07-23-80 Council Special Minutes

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MINUTES City Council July 23, 1980 The $190,000 bonds of 1976 reflect a positive projected fund position in the amount of $57,119 at December 31, 1979. This indicates that the City may cancel a portion of the scheduled future tax levies on this issue. The auditors are recommending that the City cancel 50% of the scheduled future tax levies for this bond issue and add a like amount for the 1966 Bonds. The refunding bonds of 1978 reflect a positive projected financial position in the amount of $142,148 as of December 31, 1979. This represents a $52,000 improvement during 1979. Mr. Voto informed the Council that this bond issue is adequately financed. The $2,995,000 bonds of 1978 reflect a positive projected fund position in the amount of $123,491 as of December 31, 1979. Mr. Voto indicated that this bond is not fully financed and recommended that the City continue to monitor the projected position of the account to assure full and timely financing for this bond issue. Mr. Voto indicated that the $1.,575,000 temporary bonds of 1979 will mature August 1, 1982 at which time the City will re-finance by a permanent bond issue. It is recommended that before refinancing the City should analyze and review the financial requirements of the new issue to assure adequate financing. On page 22 of the report it is indicated that the City has improved its special assessment debt service accounts by $555,000 over the past three years. Mr. Voto stated that the program .put together to improve these accounts is working better than anticipated. Mr. Voto indicated that on page 23 it is reported that the Interim Construction Account was effectively closed at December 31, 7979 and transferred to the Improvement Bonds of 1979 Construction Account. The Improvement bonds of 1975 Construction Account has a fund deficit of $1,864 as of December 31, 1979. It is recommended that the City analyze and review this account in 1980 and alternative sources of financiny be provided for the existing deficit and all future costs. All projects under the Improvement Bonds of 7978 Construction Fund will be complete and final costs should be paid in 1980. Mr. Voto commented that the City has done a real good job in terms of reversing its problems. If the City has another three years like the prior three years, it will be in an ideal situation. The improvement of the past three years has been fantastic. The projects financed under the Improvement Bonds of 1979 should be completed and assessed in 1980. When this happens the Improvement Bonds of 1979 Construction Fund may be closed in 1981. The Enterprise Funds are shown on page 25 of the report. There has been a decrease in income from the Water Utility and an increase in charges from the St. Paul Water Department.. The City Clerk reported that a possible increase in the water rates is being studied. Page -4-