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MINUPES <br />City Council <br />July 28, 1993 <br />equipment is usually a short duration bond issue which would <br />increase the tax levy quite a bit since the cost of the <br />apparatus is so high. Morelan indicated that the argument <br />he has heard about this is why should people today pay for <br />fire protection tomorrow. Voto felt that it is more <br />beneficial to put the money aside than bond. He felt that <br />if bond issues are used time after time, the City would be <br />essentially rolling bond issues to provide that type of <br />financing. Costs of issuance is another factor. <br />LaValle asked about the $125,000 the City advanced to the <br />Fire Department to provide full financing for their fire <br />truck. LaValle wanted to know if any of the amount had been <br />paid back to the City. The City Administrator stated that <br />the $34,650 shown on page 11 has been received to-date, but <br />another payment should be received soon. <br />Voto stated that he believes in reserve balances. He has <br />had experience helping cities work out o£ deficits. The <br />City's reserve balances are helping to fund the 1993 <br />improvement projects listed on page 27. Voto stated that <br />the total cost of the projects will be about $1,403,500. <br />Only $1,002,300 will be assessed with the balance of <br />$401,200 coming from other financing. In this case, the <br />City has the balance on hand in the State Aid Roads Fund, <br />the Capital Replacement Fund and the Closed Bond Fund to <br />fully take care of that financing need. <br />Morelan asked what the Closed Bond Fund is to be used for. <br />Voto indicated that it is to be used for a Council <br />designated purpose. In the past, the City has spent this <br />money on un-bonded projects. <br />Voto indicated that page 28 outlines the financial <br />management requirements. He stated that this document is <br />something he requires to understand what projects are doing. <br />There being no further business, the meeting was adjourned <br />at 6:40 p.m. <br />~ ;, <br />i <br />- ~ i /' <br />, % , ,,.~..> >.. /'.-A /~ ' ~,~4 c„ ~~ ~ <br />TFayfficy d G. fTa ~ son, Mayor <br />•= ,. ~_ 1 <br />Attest ,.. a ; ~~ ~~ ` , <br />Joel . Hanson, City Administrator <br />~ <br />-8- <br />