2015 03-17 CC PACKET - Laserfiche WebLink

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OTY OF GEM LAKE,. MN City Hall - 4200 Otter. Lake Road Ge.111n Lake, MST 55110-3763 Telephone. 6$1-747-2790 E-maii Ci : emlakeMN or March 1.3, 2015 To: Gemtake Mayor and City Council From: Tom Kelly, City Treasurer RE: 2007A C.IP Bond Options. The City's 2007A.Capital Improvement Plan (CIP) Bonds are callable (redeemable) -as'of Februa .y .1, 201:6. These bonds funded the construction of Heritage Hall. The pity issued $850,000..00* originally to be paid over 20 years with an:interest rate of 4.4227%. As of March 1, 2015 the City still have bonds outstanding of $745,000.00 with interest payments due February. and August I",.of eech year and principal due each February is'. While the City is paying 4.4227%interest-On-the bonds, the City's investment are:earning only.l.5.96%interest. Since. the. call date on these bond$ is February 1, 2016 the. City has some options for paying these bond available, to them as follows: 1. The -City can issue anew advanced refunding bond. Ehlers has provided the. attached information: .2. The City can wait and refinance at a future date prior to February 42016.or even after the February 1, 20.16 date. 3. The City :can pay off the debt using City reserves. 4. The City can.do nothing and continue paying the existing. debt. The purpose..of this memo. is for the City Council to discuss these four options. Look for us on the World Wide Web at gemlakemn.org