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City of Blue Earth, Minnesota. Public Project Revenue Bonds Series 2006B - Refunding. January 22, 2013. Public Project Revenue Bonds, Series 2006B. Original Par Amount: $1,185,000 Financed construction of public safety facility EDA owns facility and leases to City
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City of Blue Earth, Minnesota Public Project Revenue Bonds Series 2006B - Refunding January 22, 2013
Public Project Revenue Bonds, Series 2006B • Original Par Amount: $1,185,000 • Financed construction of public safety facility • EDA owns facility and leases to City • Only financing option available at the time • Final maturity date: February 1, 2027 • First redemption (early payment) date: February 1, 2013 • Principal amount outstanding: $940,000 • Average coupon on outstanding maturities: 4.7%
G.O. Refunding Bonds, Series 2013A • 2006 statutes changed to allow G.O. Bonds for public safety facilities (M.S. 475.521 CIP Bonds) • Principal amount of refunding: $995,000 • Principal and interest outstanding: $950,895 • Cost of Issuance: $32,000 • Underwriter's Discount (Fee): $9,452 • Round to $5,000 Increment: $2,652 • Keep same repayment schedule (2027) • Estimated interest rate: 2.0% • Estimated present value savings: $149,000 • Savings are net of all financing costs
M.S. 475.521 Capital Improvement Plan Bonds • Allows cities to offer general obligation without a referendum. • Must hold a public hearing to approve plan and bonds • Subject to 30-day reverse referendum • Never been used on refunding bonds • Requires two-thirds majority vote • Statutory limit on amount of G.O. CIP Bonds • City is well below the limit