7B, Northwestern College Conduit Debt Interest Rate Mode Change

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� EN H�I.LS MEMORANDUM DATE: Se�tember 12, 2011 TO: Hanorable Mayor ar�d City Counciimembers Patrick Klaers, City Administratar FROM: Sue Iverson, Director of Finance and Administrative Sexvices SUBJECT: Northwestern College Conduit Debt I�terest Rate Mode Change Back�round In Navember 2010, the Ciiy issued Bonds far the benefit of Northweste� College to iinance a portion of �he casts of constructing and equippi�g the student center. The bonds were originally issued in a shart-term �xed i�ierest rate mode and privately placed with M&I Marshall & Ilsley Bank. The Project has been completed and Northwestern College would like to convert the zntexest rate on the bonds to a variable rate of interest that resets on a weekly basis. Discussion Far ta�c purpos�s this will cause a refunding of the current bond issue and a"reissuance" of the bonds but it �vill not affect the City's ability to issue debt in this caiendar year nor will it have az�y affect on the Presbyterian Homes Conduit deb� issue. The Ciry Cauncil is asked to approve the interest rate rnode c�ange and the xeoffering of the bonds to the public. Attached is a letter from the City's bond counsel, Julie Eddington, Kennedy & Graven, and she will also be in attendance at ihe Council zz►eeting to answer any questions. A represeniaiive from Narth�c�vestern College, Doug Schraeder, wil� also be present to answer any questions abaut the project. Counci� Action Requested A motion to approve Resolution 201 �-044, a resolution appraving the conversion of the Ciry's adjustable rate revenue bonds (Northwestern College Project), Series 2010, to a variable rate mode; and appraving and authorizing the executian and delivery of doc�ments related thereto. City Council Meeting P:IAdminlCouncillAgendas & Packet Information120111Nothwestern Co�lege Conduit Debit Made Change.doc Page i of 1