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February 28, 4 Ayes, 0 Nays - Motion Carried Public Hearing None Council Business I. Consideration of Resolution Providing for the Sale of $2,705,000 General Obligation Bonds, Series 2012A. Report No. 12-056. Resolution No. 12-019. Finance Director Dan Maiers reported that the portion of the 2012A Bond issue to finance the 2011 Street Reconstruction Improvement Project will be $455,000. A second portion is to refinance the 2004A G.O. Tax Increment Bonds will for $1,770,000. The remaining $480,000 of the 2012A Bonds will refinance the 2004C G.O. Improvement Bonds. These bonds were originally issued to finance the 2003 and 2004 Street Reconstruction improvement projects. The Bonds will be sold on a competitive basis. The Bonds will be general obligations of the City. The resolution establishes Tuesday, March 27, 2012, as the date the City Council will consider awarding the sale of the bonds. Councilmember Bauman questioned why the bonds being refinanced are being consolidated. Director Maiers reported that bonds are more marketable in a larger amount; noting that the term will not be extended. Councilmember Samuelson noted total savings would be approximately $73,000; dependant in bids. Director Maiers commented that the current market is ideal for refinancing. Motion by Councilmember Samuelson, seconded by Councilmember Jacobsen to waive the reading and adopt the RESOLUTION PROVIDING FOR THE SALE OF $2,705,000 GENERAL OBLIGATION BONDS, SERIES 2012A. 4 Ayes, 0 Nays -Motion Carried 2. Consideration of Resolution Providing for the Sale of $1,065,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2012B.. Report No. 12-057. Resolution No. 12-020. Finance Director Dan Maiecsreported that the 2012B Bonds are to finance the advance refunding of the 2004B Taxable G.O. Tax Increment Bonds. The current average interest rate for the 2004B Bonds is 5.0%. The anticipated interest rate for the 2012B Bonds is estimated to be average about 1.5%. The projected savings as a result of refinancing the bonds are approximately $64,400 net of all fees and expenses. Councilmember Bauman questioned if the terms are changed, noting the call date is February 1, 2017, not February 1, 2013. Director Maiers reported you can advance refund a bond once. The new bond would not be 'very marketable with a call date of less than one year, however the terms and payments are unchanged. Councilmember Bauman asked why principal is not being paid the first year. Director Maiers responded that he would look into the structure. It was clarified that tonight's approval authorizes the advertisement for bids, and the awarding of the bids will be March 27, 2012. Page 3 of 5 10. Consideration of an amendment to the 2012 Fee Register, Report No. 12-054. 11. Consideration of Resolution appointing Paul Zisla as Chairperson of the EDC Commission Report No. 12-055. Resolution No. 12- 018. Public Hearin None Council Business 1. Cansidmbotof Resolution Rovid'ing far the Saleof$Z705,000 Ganoal Obligation Bonds, Saits2012A Rgxd No. 12-056. Resolutim No. 12-019. 2 Carsiduauon of ResohIDmProvidingfor the Saleof$1,065,000 TwmbleGanaal Obligation Tax Increment Rdxd ng Bandl Series 2012B.. RepatNo.12-057. Resolution No 12420.