02/21/1985 - City Council Special
MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL
Eagan, Minnesota
February 21, 1985
The special meeting of the Eagan City Council was reconvened on
February 21, 1985, at 7:30 a.m. at the Eagan Municipal Center. Present were
Mayor Blomquist and City Councilmembers Wachter, Egan and Thomas. Absent was
City Councilmember Smith. Also present were Director of Finance VanOverbeke,
City Administrator Hedges and the City's fiscal consulting firm, Miller and
Schroeder Municipals, Inc., represented by Ernie Clark, Steve Emerson and Pat
Wool ridge.
GENERAL OBLIGATION REFUNDING IMPROVEMENT BONDS OF 1985 SERIES A & B SALE
Mr. Emerson appeared and stated that all the tests for eligibility
for both advanced refunding issues were satisfied. He stated that the amount
of the bond sales for Series A and Series B will have to be adjusted in order
to make the refundings viable. The newly adjusted amount for the Series A
bond sale is $3,395,000 and the newly adjusted amount for the Series B bond
sale is $2,090,000.
Mr. Woolridge and Mr. Emerson explained that in both Series A & B
they have been able to lock in a fixed rate of interest which is approximately
two and one-half percentage points less than the interest rates on the
refunded bonds. Further explanation by both Mr. Emerson and Mr. Woolridge
stated that interest rates fluctuate and change from this date, investments
within the two sinking funds will be affected by the rates of investments that
are prevailing during the term of this issue. Mr. Emerson stated that it is
important to understand that a portion of these sinking fund proceeds will
have to be restricted to a rate of approximately 9% interest during the life
of the issue and the arbitrage certificate signed by the City will covenant to
that fact.
It was the recommendation of the fiscal consultants that based on
all the assumptions that have been derived from the City regarding the status
of both the Series A & B General Obligation Improvement bonds that both issues
be refunded and the City accept the award of these bonds. After further
discussion on the matter, and then a motion by City Councilmember Thomas and
seconded by Councilmember Egan with all members voting in favor, the low bid
at a net interest cost of 8.2247% for a $3,395,000 General Obligation
Refunding Bond of 1985 for the Series A Improvement Bonds was awarded to
Norwest.
After further discussion on the matter and then a motion by City
Councilmember Egan and seconded by Councilmember Thomas with all members
voting in favor, the low bid at a net interest cost of 8.5323% for a
$2,090,000 General Obligation Refunding Improvement Bond of 1985 Series B was
awarded to Cronin & Marcotte, Inc.
ADJOURNMENT
There being no further business, the meeting was adjourned at
approximately 8:15 a.m.
Dated: February 21, 1985 TLH
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