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MINUTES <br />CITY COUNCIL <br />OCTOBER 17, 1991 <br />Farnham began review of the individual bond issues. It <br />was pointed out that no restructuring is proposed for <br />G.O. Sanitary Sewer Improvement Bonds of 1966 and 1967, <br />or for G.O. Improvement Bonds of 1978 (Schedules lA and <br />1B as well as 2A and 2B). <br />Farnham reviewed G.O. Improvement Bonds of 1983 <br />(SChedules 3A and 3B) pointing out that by calling in <br />some of the debt, scheduled tax levies for 1994 and <br />1995 could be eliminated. Next reviewed were G.O. <br />Refunding Bonds of 1985 (Schedules 4A and 4B). By <br />calling some of this debt, we also realize reduced tax <br />levies in the years 1992, 1993, and 1994, and the <br />elimination of the levy scheduled for 1995. <br />Farnham reviewed G.O. Storm Sewer Bonds of 1986, <br />recommending a refunding. Farnham pointed out that <br />while scheduled tax levies would increase slightly in <br />the years 1992 through 1995, levies after that point <br />decrease dramatically. When combined with the other <br />issues to be refunded, Farnham indicated that there <br />would be no increase in overall tax levies. The <br />refunding of this issue alone would provide <br />approximately $100,000 in saving to the City in <br />scheduled tax levies over the life of the issue. <br />Farnham reviewed G.O. Public Project Revenue Bonds, <br />Series 1990 (Schedules 6A and 6B), and recommended no <br />change in that issue. <br />Farnham then reviewed Schedules 7A and 7B, which is the <br />summary of the six tax levy bond issues pointing out <br />that the result of the refundings recommended would be <br />approximately $400,000 in savings to the taxpayers over <br />the next six years. Another result of the refunding <br />would be the evening out of scheduled levies at a level <br />of approximately $665,000 per year. (The same as is <br />presently levied in 1991.) <br />Blesener pointed out that if this proposal is approved, <br />the City would begin to realize a savings in 1992, and <br />the City would be able to reduce its bonded debt levy <br />by almost $20,000. <br />The City Administrator reported that this would result <br />in a drop in the proposed tax increase for 1992 (5.39% <br />to 4.39%). <br />Farnham reported that the refunding as proposed has <br />become possible due to the recent drop in interest <br />rates. He also noted that if the City is interested in <br />the proposal, two issues (1983 and 1985) must be called <br />fairly soon to meet issue deadlines. A final decision <br />on the refunding itself can be made within the next two <br />months. <br />Page 3 <br />