HomeMy WebLinkAbout6.d. Bond Call 4 ROSEMOUNT EXECUTIVE SUMMARY
CITY COUNCIL
City Council Meeting Date: October 2, 2012
AGENDA ITEM: Bond Call AGENDA SECTION:
Consent
PREPARED BY: Jeff May, Finance Director AGENDA NO. to 4.
ATTACHMENTS: Resolution and 2/6/03 Council Action APPROVED BY:
0o1
RECOMMENDED ACTION: Motion to approve a Resolution Providing for the Redemption
of Certain Outstanding General Obligation Water Revenue Bonds, Series 2005C of the
City.
ISSUE
This item is on the agenda for the City Council to authorize the call of one City general obligation bond
issue.
BACKGROUND
The bond being called is listed above in the Recommended Action. It is a G.O. Revenue Bond issue. The
City will save almost$76,000 in interest costs by calling the bond issue early and we will be able to remove
an additional$1,010,000 in principal from our overall debt balance for the year ending December 31,2013.
The call will occur on February 1s`of 2013 and by the end of 2013 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.
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 revenue issue will go to another revenue issue.
CITY OF ROSEMOUNT
DAKOTA COUNTY,MINNESOTA
RESOLUTION NO.
RESOLUTION PROVIDING FOR THE REDEMPTION OF CERTAIN OUTSTANDING
GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 2005C 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 Water Revenue Bonds,Series 2005C,dated
November 1,2005 (the"Series 2005C Bonds"). The Series 2005C Bonds maturing on February 1,
2014 through 2016,both inclusive in the principal amount of$1,010,000 (the"Series 2005C Callable
Bonds"),are subject to redemption and prepayment on any date at a price of par plus accrued interest.
2. It is determined that it is in the sound financial management of the City that the Series
2005C Callable Bonds,be prepaid and redeemed on February 1, 2013,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 Notice of the Call for
Redemption in substantially the form attached hereto as EXHIBIT A 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.)
410486v1 JSB KG400-1
RESOLUTION 2012-
ADOPTED this 2nd day of October, 2012.
William H. Droste,Mayor
ATTEST:
Amy Domeier, 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 on the 2nd
day of October, 2012,as disclosed by the records of said City in my possession.
(SEAL)
Amy Domeier,City Clerk
410486v1 JSB KG400-1 A-1
RESOLUTION 2012-
EXHIBIT A
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 2005C
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
February 1, 2013
all outstanding bonds of the City designated as General Obligation Water Revenue Bonds, Series
2005C, dated November 1, 2005, having stated maturity dates of February 1 in the years 2014
through 2016,both inclusive, totaling$1,010,000 in principal amount:
Year of Maturity Amount
2014 $325,000
2015 335,000
2016 350,000
The bonds are being called at a price of par plus accrued interest to February 1,2013, 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 February 1,2013.
If by mail: 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 3rd 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 2,2012.
BY ORDER OF THE CITY COUNCIL
410486v1 JSB KG400-1 A-2
CITY OF ROSEMOUNT PY EXECUTIVE SUMMARY FOR ACTION O CITY COUNCIL MEETING DATE: February 6, 2003
AGENDA ITEM: Reallocation of Surplus Debt Service Funds AGENDA SECTION:
Department Heads Report
PREPARED BY: Jeff May, Finance Director AGENDA
A 5 ,A
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 funds 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.
RECOMMENDED ACTION: Motion to adopt a RESOLUTION ALLOCATING SURPLUS FUNDS.
COUNCIL ACTION:
o py
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
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 Bonds which, as a result
of the redemption and defeasance of the Defeased Bonds, are no longer needed to pay
debt service on the Defeased Bonds.
WHEREAS, the City has heretofore and may hereafter 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.
copy
RESOLUTION 2003 - 07
ADOPTED this 6th day of February, 2003.
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
and adopted by the City Council of Rosemount at a duly authorized meeting thereof,
held on the 6th day of February,2003, as disclosed by the records of said City in my
possession.
(SEAL )
Linda J. Jentink os;, ' ount City Clerk
Motion by: Riley Seconded by: DeBettignies
Voted in Favor: DeBettignies , Shoe-Corrigan, Droste, Riley.
Voted Against: None.
Members Absent: None.
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