08-18-04 WSi
ITEM 4_7
MEMO
Date: October 6, 2004
To: Mayor & Council
From: City Administrator Mike Robertson
Re: Proposed Early Payment of 1998 and
1999 Sewer & Water Bonds
We are approaching the call date for the 1998 and 1999
Sewer &Water bonds. The 1998 bond is $5,000,000 and
the 1999 bond is $2,095,000. The Council borrowed the
amount in two bonds so as not to deal with the greater
restrictions that are placed on bonds over $5,000,000
and because it did not know what its final construction
costs would be in 1998. Payments on these bonds were
made from the sewer and water hookup fees that
developers had to pay in order to build in Otsego.
.1
Payments were scheduled to run for 20 years, but there
was a provision in the bonds that they could be called
(paid early) in 2004. Because development came much
faster than anyone expected, there is a surplus in this
account, which the City can use to pay the bonds off
early in December. Paying the bonds off early will
save the City $2,975,181 in future interest payments.
At this point we have $7,510,071 in the Sewer & Water
Bond Fund. $6,815,920 is required to pay the bonds
off. Gary Groen and I recommend paying them off early.
We have enclosed resolutions prepared by Paul Donna of
Northland Securities. These resolutions have to be
passed in order to start the process;, for paying off the
bonds early.
ITEM 4.7
MEMO
Date: October 6, 2004
To: Mayor & Council
From: City Administrator Mike Robertson
Re: Proposed Early Payment of 1998 and
1999 Sewer & Water Bonds
We are approaching the call date for the 1998 and 1999
Sewer & Water bonds. The 1998 bond is $5,000,000 and
the 1999 bond is $2,095,000. The Council borrowed the
amount in two bonds so as not to deal with the greater
restrictions that are placed on bonds over $5,000,000
and because it did not know what its final construction
costs would be in 1998. Payments on;these bonds were
made from the sewer and water hookup fees that
developers had to pay in order to build in Otsego.
Payments were scheduled to run for 20 years, but there
was a provision in the bonds that they could be called
(paid early) in 2004. Because development came much
faster than anyone expected, there is a surplus in this
account, which the City can use to pay the bonds off
early in December. Paying the bonds::toff early will
save the City $2,975,181 in future interest payments.
At this point we have $7,510,071 in the Sewer & Water
Bond Fund. $6,815,920 is required to pay the bonds
off. Gary Groen and I recommend paying them off early.
We have enclosed resolutions prepared by Paul Donna of
Northland Securities. These resolutions have to be
passed in order to start the process:lfor paying off the
bonds early.
NORTHLANDSECUITIES
September 29, 2004
Mr. Mike Robertson, Administrator
Ms. Judy Hudson, Clerk
CITY OF OTESGO
City Hall
8899 Nashua Avenue NE
Otsego, Mn 55330-7314
OCT - 4 2004
RE: Call Resolution and Notice
City of Otsego, Minnesota
General Obligation Sewer and Water Revenue Bonds of 1998, Series A
General Obligation Sewer and Water Revenue Bonds of 1999, Series A
Dear Judy & Mike:
Per your request, I am enclosing two copies each of the Call Resolution and Notice for your City
Council action on October 11`h. Please review the resolutions and advise me of any corrections.
If the resolution is OK as is, then please complete the attendance and motion details, then sign
the document where noted. Please retain one copy for the City irecords, and forward the
remaining copy to my attention. I will notify the paying agent o'If the City's action.
If I can be of further assistance, please feel free to contact me.
Very truly yours, '
No and Securities, Inc.
L
• QiuJ ��
Lori A. Giampaolo
Vice President, Partner
Enclosures
i
Northland Securities, Inc. 45 South 7th Street, Suite 2500, Minneapolis, MN 55402 Tots Free 1-800-851-2920 Main 612-851-5900 Fax 612-851-5987
www.northiandsecurities.com
Member NASD and SIPC
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE
CITY OF OTSEGO, MINNESOTA
Held: October 11, 2004
Pursuant to due call and notice thereof, a regular meeting ;of the City Council of the City of
Otsego, Wright County, Minnesota, was duly called to order on the, October 11, 2004, at _ o'clock
P.M.
The following members were present:
and the following members were absent:
�I
Member introduced the following resolution `and moved its adoption:
2004-63
RESOLUTION CALLING FOR THE REDEMPTION OF
THE OUTSTANDING
GENERAL OBLIGATION SEWER AND WATER REVENUE BONDS OF 1999, SERIES A
WHEREAS:
A. The City Council of the City of Otsego, Minnesota issued $2,595,000 General Obligation
Sewer and Water Revenue Bonds of 1999, Series A, dated July 1, 1999; and
B. All of said bonds maturing on December 1, 2006 through 2020, inclusive and thereafter, are
subject to redemption, in whole or in part, and prepayment at the option of the City on December 1,
2004, and on any date thereafter at 100% plus accrued interest, all as provided in the resolution of the
City authorizing the issuance of said bonds; and
C. The City deems it desirable and in the best interest of the City to call $2,595,000 of the
outstanding bonds maturing in the years 2006 through 2020, inclusive, for redemption on December 1,
2004, in accordance with said resolution authorizing the issuance of'said bonds, and
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of
Otsego, Minnesota as follows:
1. $2,595,000 of the General Obligation Sewer and Water Revenue Bonds of 1999, Series A,
dated July 1, 1999, of the City of Otsego, Minnesota, maturing in the years 2006 to 2020, inclusive, shall
be redeemed and prepaid on December 1, 2004, at 100% of their principal amount plus accrued interest
for each such bond called.
2. The City Clerk is hereby authorized and directed to give mailed notice of call to the bank
where said bonds are payable and said bank shall provide such notice to the holders of the bonds as may
be required by law. Said notice shall be in substantially the following form:
Otsego 99A
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION SEWER & WATER REVENUE BONDS OF 1999, SERIES A
DATED: July 1, 1999
CITY OF OTSEGO, MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council of the City of Otsego, Minnesota, there
have been called for redemption and prepayment on
DECEMBER 1, 2004
those outstanding bonds of the City designated as General Obligation Sewer and Water Revenue Bonds
of 1999, Series A, dated July 1, 1999, having the stated maturity dates of February 1, 2006 through 2020,
inclusive, totaling $2,595,000 in principal amount. The bonds are being called for redemption at a price
of 100% of their principal amount plus accrued interest to December 1, 2004, on which date all interest
on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are requested to
present their bonds for payment to U S Bank Corporate Trust Services, 60 Livingston Avenue, 3`d floor
EP-MN-WS3C, St. Paul, Mn 55107, on or before December 1, 2004.x.
Dated: October 11, 2004
BY ORDER OF THE CITY COUNCIL
/s/ Judy Hudson
City Clerk
Important Notice: In compliance with the Economic Growth and Tax Relief reconciliation Act of 2001,
federal backup withholding tax will be withheld at the applicable backup withholding rate in effect at the
time of the payment by the redeeming institutions if they are not provided with your social security
number or federal employer identification number, properly certifi ed. This requirement is fulfilled by
submitting a W-9 Form, which may be obtained at a bank or other financial institution.
Additional Information may be obtained from:
NORTHLAND SECURITIES, INC.
45 South 7`h Street, Suite 2500
Minneapolis, Minnesota 55402
Attn: Lori A. Giampaolo
Public Finance Department
Phone: 612-851-5902 or 800-851-2920
Otsego 99A
3. The City Clerk is hereby authorized and directed to depc sit with the bank where said bonds
are payable prior to said call date sufficient funds to pay all principals and interest due on the bonds as of
the call date.
The motion for the adoption of the foregoing resolution was duly seconded by council member
and upon a vote taken thereon, the following voted in favor thereof:
and the following voted against the same:
Whereupon said resolution was declared duly passed and adotpted.
1
Otsego 99A
STATE OF MINNESOTA
COUNTY OF WRIGHT
CITY OF OTSEGO
I, the undersigned, being the duly qualified and acting City Clerk of the City of Otsego, Wright
County, Minnesota, DO HEREBY CERTIFY, that I have carefully compared the preceding extract of
minutes of a meeting of the City Council of said City held on the ate therein indicated with the original
minutes thereof on file in my office and that the same is a full, true and correct transcript thereof insofar
as said minutes relate to the topic described in the title of the resolution set forth in the extract.
WITNESS my hand officially and the official seal of the City, on October 11, 2004.
City f Jerk
(SEAL)
Otsego 99A
J
EXTRACT OF MINUTES OF A MEETINQ OF THE
CITY COUNCIL OF THE
CITY OF OTSEGO, MINNESOTA
Held: October 11, 2004
Pursuant to due call and notice thereof, a regular meeting: of the City Council of the City of
Otsego, Wright County, Minnesota, was duly called to order on the October 11, 2004, at _ o'clock
P.M.
The following members were present:
and the following members were absent:
Member introduced the following resolution' and moved its adoption:
2004-64
RESOLUTION CALLING FOR THE REDEMPTION OF
THE OUTSTANDING
GENERAL OBLIGATION SEWER AND WATER REVENUE, BONDS OF 1998, SERIES A
WHEREAS:
A. The City Council of the City of Otsego, Minnesota issued $4,500,000 General Obligation
Sewer and Water Revenue Bonds of 1998, Series A, dated August 1,,11998; and
B. All of said bonds maturing on December 1, 2005 through 2020, inclusive and thereafter, are
subject to redemption, in whole or in part, and prepayment at the,joption of the City on December 1,
2004, and on any date thereafter at 100% plus accrued interest, all; as provided in the resolution of the
City authorizing the issuance of said bonds; and
C. The City deems it desirable and in the best interest of the City to call $3,695,000 of the
outstanding bonds maturing in the years 2005 through 2020, inclusive, for redemption on December 1,
2004, in accordance with said resolution authorizing the issuance of said bonds, and
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of
Otsego, Minnesota as follows:
1. $3,695,000 of the General Obligation Sewer and Water Revenue Bonds of 1998, Sereis A,
dated August 1, 1998, of the City of Otsego, Minnesota, maturing in the years 2005 to 2020, inclusive,
shall be redeemed and prepaid on December 1, 2004, at 100% of their principal amount plus accrued
interest for each such bond called.
2. The City Clerk is hereby authorized and directed to give mailed notice of call to the bank
where said bonds are payable and said bank shall provide such notice to the holders of the bonds as may
be required bylaw. Said notice shall be in substantially the following'form:
Otsego 99A
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION SEWER & WATER REVENUE BONDS OF 1998, SERIES A
DATED: August 1, 1998
CITY OF OTSEGO, MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council of the City of Otsego, Minnesota, there
have been called for redemption and prepayment on
DECEMBER 1, 2004
those outstanding bonds of the City designated as General Obligation Sewer and Water Revenue Bonds
of 1998, Series A, dated August 1, 1998, having the stated maturity dates of February 1, 2005 through
2020, inclusive, totaling $3,695,000 in principal amount. The bondslare being called for redemption at a
price of 100% of their principal amount plus accrued interest to December 1, 2004, on which date all
interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are
requested Otto present their bonds for payment to U S Bank Corporate Trust Services, 60 Livingston
Avenue, 3 floor EP-MN-WS3C, St. Paul, Mn 55107, on or before December 1, 2004.
Dated: October 11, 2004
BY ORDEROF THE CITY COUNCIL
/s/ Judy Hudson
City Clerk .,
Important Notice: In compliance with the Economic Growth and Tax Relief reconciliation Act of 2001,
federal backup withholding tax will be withheld at the applicable backup withholding rate in effect at the
time of the payment by the redeeming institutions if they are notprovided with your social security
number or federal employer identification number, properly certified. This requirement is fulfilled by
submitting a W-9 Form, which may be obtained at a bank or other financial institution.
Additional Information may be obtained from:
NORTHLAND SECURITIES, INC.
45 South 7`h Street, Suite 2500
Minneapolis, Minnesota 55402
Attn: Lori A. Giampaolo
Public Finance Department
Phone: 612-851-5902 or 800-851-2920
Otsego
3. The City Clerk is hereby authorized and directed to deppsit with the bank where said bonds
are payable prior to said call date sufficient funds to pay all principal and interest due on the bonds as of
the call date.
The motion for the adoption of the foregoing resolution was duly seconded by council member
and upon a vote taken thereon, the following voted in favor thereof:
and the following voted against the same:
Whereupon said resolution was declared duly passed and adopted.
Otsego
STATE OF MINNESOTA
COUNTY OF WRIGHT
CITY OF OTSEGO
I, the undersigned, being the duly qualified and acting City' Clerk of the City of Otsego, Wright
County, Minnesota, DO HEREBY CERTIFY, that I have carefully compared the preceding extract of
minutes of a meeting of the City Council of said City held on the date therein indicated with the original
minutes thereof on file in my office and that the same is a full, true and correct transcript thereof insofar
as said minutes relate to the topic described in the title of the resolution set forth in the extract.
WITNESS my hand officially and the official seal of the City1on October 11, 2004.
City, Clerk
(SEAL)
'I
Otsego
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE
CITY OF OTSEGO, MINNESOTA
Held: October 11, 2004
f,
Pursuant to due call and notice thereof, a regular meeting sof the City Council of the City of
Otsego, Wright County, Minnesota, was duly called to order on the October 11, 2004, at _ o'clock
P.M.
The following members were present:
and the following members were absent:
Member introduced the following resolution and moved its adoption:
2004-63
RESOLUTION CALLING FOR THE REDEMPTION OF
THE OUTSTANDING 1'
GENERAL OBLIGATION SEWER AND WATER REVENUE BONDS OF 1999, SERIES A
WHEREAS:
A. The City Council of the City of Otsego, Minnesota issued $2,595,000 General Obligation
Sewer and Water Revenue Bonds of 1999, Series A, dated July 1, 1999; and
B. All of said bonds maturing on December 1, 2006 through 2020, inclusive and thereafter, are
subject to redemption, in whole or in part, and prepayment at thelbption of the City on December 1,
2004, and on any date thereafter at 100% plus accrued interest, all as provided in the resolution of the
City authorizing the issuance of said bonds; and
C. The City deems it desirable and in the best interest of the City to call $2,595,000 of the
outstanding bonds maturing in the years 2006 through 2020, inclusive, for redemption on December 1,
2004, in accordance with said resolution authorizing the issuance of said bonds, and
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of
Otsego, Minnesota as follows:
1. $2,595,000 of the General Obligation Sewer and Water Revenue Bonds of 1999, Series A,
dated July 1, 1999, of the City of Otsego, Minnesota, maturing in the years 2006 to 2020, inclusive, shall
be redeemed and prepaid on December 1, 2004, at 100% of their principal amount plus accrued interest
for each such bond called.
2. The City Clerk is hereby authorized and directed to give mailed notice of call to the bank
where said bonds are payable and said bank shall provide such notice to the holders of the bonds as may
be required by, law. Said notice shall be in substantially the following form:
Otsego 99A
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION SEWER & WATER REVENUE BONDS OF 1999, SERIES A
DATED: July 1, 1999
CITY OF OTSEGO, MINNESOTA
1
I
NOTICE IS HEREBY GIVEN that by order of the City Council of the City of Otsego, Minnesota, there
have been called for redemption and prepayment on
DECEMBER 1, 2004
those outstanding bonds of the City designated as General Obligation Sewer and Water Revenue Bonds
of 1999, Series A, dated July 1, 1999, having the stated maturity dates of February 1, 2006 through 2020,
inclusive, totaling $2,595,000 in principal amount. The bonds are being called for redemption at a price
of 100% of their principal amount plus accrued interest to Decembei 1, 2004, on which date all interest
on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are requested to
present their bonds for payment to U S Bank Corporate Trust Services, 60 Livingston Avenue, 3`d floor
EP-MN-WS3C, St. Paul, Mn 55107, on or before December 1, 2004.!
Dated: October 11, 2004
I'
BY ORDER OF THE CITY COUNCIL
/s/ Judy Hudson
City Clerk a
Important Notice: In compliance with the Economic Growth and Tax Relief reconciliation Act of 2001,
federal backup withholding tax will be withheld at the applicable backup withholding rate in effect at the
time of the payment by the redeeming institutions if they are not ' provided with your social security
number or federal employer identification number, properly certified. This requirement is fulfilled by
submitting a W-9 Form, which may be obtained at a bank or other financial institution.
Additional Information may be obtained from:
NORTHLAND SECURITIES, INC.
45 South 7`h Street, Suite 2500
Minneapolis, Minnesota 55402
Attn: Lori A. Giampaolo
Public Finance Department
Phone: 612-851-5902 or 800-851-2920
Otsego 99A
3. The City Clerk is hereby authorized and directed to deposit with the bank where said bonds
are payable prior to said call date sufficient funds to pay all principal! land interest due on the bonds as of
the call date.
The motion for the adoption of the foregoing resolution was;duly seconded by council member
and upon a vote taken thereon, the following voted in favor thereof:
and the following voted against the same:
Whereupon said resolution was declared duly passed and adopted.
I'
i.
i'
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i
Otsego 99A j
N
i'.
STATE OF MINNESOTA
COUNTY OF WRIGHT
CITY OF OTSEGO
I, the undersigned, being the duly qualified and acting City Clerk of the City of Otsego, Wright
County, Minnesota, DO HEREBY CERTIFY, that I have carefully compared the preceding extract of
minutes of a meeting of the City Council of said City held on the date therein indicated with the original
minutes thereof on file in my office and that the same is a full, true and correct transcript thereof insofar
as said minutes relate to the topic described in the title of the resolution set forth in the extract.
WITNESS my hand officially and the official seal of the City on October 11, 2004.
City 'Clerk
i'
(SFAs,)
i
1.
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I'
Otsego 99A
I�
i'
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE !.
CITY OF OTSEGO, MINNESOTA
Held: October 11, 2004
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of
Otsego, Wright County, Minnesota, was duly called to order on the October 11, 2004, at _ o'clock
P.M. I
The following members were present:
and the following members were absent:
Member introduced the following resolutiori and moved its adoption:
2004-64
RESOLUTION CALLING FOR THE REDEMPTION OF
THE OUTSTANDING
GENERAL OBLIGATION SEWER AND WATER REVENUE BONDS OF 1998, SERIES A
WHEREAS:
A. The City Council of the City of Otsego, Minnesota issued $4,500,000 General Obligation
Sewer and Water Revenue Bonds of 1998, Series A, dated August 1,1998; and
B. All of said bonds maturing on December 1, 2005 through 2020, inclusive and thereafter, are
subject to redemption, in whole or in part, and prepayment at tWoption of the City on December 1,
2004, and on any date thereafter at 100% plus accrued interest, all , as provided in the resolution of the
City authorizing the issuance of said bonds; and
C. The City deems it desirable and in the best interest of the City to call $3,695,000 of the
outstanding bonds maturing in the years 2005 through 2020, inclusive,. for redemption on December 1,
2004, in accordance with said resolution authorizing the issuance of said bonds, and
i
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of
Otsego, Minnesota as follows: i.
1. $3,695,000 of the General Obligation Sewer and Water Revenue Bonds of 1998, Sereis A,
dated August 1, 1998, of the City of Otsego, Minnesota, maturing in the years 2005 to 2020, inclusive,
shall be redeemed and prepaid on December 1, 2004, at 100% of their principal amount plus accrued
interest for each such bond called.
f.
2. The City Clerk is hereby authorized and directed to give mailed notice of call to the bank
where said bonds are payable and said bank shall provide such notice to the holders of the bonds as may
be required by flaw. Said notice shall be in substantially the following form:
Otsego 99A
NOTICE OF CALL FOR REDEMPTION
;;
GENERAL OBLIGATION SEWER & WATER REVENUE BONDS OF 1998, SERIES A
DATED: August 1, 1998 11
CITY OF OTSEGO, MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council of the City of Otsego, Minnesota, there
have been called for redemption and prepayment on
DECEMBER 1, 2004
those outstanding bonds of the City designated as General Obligation Sewer and Water Revenue Bonds
of 1998, Series A, dated August 1, 1998, having the stated maturity dates of February 1, 2005 through
2020, inclusive, totaling $3,695,000 in principal amount. The bonds are being called for redemption at a
price of 100% of their principal amount plus accrued interest to December 1, 2004, on which date all
interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are
requested to present their bonds for payment to U S Bank Corporate Trust Services, 60 Livingston
Avenue, 3`a floor EP-MN-WS3C, St. Paul, Mn 55107, on or before December 1, 2004.
i.
Dated: October 11, 2004
k
BY ORDER: OF THE CITY COUNCIL
/s/ Judy Hudson
City Clerk
Important Notice: In compliance with the Economic Growth and Tax Relief reconciliation Act of 2001,
federal backup withholding tax will be withheld at the applicable backup withholding rate in effect at the
time of the payment by the redeeming institutions if they are not Iprovided with your social security
number or federal employer identification number, properly certified. This requirement is fulfilled by
submitting a W-.9 Form, which may be obtained at a bank or other financial institution.
Additional Information may be obtained from:
NORTHLAND SECURITIES, INC.
45 South 7`h Street, Suite 2500
Minneapolis, Minnesota 55402
Attn: Lori A. Giampaolo
Public Finance Department
Phone: 612-851-5902 or 800-851-2920
Otsego