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MINtJTiiS <br />Ci.ty Counci.l <br />Feb. 22, 1983 <br />i'i.re 'Crucl< & <br />Senior <br />Ci.ti.a.en <br />llousi.ng <br />(Cont.) <br />P4r. Voto read to the Council. his r.ecommendations which are Li.steci on <br />pa~es 9 and 10 of. the report, Aasically, Mr. Voto recommended that <br />the City go with a$175,000 bond i.ssue for. the fi.re tructc. <br />Mr. Chlebeclc repor.ted that the Cit.y Attorney has stated that there is <br />no problem wi.th the Ci.ty's reappropri.ating the $45,000 to seni.or c:i.tizen <br />housi.n~; and fully fi.nancing Che fire, truclc. <br />Mrs. Scalze r.eported that the Council previously discussed the possi.bility <br />of sel.li.n~; City propertie>. Scalze astced if: Lhe proceeds f.rom such a <br />sale coul.d be used T.o reduce the inclebtedness on the certi.ficates. <br />Mr. Voto stated th2t thi.s could be done if and when i.t happens. <br />Mr. Ilanson asked the Auclitor i.t he was sur.e about the 7% figure. Mr. <br />Voto repl~.ied thaC thi.s fi~;ure would be ne~;otiated eviCh Juran & t9oody. <br />A1r. Vot:o staCed that the bonds have probably already been sold subject <br />to Council author.iz~.rt:i.on. Mr. Voto stated that these certiLicates <br />can be negot:i.ateci as they are under $300,000. They are also short <br />term. iAr.. Voto stated that: ci.ties have a high credit rating on these <br />[ypes of sate as the ci.ty says that taxes wi.ll be levi.ed annually for <br />these certi.f.i.cates. Mr. Voto sCated that he suspects the :interest. <br />r.ate on the bonds will be between 6 3/4 and 7%. Mr.. Voto stated that <br />a 7% yi.eld i.n a 50% tax bradcet is a 1.4% yi.eld. The certif:i.caCes <br />ar.e State and rederal. tax exempt. <br />The Ci.ty Clerl< aslced in t.he event the City recei.ves the State grant <br />and it does se11 some pr.oper.ty could the City refund t.h~ $4'~,200 bac4c <br />to the P:ire Department. <br />Mr. Voto repor.ted that the actual fi_gure thaC wil.l. be needed i.s $37,500. <br />i1r. i~oss, Sr. reported thaC in the process of l.oolci.ng at fire equi.pment, <br />the Pire Depar.tment i.ncurred some expenses. Mr. Boss asked how this <br />will be covered. Voto stated t:hat thi.s coul.d be covered i.n the <br />certi.f.i.cate as he has provided a$5,000 cushi.on in the issue. <br />Mrs. Nardini stated that she di.d not f:eel that: 7 men had to be sent to <br />loolc at fire equipment. Mr. .Boss repl:i.ed that these men spent many <br />hours on thi.s and Lhe committee felt t11at a:l.l should be enlightened on <br />what the manufacturer had to of.f.er. <br />Mr. Voto stated thaC he is sug~;esting that the Ci.t:y taice previ.ously <br />appropriated funds and reappropr.i.at:ing them. <br />Mr. I-lanson as(ced i.f there was any need to continue bvdp.,eting $10,000 <br />per year Lor the T~i.re Department trucic fund. Mr. Voto replied that: <br />this would be drop~ed. Mr. Voto stated that i.t malces sense to bond <br />f.or thi.s type o£ purchase and some*ahat amortize the cost over current <br />rather than future servi.ces. Voto stated that the price of equipment <br />i.ncreases so rapidly that iC is somewhat i.mpossible to set as:i.de <br />money f.or this purpose. <br />Page -7- <br />