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AGENDA RECOMMENDATION |
5.N.
City Council Regular Meeting
- Meeting Date:
- 09/22/2025
Agenda Item:
Resolution Accepting the Offer of the Minnesota Public Facilities Authority to Purchase a $49,385,616 General Obligation Sewer Revenue Note of 2025A, Providing for its Issuance and Authorizing Execution of a Bond Purchase and Project Loan Agreement with Point Source Implementation Grant.
Recommendation/Action(s):
Approval of attached resolution.
Summary:
As part of the Wastewater Plant Upgrade project #32261 originally approved by council on May 13, 2024, we submitted updated application materials to the Public Facilities Authority (PFA) on September 11, 2024, for the loan and grant portion of the project. We recently received final approval from PFA to move forward with the financing and grant agreement.
The Bond resolution authorizes the City Manager and Mayor to enter into a contract with the Public Facilities Authority (PFA) and accept the sale of $49,385,616 General Obligation Sewer Revenue Note of 2025A along with accepting the Point Source Implementation Grant (PSIG) grant in the amount of $11,239,454. The grant amount was increased from the original $7 million due to legislation in 2024. Additionally, the $49,385,616 loan contains a PFA required contingency of $4,186,130 that, if not drawn down, will not be borrowed. The final loan amount will be repaid over 20 years at 2.807%.
The Bond resolution authorizes the City Manager and Mayor to enter into a contract with the Public Facilities Authority (PFA) and accept the sale of $49,385,616 General Obligation Sewer Revenue Note of 2025A along with accepting the Point Source Implementation Grant (PSIG) grant in the amount of $11,239,454. The grant amount was increased from the original $7 million due to legislation in 2024. Additionally, the $49,385,616 loan contains a PFA required contingency of $4,186,130 that, if not drawn down, will not be borrowed. The final loan amount will be repaid over 20 years at 2.807%.