CR 93-167 Auth Sale Of Bonds
. ,; ('\
_ _ i '\ Y I
'\ 0
i (; ,L:o I
~.
.y '" I
. September 30, 1993 0 P K \ ~ )
Proposed Action.
Staff recommends adoption of the following motion: Move that Resolution #93-106 uResolution
Providing for the Issuance and Sale of $8.725,000 General Obligation Refunding Bonds of 1993 ". be
adopted.
Overview.
The opinion of the City's bond counsel is that the sale of refunding bonds within the next month will
capture the best interest rates that may be available in the foreseeable future. I agree with their analysis.
The refunding will cancel all bonds issued in 1988, 1989 and 1990 except for the P.I.R. series of the 1990
bonds.
Debt payments of $14,924,222 under the refunding plan will cancel today's debt obligation of
$15,622,762on the three issues for a net savings to the City of approximately $700,000.
Bids on the bonds are scheduled to be taken on October 19, 1993, and to be considered by the Council at
." 7:30 PM the same day.
The bond market for municipals is very favorable at this time. Early coupons are expected to be below
2.5% with net interest costs below 5% for the life of the bonds.
Bonds will not be callable and all will mature by February 1,2011.
Primary Issues To Consider.
o The Cityis interest cost savings exceeds the guideline percentage of 5% on the refunding bonds
par amount.
o Savings realized will be for:
Park Bonds - Levy decrease $163,000
Storm Sewer - Debt service decrease $190,000
Redevelopment Bonds - TIF funds use decreases $347,000
Supportin2 Information.
o Resolution 93-106.
o Preliminary analysis.
~
-
,. )
. Staff requested the City bond counsel, Evensen Dodge, Inc., to review the City's current
outstanding bonds.
Their analysis concludes that the current bond market would allow the City to refund three bond
issu~s and produce an approximate interest cost savings of $700,000.
Bond Refunding Proposal
October, 1993 Issue:
Series A $7,585,000
Series B 1. 140.000
$8,725,000
Bonds March, 1990 (Except PIR portion) $3,150,000
Bonds December, 1989 3,585,000
Bonds May, 1988 1.015.000
$7,750,000 '
Increase Bonds outstanding after callable dates $ 975,000
.~ Calendar: (Council action)
October 5, 1993 ' Adopt resolution to authorize sale of bonds.
October 19, 1993 Adopt resolution to award bids.
The interest cost savings are, realized' after the increased outstanding bonds are netted out of the
interest reduction (see attached net savings analysis by called issue). *
*Savings on both of the new series A and B exceed the standard 5% of refunded par amount
(9.53% and 5.61% respectively).
If these issues are refunded now, then no further refunding can occur on these three issues. The
current law allows only one refunding on issues sold after 1986, but two refundings may occur on
issues sold prior to 1986. Part of the 1990 issue was a refunding of 1984 redevelopment bonds
and the 1993 refunding would end the refunding allowability on the 1984 issue. I do not see these
restrictions as a problem. It is doubtful interest rates would fall low enough to ever reach the
standard "savings of5% of refunded par amount".
.
-
-
.
. Extract of Minutes of Meeting
of the City Councl1of the City
of Hopkins, Hennepin County, Minnesota
Pursuant to due call and notice thereof a regular meeting of the City Council
of the City of Hopkins, Hennepin Cqunty, Minnesota, was held at the City Hall in the
City On Tuesday, October 5, 1993, commencing at 7:30 P.M.
The following members of the Councl1 were present:
and the following were absent:
... ... ....
The followini" written resolution was presented by Councl1member
. who moved its adoption the readIng, of whioh had been dispensed with by unanimous
consent:
RESOLUTION PROVIDING FOR THE ISSUANCE AND
SALE OF GENERAL OBLIGATION REFUNDING BONDS,
SERIES 1993A, SERIES 1993B, SERIES 1993C AND SERIES 1993D
BE IT RESOLVED by the City Council of the City of Hopkins, Hennepin
, ' , .
County, Minnesota (City) as follows:
1- It is determined that:
(a) The City is authorized by the provisions of Minnesota Statutes,
Chapter 475 (Act) and Seotion 475.67, Subdivisions 4 through 12 of the Act
to issue and se11its general obligation bonds to refund outstanding bonds
when determined by the City Council to be necessary and desirable for the
reduction of debt service or.1nterest cost and the adjustment of maturities of
outstanding issues of bonds.
(b) It is necessary, and desirable for the reduction of interest cost
- and the adjustment of maturities of bonds that the City issue: General
Obligation Redevelopment Refunding Bonds, Series 1993A (Series 1993A
- Bonds); General Obligation Storm Sewer Revenue Refunding Bonds, Series
1993B (Series 1993B Bonds); General ObI1gation Redevelopment Refunding
"
. Bonds, Series lS93C (Series 1993C Bonds); and General Obligation Park and
Recreation Facilities Refunding Bonds, Series 1993D (Series 1993D Bonds)
(collectively, the Series 1993 Bonds) to refund in advance of maturity certain
outstanding general obligations of the City.
(c) The outstandini' bonds to be refunded by the Series 1993 Bonds
are 8S follows:
$2,14S,000 General Obligation Redevelopment Bonds, Series 1988A,
dated , 1988, outstanding maturities of which are to be
refunded by the Series 1993A Bonds;
$2,790,000 General Obligation Storm Sewer Revenue Bonds, Series
1989, dated December 1, 1989, outstanding maturities of which are to
be refunded by the Series 1993B Bonds;
$1,390,000 General Obligation Redevelopment Bonds, Series 1989 ~ dated,
December 1, 1989 and $1,330,000 General Obligation Redevelopment
RefuncUng Bonds, Series 1990, dated March 1, 1990, outstanding
maturities of which are to be refunded by the Series 1995e Bonds; and
$2,805,000 General, Obligation Park and Recreation Facilities Bonds,
Series 1990, dated March III 1990, outstandin" maturities of which are
to be refunded by the Series 1993D Bonds;'
~ 2. Evensen Dodge, Inc. Is authorized and directed to nei'Otiate the terms
. of sale of the Series 1993 Bonds, including the principal amount of each series
thel"eof. The City Council will meet at 7:30 p.m. on October 19,1993, to consider
proposals on the Series 1993 Bonds and take other appropriate action with respect
to the Series 1993 Bonds .
The motion for the adoption of the foregoing resolution was dUly seconded by
, and upon vote being taken thereon the following
members voted in favor of the motion:
and the following voted against:
whereupon the resolution was declared duly passed and adopted.
.
.
STA TE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF HOPKINS
. I, the unders1gned_ being the duly quallfied and acting City Clerk of the City
of Hopkins, Minnesota, hereby certify that I have carefully compared the attacbed
and foregoing extraot of minutes of a re~lar meetin~ of the City Council of the C~ty
the extract is a full, true and correct copy of the minutes, insofar as they relate to
..... the issuance and sale of GeneralObligation R.efunding Bonds J Series 1993A) Series
.
1993B, Series 1993C and Series 1993D of the City.
WITNESS My hand as City Clerk and the corporate Beal of the City this _
day of
City Clerk '
City of Hopkins, Minnesota
(SEAL)
.. ^ , .
A
~
~8~~~~88~ggg88~888 ~
CCLri"':N(\j"':~O"':~ . . " " . . . .
~~ij_hCC ~cc ~~~~h~~~ q:
o <q'Cl)C) C\I-hCOh'ltCl)~g~Cl)
. - ,~~ t~ t! ~ g ~ i11! ~ a ~ ~ ~ ~
->
~
Q)
a:
~
O'l
.....
......
."-"'~ Ol ~ a 8 8 8 8 8 8 8 8 g 8 8 888
.S; a? V
"0 ~ C\I gogocid!ri1ti. .~1ti . .
c: ~ ~ C\I co C) ~ ~ ; :g,;:: ~ ~ h lr; * ~
IO~ ~
ma: I ~mooci"':cD":~~O)oo":ocD
~~ ..-.............(1)(1) ~.........Ifl....1fl
ffi~ U)(I)tltlfl Ifllfl W
CI),.... N"':
g t:: ~ g ~ ~ ~ ~.~ & ~ ~ ~ ~ Si' ~ ~ g ~
a:: ~~
C(S
en ~*~~S;~a~~t:~N~~&;S;S;~
~~ U},..: I(),..- lOol1lccC\llt)COCCOl
me.. I I cio~h~O)cDo)":g":~g.,..:~o":
~~ ..---Ifl IflIflWU) (I) ....-Ifl
-0 tltlfllfl ' Ifl Ifl
ffil5l
CI)- NcO
C
~ ~ NO..........~,.........-.
-o~ ~ *~ ~q~~~~~~
v 0 g ",ool()o~g~
--d \~ ~ ~ .^"_ ,....CC~~IO ,
., , --CQ <q' .......-
~ (f.) E i i,' N"N.N' N' <'i ,..: N ....:.~ .c::
- LU- 'OJ? ~,/ w (I) !2~~~W w , ~
'~ ~ ~ffi $ I() --,.
<q'
.. 'rCl) ..... N<O .!!
y- .Q
C! ..- ~
II> N' 'Cij
E Q) III ~
0- 1()~~~~0000gooo~8O I() U Olm <C~
0 ~~ N ~=
Q) ~ NNC'iI~lQlI'llQ .lI'lll'lll'l .q
a; CQh C\I~hC\lhh~""'OO ...: .cO ClfJ'i
\l)lOccfZ8:~O l()o~l8 CCOgj C\I, o~
CQ"o <6td OCX)... ,...,..CQ<q'... C\lCQ- "l 0
Cl)Q) I I ~o)oocircD":":":~~.O)cio o ,....- It)~
UJcr: 1fl.................IflIflIflW Ifl Ifl......- ~ .~%
-0) ~~ (I) (I,H,lt Ifl ' U) fit ~~
ffi~ .Qc: C\j ,C"(l
CIJ..- NeD ~ 's,. ~~
Q)... ,... Cl)
!ilia" 11)"0
.clll ,~ ~
.Q .-
~iggi~88ggii88ggg .c.... ~~
* 'R. q~3:gj
.... ~2 'j,"':"':~"':C\lLrigC'ilN"':l\i:gdtri"':~ C\I II) .- ~E
Q) ....'If" <q'0'l~ ~co~ ll'lCll.... <q' 1ii~
C\I :l: !ricO ~~~~q~.~"l~.~~~~q_ ,.... 0 '- .....
CI)(}) I I oCQC'lo..-C'lCQ....C'lC\lOC\lCll...N'lf"O) 0; 0 .- 'tj ~
~~~~~0~~~'~~r~-~~~. co 3:Q) ~.Q
UJ *-,p. V>fIt (1')(1) U)1fl (l)fltlfl W(/)fIt ... 0 :::l
- 0) Ifl ~ '0 'o;;~
- ffi~ ~~ .1Il e~
'1-, CI),- C\l1O '01::
- C/) t::
(I) ~ E Cl),2
0) c ~ e
c:: Q) 1Il~
":; E <::t~ C/) Cl)
a. ~o888g88gg
CIS 0 ~ ...."[ ~.Q
(J) Qi ~~ .~ . " . . . . . . Lri , Q) 'a
IU ~ ~~~:e*gg~~~ Q;) ':':c: C/) 0
!l).....
to) --g ~,..:. ......,..cc COcr.l co O'l l'6 .- ~o
z'~ (I) I I :i~ggmfi~~~g g EO.
~a: ~~ Ifl c::;C: !{;
::E_ ~ .~ a:: co o Q)
.c:
w~ i~ ~ ~
(1)"'- CI).... C\l<o
c:::.o co V>2lll
:i~~ Q I-lJ ~ 113 ~
- g>~
Cl. '0 ~ -..J -Q)1Il
o Cl) 0 g ~ ill e .~ fll
:I:1t1- 0 ~ 41 III Q) ~:
_ LL.. Q) U)~:3
oE..r: >- .- ~ i; ,Cl)
>-.- 1Il M ~~~.....COo)O....Ncr.l~~~hCCo)O... ~ ~ Q) .... ;::
~tico 81 ~8lm8888 888~~o luCIJoc. .~ ~
UWo ....,.......,...,...,..C\lNNNNNC\lC\lN N ~Sg