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MINIJ"CES <br />Ci.ty Counci.l. <br />P'eb. 23, 19£33 <br />Ii.re "Crucic The foregoi_ng resolut:ion was <lul.y seconded b~ i^~rs. Scalze. <br />(Cont.) Ayes (5) I~ahey, Scalze, Hanson, Nardini., Porsberg. <br />Nayes (0). <br />Resolirti.on declare.d adopted. <br />Tlii.s resolut:ion appear, in Resoluti.on i3oolc No. 9, Page 78. <br />Mr. Brad F~rnham ~oent. throuy;h Che detai,ts o£ the certifi.cate sale <br />that result in the `~175,000 figure. P1r. i'arnham reported tY~at the <br />purcSase pri.ce of. the certi.f.i_cates wi.11 be $1"/1.,i70. <br />i4r. Farnham also expl.ained to the Counci.l. the :i.mpact tnat the sal.e <br />~ai.lt have on Caxes i.n t:he City. ~ <br />Mr. ~P'ar.nham report;ed that the net ef.f.ecCi.ve inta:rest rate on the <br />cert:i.f.icate, will. be 7.34% and tlie average coupon r.ate 6.31.%. <br />The estirnatecl closi.ng date cai.17. be March 1''i, 1983. <br />~1r. Pat~ey as!ced Mr. T'arnkiam for comparable interest r.ates ~i.n other <br />current bond sal.e,. Mr. Parnhuin reolied that he d:id not 1~ave t:hese <br />f.~i.gures wi.th hi_m, but assured tkie Cot.inci.l. that the 7.34% toas <br />competiti.ve. "tr. Fahey commented chlt the f.i~ure was certai.nly low <br />compared co other 1>on<1 sales the Ci.ty h1s hacl. <br />?tr. Fahey asked Mr. Farnllam sahat sort oP :interest rate the Ci.ty <br />rnight except on the sale of: boncts t:o cover the City's water pr.ojects <br />beino consi.dered at tonigl.~t's meetin~. Mr. Farnham repli.ed that <br />the Ci.ty shoul.d. get i.nto the marLcetp7.ace quickl.y for a favorabl.e <br />i.ntere>t rate. P4r. Parnharn also pointed out that should the City <br />go wi.th an 8 or 1.2 year bond i.ssue, t:l~e i.nterest would be. more <br />favorable than on a 15 yr~ar i.ssue. <br />Mrs. Nar.d.ini. i.ntroduced the f'ollowi.n~; resolution and moved its eido~>tion: <br />RSSOLUTTON N0. 43-2-77 - PROVIllIN~ PO?: 'I'I~IE <br />ISS!JANCE AND SALE OP ,~,~175,000 C.;tiNP:,RAL <br />OF~LIOA7'ION P~pi)IP~1tiN7' CERTIDICf~T,)iS OF 7.9E33 <br />The foreg;oing resolut:i.on oras duly seconded by Mr. Forsberg. <br />Ayes (5) Nardini, Porsberg, Scalze, I-lanson, Fahey. <br />Nayes (0). <br />12esolution decl.ared ado~~ted, <br />Th;i.s resolation appears l.n Rcsolution 73ool,c N0. 9, Pages 79 cl~rough H6. <br />~1r. P~hey asiced for a bailparlc ~F:i.gi.ire on the i.nterest ratc the City <br />m1.~;ht expect on a water project. Mr. 'P'arnhnm repl.ied that w~th an <br />^. ~ear :issue the City might expect under 9%, w:i.tli a 1.0 year :Lssue <br />around 10% maybe less and with 15 years maybe over 17%. <br />Pa;;e -2- <br />