9.b) Staff Report-Prepay 2007 Road Bondnq-� €-,
SCANDIA
Staff RepoVt
Date of Meeting: September 15, 2015
To: City Council
From: Colleen Firkus, Treasurer
Re: Resolution to Prepay 2007 Road Improvement Bond
Background:
As discussed during the budget process, there is a balance in the 2007 Debt Service Fund of
$352,871 with an additional $62,697.50 coming in the December Property Tax Settlement. This
is enough to prepay the 2007 Road Improvement Bond with $32,975 left over. The bond balance
due with interest is $382,593.50. The call date of the bonds is December 1, 2015. The City will
need to give notice to the bond holders within 90 days of the call date that they intend to prepay
the outstanding bonds.
The 2016 proposed budget assumes this prepayment.
Issue:
The City Council needs to pass a resolution to prepay the 2007 Road Improvement Bond.
Proposal Details:
Included in your packet is a resolution to approve prepaying the bond due in 2015 ($375,000)
and interest ($7,593.00) as of December 1, 2015.
Fiscal Impact:
After the December 2015 property tax settlement, the amount left in Fund 307 will be $32,975.
The budget assumes this amount will be transferred to the Local Road Improvement Fund.
Options:
1) Approve Resolution 09-15-15-03
2) Do not approve Resolution 09-15-15-03
Recommendation:
Option 1.