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Regular City Council Meeting Monday, October 22,2012 Page 11 ing to pay more money upfront in exchange for being able to charge higher coupon rates to bond buyers. Mr. Miller advised that this had no net effect to the City; and that the low bid was at a true interest rate of 2.072%, with a re- duced General Obligation bond issue as indicated at $15,685,000; with the dif- ference made up in premium paid to the City upfront at closing, and was in the best interest of the City from an underwriter's perspective. Springsted Representative Doug Green, the City's Financial Advisor, was present on behalf of Ms. Terrri Heaton, who had a scheduling conflict tonight. Mr. Green advised that the City had actually received eight (8) total bids, but two (2) were non-conforming based on premium bids. When setting the sale originally, Mr. Green advised that they had estimated an interest rate of 2.19%; and expressed enthusiasm that the actual interest rate of the low bidder had been received slightly under that rate, based on daily market changes, coming out in the City's better interest in this instance. While a number of firms had com- bined their bid, Mr. Green noted that the City had actually received interest from thirty (30) underwriting firms, indicating that this was a good reception. Mr. Green advised that the main reason for this large demand was due to the preferred Triple A rating held by the City of Roseville that was very enticing in today's market. In response to Mayor Roe's question regarding the terms of the premium, Mr. Miller confirmed that the City would received additional cash at the closing, re- ducing the total interest paid by the City,reducing the annual principal. Mayor Roe asked that Mr. Miller include this information for the City Council's next budget discussion. Mr. Miller clarified that this would have minimal impact for the 2013 budget, but may have a nominal impact in the 2014 budget,noting that previous Council action had split the impact of the bond issue over two (2) years, and the bonds had been structured accordingly. While allowing for some flexibility for the City Council, Mr. Miller noted that the savings would be built into the overall issue over a fifteen (15) year period. At the request of Councilmember McGehee, Mr. Miller confirmed that the orig- inal $10 million bond issue had received an interest rate of 2.15%, but due to extenuating circumstances and delays,had been finalized at 2.43%. Johnson moved, Pust seconded, adoption of Resolution No. 11020 entitled "Resolution Providing for the Issuance and Sale of$15,685,000 General Obli- gation Bonds, Series 2012A and Levying a Tax for the Payment Thereof;" not- ing that subsequent to bid opening, the issue size decreased from $17,000,000 to $15,685,000 as amended in the draft resolution.