2004-02-11 CC Meeting - Laserfiche WebLink

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NORTHLAND 'SECURITI ES 45 South 7" Street Suite 2500 Minneapolis, MN 55402 (800) 851-2920 (612) 851-5906 Fox (612) 851-5917 E X T ERN A L MEMORANDUM DATE: February 5, 2004 TO: The Honorable Terry Sweeney and Members of the City Council Ms. Kim Moore-Sykes, Administrator Ms. Ellen Paulseth, Finance Director City of Centerville FROM: George Eilertson, Vice President, Partner Cf- Northland Securities RE: Council Agenda Items: 1) Hunters Crossing Phase 2 Bond 2) Call Notice for G.O. Water Revenue Bonds, Series 1996 Following is a description of the two public finance related agenda items for the February 11 th Council meeting: Hunters Crossin!! Phase 2 Bond Issue - (see attached) Two agenda items relate to the Hunters Crossing Phase 2 Bonds (see attached). I) Financial Advisory Agreement - First, we recommend the City retain Northland Securities as the Financial Advisor for the project. The attached Financial Advisory Agreement outlines Northland's pre bond sale and post bond sale duties as well as our compensation. 2) Set Sale Resolution - The Set Sale Resolution sets a bond sale date of March 10th at 11:00 AM. Call Notice for G.O. Water Revenue Bonds, Series 1996 - (see attached) 1) Call Notice - In order to payoff the 1996 Bonds, the City must adopt a Call Notice, The Notice states your intent to payoff the remaining principal and any accrued interest. Adoption of the Call Notice is necessary so the Paying Agent can notifY the holders (investors) of the Bonds that the City intends to pre-pay. The notice to the bondholders can take up to 45 days. The Notice states that the City will payoff the remaining principal ($190,000) and any accrued interest due on April 1,2004. The City will save approximately $24,060 in future interest costs plus four years of Paying Agent fees (approx. $1,400) by paying off the 1996 Bonds early. Do not hesitate to call me at (612) 851-5906 with any questions. Thank you.