HomeMy WebLinkAbout[05] Bond Call O Council Agenda Item 5
CITY OF ST.JOSEPH g
MEETING DATE: August 6,2018
AGENDA ITEM: Early Bond Call
SUBMITTED BY: Finance
BOARD/COMMISSION/COMMITTEE RECOMMENDATION: None
PREVIOUS COUNCIL ACTION: Council issued the 2011A General Obligation Capital
Improvement Bonds for roof repairs and city hall mechanical upgrades. Council approved the 2017 debt
management study presented by Tammy Omdal,Northland Securities bond advisor.
BACKGROUND INFORMATION: The 2011A CIP bonds partially funded repairs to the police
garage,now rented by Bad Habit Brewing. Statutes do not allow the change from governmental use to
commercial since the original bond documents do not state there would be commercial use in the
building. With the change in use,the bond requires calling the bonds early. The first call date is October
1, 2018. The additional principal to pay off these bonds early is available in the debt service reserve fund.
The early call will free up$23,000 in debt levy and save$2,720 in interest payments.
BUDGET/FISCAL IMPACT: Interest savings=$2,720
Principal prepayment= $60,000
October 1,2018 payment=$81,720
ATTACHMENTS: Request for Council Action—Early Bond Call
Resolution 2018-034 Authorizing the call of a portion of the outstanding
General Obligation Bonds, Series 2011A
REQUESTED COUNCIL ACTION: Authorize Resolution 2018-034 calling for the redemption of the
outstanding General Obligation Improvement Bonds, Series 201 1A.
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE
CITY OF ST. JOSEPH, MINNESOTA
HELD: AUGUST 6, 2018
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of St. Joseph, Stearns County, Minnesota, was duly held at City Hall on August 6, 2018, at 6:00
p.m. for the purpose, in part, of authorizing the call of certain outstanding General Obligation
Bonds, Series 2011A.
The following members were present:
and the following were absent:
Member introduced the following resolution and moved its adoption:
RESOLUTION 2018-034 AUTHORIZING THE CALL OF A PORTION OF THE
OUTSTANDING GENERAL OBLIGATION BONDS, SERIES 2011A
WHEREAS, by Resolution duly adopted on October 6, 2001 (the "Resolution"), the City
issued $2,280,000 original principal amount of General Obligation Bonds, Series 2011A, dated
November 1, 2011 (the "Bonds"). The City determines to call the$60,000 principal amount of
the Bonds that were designated as the CIP Portion of the Bonds with 2019 through 2021
maturities(the "Outstanding CIP Portion of the Bonds") on October 1, 2018, at a price of par
plus accrued interest.
NOW,THEREFORE,be it resolved by the City Council of the City of St. Joseph,
Minnesota, as follows:
1. The City Council hereby determines to prepay on October 1, 2018,the
Outstanding CIP Portion of the Bonds and the interest due thereon.
2. Northland Trust Services, Inc., in Minneapolis, Minnesota,the Bond Registrar at
which the principal and interest on the Bonds are payable, 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.
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
COUNTY OF STEARNS
CITY OF ST. JOSEPH
I, the undersigned,being the duly qualified and acting Administrator-Clerk of the City of
St. Joseph, 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 a
portion of its General Obligation Bonds, Series 2011A.
WITNESS my hand officially on August 6, 2018.
Administrator-Clerk
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EXHIBIT A
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION BONDS, SERIES 2011A
CITY OF ST. JOSEPH, STEARNS COUNTY, MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council of the City of St. Joseph,
Stearns County,Minnesota,there have been called for redemption and prepayment on
October 1, 2018
those outstanding bonds of the City designated as the "CIP Portion" of the General Obligation
Bonds, Series 2011A, dated November 1, 2011,having stated maturity dates in the years 2019
through 2021 and totaling $60,000 in principal amount and having CUSIP numbers listed below:
Year Maturity Amount CUSIP Number
2019* $220,000 790739 UW4
2020** $220,000 790739 UX2
2021*** $230,000 790739 UYO
The bonds are being called at a price of par plus accrued interest to October 1, 2018, 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 Northland Trust Services, Inc.,
150 South 5th Street, Suite 3300,Minneapolis,Minnesota 55402.
Dated: August 6, 2018.
BY ORDER OF THE CITY COUNCIL
CITY OF ST. JOSEPH, MINNESOTA
/s/Judy Weyrens,Administrator-Clerk
The City shall not be responsible for the selection of or use of the CUSIP number, nor is any
representation made as to their correctness indicated in the notice. They are included solely for
the convenience of the holder.
* Partial Call in the aggregate principal amount of$20,000 of this maturity.
** Partial Call in the aggregate principal amount of$20,000 of this maturity.
***Partial Call in the aggregate principal amount of$20,000 of this maturity.
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