HomeMy WebLinkAbout[04f] Early Bond Calls
Council Agenda Item 4f
MEETING DATE: September 5, 2019
AGENDA ITEM: Early Bond Calls
SUBMITTED BY: Finance
BOARD/COMMISSION/COMMITTEE RECOMMENDATION: None
PREVIOUS COUNCIL ACTION: Council approved the 2018 debt management study presented by
Tammy Omdal, Northland Securities bond advisor.
BACKGROUND INFORMATION: The 2011A sewer revenue bonds funded the upgrades to the
Westwood sewer forcemain and lift station. The 2009A funded the refinancing of the sewer capacity
purchase into the St. Cloud Treatment Plant. The 2010 St. Cloud Sewer Note paid for repairs/upgrades to
the phase 3 interceptor system. Both bonds and note are callable. The sewer fund has available cash to
call early. Removing the debts will save the city future interest payments and looks favorable for future
bond ratings.
The 2011A and 2009A bonds will be called through Northland Securities (see attached resolution). The
2010 sewer note will be paid off early to the City of St. Cloud.
BUDGET/FISCAL IMPACT: Interest savings = $4,074
Principal prepayment = $200,000
October 11, 2019 payment ~ $181,839.30
September 26, 2019 payment ~ $20,500.00
ATTACHMENTS: Request for Council Action – Early Bond Calls
Resolution 2019-057 Calling for the Redemption of 2009A & 2011A
Sewer
Revenue Bonds
REQUESTED COUNCIL ACTION: Authorize the Mayor and City Administrator to execute
Resolution 2019-057 calling for the redemption of the outstanding General Obligation Improvement
Bonds, Series 2011A Sewer Portion and 2009A GO Crossover Refunding Bonds. In addition, authorize
the early redemption of the 2010 Sewer Revenue Note with the City of St. Cloud.
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE
CITY OF ST. JOSEPH, MINNESOTA
Held: September 5, 2019
Pursuant to due call and notice thereof, a regular or special meeting of the City Council
of the City of St. Joseph, Stearns County, Minnesota, was duly called to order on September 5,
2019, at 6:00 P.M.
The following members were present:
and the following members were absent:
Member __________ introduced the following resolution and moved its adoption:
RESOLUTION NO. 2019-057
RESOLUTION CALLING FOR THE REDEMPTION OF
A PORTION OF THE OUTSTANDING
GENERAL OBLIGATION CROSSOVER REFUNDING BONDS, SERIES 2009A
AND A PORTION OF THE OUSTANDING
GENERAL OBLIGATION BONDS, SERIES 2011A
WHEREAS:
A. The City Council of the City of St. Joseph, Minnesota issued $3,010,000 General
Obligation Crossover Refunding Bonds, Series 2009A, dated March 1, 2009 (the “2009A
Bonds”); and
B. All of said bonds maturing or subject to mandatory redemption on December 1, 2017
through 2021, inclusive, are subject to redemption, in whole or in part, and prepayment at the
option of the City on December 1, 2016, and on any date thereafter at par plus accrued interest,
all as provided in the resolution of the City authorizing the issuance of said bonds; and
C. The City Council of the City of St. Joseph, Minnesota issued $2,880,000 General
Obligation Bonds, Series 2011A, dated November 1, 2011 (the “2011A Bonds”); and
D. All of said bonds maturing or subject to mandatory redemption on October 1, 2019
through 2021, inclusive, are subject to redemption, in whole or in part, and prepayment at the
option of the City on October 1, 2018, and on any date thereafter at par plus accrued interest, all
as provided in the resolution of the City authorizing the issuance of said bonds; and
E. The City deems it desirable and in the best interest of the City to call $130,000 of the
outstanding 2009A Bonds maturing or subject to mandatory redemption in the years 2019
through 2021, inclusive, for redemption on October 11, 2019, in accordance with said resolution
authorizing the issuance of said bonds; and
F. The City deems it desirable and in the best interest of the City to call $50,000 of the
outstanding 2011A Bonds maturing in the years 2020 and 2021 for redemption on October 11,
2019, in accordance with said resolution authorizing the issuance of said bonds; and
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of
St. Joseph, Minnesota as follows:
1. $130,000 of the General Obligation Crossover Refunding Bonds, Series 2009A, dated
March 1, 2009, of the City of St. Joseph, Minnesota, maturing or subject to mandatory
redemption in the years 2019 through 2021, inclusive, shall be redeemed and prepaid on October
11, 2019, at 100% of their principal amount plus accrued interest for each such bond called.
2. $50,000 of the General Obligation Bonds, Series 2011A, dated November 1, 2011, of
the City of St. Joseph, Minnesota, maturing in the years 2020 and 2021 shall be redeemed and
prepaid on October 11, 2019, at 100% of their principal amount plus accrued interest for each
such bond called.
3. The City Finance Director is hereby authorized and directed to give mailed notice of
the calls to the banks where said bonds are payable and said banks shall provide such notice to
the holders of the bonds as may be required by law. Said notices shall be in substantially the
attached forms.
4. The City Finance Director is hereby authorized and directed to deposit with the banks
where said bonds are payable prior to said call date sufficient funds to pay all principal and
interest due on each bond as of the call date.
The motion for the adoption of the foregoing resolution was duly seconded by member
____________ and upon a vote taken thereon, the following voted in favor thereof:
and the following voted against the same:
Whereupon said resolution was declared duly passed and adopted.
STATE OF MINNESOTA
COUNTY OF STEARNS
CITY OF ST. JOSEPH
I, the undersigned, being the duly qualified and acting City Administrator of the City of
St, Joseph, Stearns County, Minnesota, DO HEREBY CERTIFY, that I have carefully compared
the preceding extract of minutes of a meeting of the City Council of said City held on the date
therein indicated with the original minutes thereof on file in my office and that the same is a full,
true and correct transcript thereof insofar as said minutes relate to the topic described in the title
of the resolution set forth in the extract.
WITNESS my hand officially and the official seal of the City on September 5, 2019.
____________________________________
City Administrator
(SEAL)
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION CROSSOVER REFUNDING BONDS, SERIES 2009A
DATED: MARCH 1, 2009
CITY OF ST. JOSEPH, MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council of the City of St. Joseph, Minnesota,
there have been called for redemption and prepayment on
OCTOBER 11, 2019
a portion of those outstanding bonds of the City designated as General Obligation Crossover Refunding
Bonds, Series 2009A, dated March 1, 2009, maturing or subject to mandatory redemption in the years
2019 through 2021, inclusive, totaling $130,000 in principal amount and with the following CUSIP
number:
Maturity Principal Amount CUSIP
790739TF3
2021* $130,000
*This is a Term Bond with mandatory sinking fund payments in 2019 and 2020. The City will call
$45,000 of the principal subject to redemption in 2019, $45,000 of the principal subject to redemption in
2020 and $40,000 of the principal due in 2021.
The bonds are being called for redemption at a price of 100% of their principal amount plus accrued
interest to October 11, 2019, 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 to Northland Trust
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Services, Inc., 150 South 5 Street, Suite 3300, Minneapolis, Minnesota 55402, on or before October 11,
2019.
Dated: September 5, 2019
BY ORDER OF THE CITY COUNCIL
/s/ Lori Bartlett
City Finance Director
Important Notice: In compliance with the Economic Growth and Tax Relief reconciliation Act of 2001,
federal backup withholding tax will be withheld at the applicable backup withholding rate in effect at the
time of the payment by the redeeming institutions if they are not provided with your social security
number or federal employer identification number, properly certified. This requirement is fulfilled by
submitting a W-9 Form, which may be obtained at a bank or other financial institution.
Additional Information may be obtained from:
NORTHLAND SECURITIES, INC.
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150 South 5 Street, Suite 3300
Minneapolis, Minnesota 55402
Attn: Public Finance
Phone: 612-851-5900 or 800-851-2920
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION BONDS, SERIES 2011A
DATED: NOVEMBER 1, 2011
CITY OF ST. JOSEPH, MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council of the City of St. Joseph, Minnesota,
there have been called for redemption and prepayment on
OCTOBER 11, 2019
a portion of those outstanding bonds of the City designated as General Obligation Bonds, Series 2011A,
dated November 1, 2011, maturing in the years 2020 and 2021, totaling $50,000 in principal amount and
with the following CUSIP numbers:
Maturity Principal Amount CUSIP
790739UX2
2020 $25,000
790739UY0
2021 25,000
The bonds are being called for redemption at a price of 100% of their principal amount plus accrued
interest to October 11, 2019, 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 to Northland Trust
th
Services, Inc., 150 South 5 Street, Suite 3300, Minneapolis, Minnesota 55402, on or before October 11,
2019.
Dated: September 5, 2019
BY ORDER OF THE CITY COUNCIL
/s/ Lori Bartlett
City Finance Director
Important Notice: In compliance with the Economic Growth and Tax Relief reconciliation Act of 2001,
federal backup withholding tax will be withheld at the applicable backup withholding rate in effect at the
time of the payment by the redeeming institutions if they are not provided with your social security
number or federal employer identification number, properly certified. This requirement is fulfilled by
submitting a W-9 Form, which may be obtained at a bank or other financial institution.
Additional Information may be obtained from:
NORTHLAND SECURITIES, INC.
th
150 South 5 Street, Suite 3300
Minneapolis, Minnesota 55402
Attn: Public Finance
Phone: 612-851-5900 or 800-851-2920