACTION: Motion to adopt a ALLOCATING SURPLUS FUNDS. COUNCIL ACTION: I c -. e a E T CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2003 -07 RESOLUTION ALLOCATING SURPLUS FUNDS WHEREAS, pursuant to a resolution adopted by the City Council on December 3, 2002, the City has , provided for the, redemption and /or defeasance of various general h obligation bonds heretofore issued by the City (the "Defeased Bonds" ).� WHEREAS, the City will continue to receive special assessments which were heretofore levied and pledged to the payment of the Defeased Bond's which, as a result of the red em ption`and`defeasance of the Defeased Bonds, are no longer needed to pay, debt service on the Defeased Bonds; N t WHEREAS, the City has heretofore and may provide for the payment or prepayment in full of various other issues of general obligation bonds at or in advance of their maturity, which payment or prepayment will result in the receipt of special assessment therefore levied and no longer needed to pay debt service on the obligations. WHEREAS, it is desirable that any such funds no Longer needed to pay debt service on general obligation bonds of the City (the "Surplus Funds ") be allocated, from time to time; to the payment of debt service on other outstanding general obligation bonds, heretofore or hereafter issued by the City. NOW THEREFORE, BE IT RESOLVED by the City Council of the,City of Rosemount, Minnesota, as follows: 1. The Finance Director is hereby directed to apply any Surplus'Funds received by the City from time to time to the payment of debt service on general obligation bonds heretofore or hereafter issued by the City. 2`. The Finance Director shall advise the City Council on a periodic basis as to the use of the Surplus Funds. s C�O.p�l ' RESOLUTION 2003 - 07 ADOPTED this 6 day. of February, 2003. r y William H. Droste, Mayor ATTEST: Linda J. Jentink, ity rk CERTIFICATION -� I hereby certify that the foregoing is a true and correct copy of a resolution presented to d and adopted by the City Council of Rosemount a taul y authorized meeting thereof, held on the 6 day of February, 2003, as disclosed by the records of said City in my possession. 9 (SEAL) Linda J. Jentink os ount City Clerk k Motion by:. Riley Seconded by: DeBettignies Voted in Favor: DeBettignies, Shoe - Corrigan', Droste, Riley. Voted Against: None. Members Absent: None 2