Laserfiche WebLink
MINUTES <br />CITY COUNCIL <br />January 10, 1990 <br />Fahey reviewed the City Auditor's report dated January <br />10, 1990 which outlines the effect of a$1,620,000 bond <br />issue on the City~s future debt service tax levies. <br />The report indicates that the 1989/90 Debt Service Tax <br />Levies were 39% of the City~s total tax levy, and the <br />new debt service tax levies should increase the City's <br />total tax levy by approximately 120. <br />Brad Farnham, Juran & Moody, reported that the chart <br />illustrates an attempt to keep the debt portion of the <br />tax levy down in the early years, so that there will <br />not be a roller-coaster effect on the City's tax levy. <br />Blesener asked about the feasibility of extending the <br />bond issue out further. <br />Farnham replied that extending the bond issue increases <br />costs substantially with interest costs becoming <br />prohibitive. Farnham also reported that from a rating <br />standpoint, issues are becoming shorter, in the 10 to <br />15-year range, with 20-year issues becoming fewer and <br />fewer. <br />Fahey pointed out that the size of the fire station was <br />debated at some length. It was the opinion of the <br />architect that a 10,000 square foot station would not <br />be functional, and reducing the size of the station <br />from 12,000 square feet to 10,000 square feet would <br />result in a cost savings of only $150,000. Fahey <br />pointed out that the bond issue would still be higher <br />than originally anticipated at $1.4 to $1.5 million. <br />Fahey stated that he agreed with the recommendation of <br />the Administrator that the City would be wise to bond <br />for the $1,620,000 noting that the amount can be <br />reduced later if bids come in lower than anticipated. <br />Fahey stated that the size of the issue would not be an <br />indication of what ultimately will be approved, <br />although Fahey stated that he did not see much fat in <br />the proposal. <br />Fahey suggested that the costs could be reduced by <br />eliminating furnishings and equipment from the budget <br />as well as eliminating $50,000 in land differential <br />costs. Fahey stated that he is anticipating project <br />costs of $1.5 million. <br />Blesener felt that there were methods of eliminating <br />another $100,000 from the budget by various methods. <br />Page 3 <br />