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February 28,2012 Page 3 of 5 10.Consideration of 4 Ayes,0 Nays-Motion Carried an amendment to the 2012 Fee Register, Report No. 12-054. Public Hearing 11.Consideration of None Resolution appointing Paul Zisla as Chairperson of the Council Business EDC Commission 1. Consideration of Resolution Providing for the Sale of$2,705,000 General Obligation Bonds, Report No. 12-055. Series 2012A.Report No. 12-056. Resolution No. 12-019. Resolution No. 12- 018. Finance Director Dan Maiers reported that the portion of the 2012A Bond issue to finance the 2011 Public Hearing Street Reconstruction Improvement Project will be$455,000. A second portion is to refinance None the 2004A G.O. Tax Increment Bonds will for$1,770,000. The remaining $480,000 of the Council Business 2012A Bonds will refinance the 2004C G.O. Improvement Bonds. These bonds were 1. Considera6onof originally issued to finance the 2003 and 2004 Street Reconstruction improvement projects. Resolution Providing for thThe Bonds will be sold on a competitive basis. The Bonds will begeneral obligations of the General eralale Oofligati$2,705,000 p g Gerreral Obligation Bonds City. The resolution establishes Tuesday, March 27, 2012, as the date the City Council will saies2012A. consider awarding the sale of the bonds. Report No.12-056. Councilmember Bauman questioned why the bonds being refinanced are being consolidated. Resolution No.lz-0t9. 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. 2. Consideration of Resolution Providing for $1,06Finance Director Dan Maiers reported that the 2012B Bonds are to finance the advance refunding of the sate of Taxable Genneraleral ,000 the 2004B Taxable G.O. Tax Increment Bonds. Obligation Tax Increment The current average interest rate for the 2004B Bonds is 5.0%. The anticipated interest rate for Refimdu,gBonds series the 2012B Bonds is estimated to be average about 1.5%. The projected savings as a result of RepOi . g g Report No.12-057. refinancing the bonds are approximately$64,400 net of all fees and expenses. Resolution No.12-020. 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.