Laserfiche WebLink
<br />tit <br /> <br />. <br /> <br />. <br /> <br />~ <br />~~HILLS <br /> <br />MEMORANDUM <br /> <br />DATE: <br /> <br />Agenda Item 2.B <br /> <br />April 12,2004 <br /> <br />TO: Honorable Mayor and City Council <br /> <br />FROM: Murtuza Siddiqui, Finance Director/Treasurer """~ <br /> <br />SUBJECT: Bond Refunding <br /> <br />BACKGROUND: <br /> <br />In 1998, the City of Arden Hills issued $3,100,000 in General Obligation Tax Increment Bonds, <br />Series 1998A. The bonds were issued for the purpose of financing for relocated 14th street <br />improvements and Round Lake Road/Highway 96 intersection improvements in Tax Increment <br />District NO.2. <br /> <br />DISCUSSION: <br /> <br />The above referenced bond carries an average interest cost of approximately 4.6%. With today' s <br />low interest rates, refunding the existing bonds and replacing it with a lower interest bearing <br />bonds, the City can realize a net cost savings in excess of $1 00,000 over the remaining life of the <br />bonds. <br /> <br />Mark Ruff of Ehlers & Associates, Inc, will make a presentation, outlining the benefits of <br />refunding at this Work Session, Please see the attachments from Ehlers & Associates, Inc. <br /> <br />RECOMMENDED ACTION: <br /> <br />Staffrecommends that the Council consider the option of refunding Bond Series 1998A. <br />