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MINUTES <br />CITY COUNCIL <br />OCTOBER 27, 1999 <br />BOND SALE <br />THE SECOND COUNCIL MEETING IN NOVEMBER AT 7:30 P.3 . <br />TO CONSIDER THE REZONING OF CERTAIN CITY PROPERTY <br />ALONG COUNTRY DRIVE FROM 1-1 TO PUBLIC <br />The foregoing resolution was duly seconded by LaVaile. <br />Ayes (5) Scalze, LaVaile, Pedersen, Morelan, Fahey. <br />Nays (0). Resolution declared adopted. <br />Rusty Fifield, Ehlers & Associates, reported that the low bidder for <br />3470,000 G.O. Permanent Improvement Revolving Fund Bonds, Series <br />1999A was John G. Kinnard & Company at a true interest rate of <br />5.1344 %. This bond sale will finance the assessable portion of the Arcade <br />Street improvement project as well as the 1999 street improvements. The <br />low bidder for 3790,000 Taxable G.O. Tax Increment Bonds, Series <br />1999B was Miller, Johnson & Kuehn, Inc. at a true interest rate of <br />7.7090 %. This interest rate is 20 points higher than what was projected. <br />Fifield reported that the taxable bond market is much weaker and the <br />effects of rising interest rates are seen more clearly. This bond sale is <br />being issued to finance the acquisition of land and related costs for <br />redevelopment within the City's Tax Increment Financing District <br />No. 2 -1. <br />Fifield reviewed the rating review process that Moody's went through to <br />assign the City's bond rating of A2. Fifield reported that this is an <br />excellent bond rating which reflects the City's excellent financial status <br />and strong cash position. Fifield indicated that it will likely take the <br />results of the 2000 Census with regard to per capita income before the <br />City can hope to see its bond rating move to an Al. <br />Fifield recommended award of the low bid for both bond issues as <br />presented, and indicated that the City would have little to gain in going <br />back into the taxable bond market at this point. <br />Mr. Fahey introduced the following resolution and moved its adoption: <br />RESOLUTION NO. 99-10-207 - ACCEPTING PROPOSAL ON SALE <br />OF 5470, 000 GENERAL OBLIGATION PERMANENT <br />IMPROVEMENT REVOLVING FUND BONDS, SERIES 1999A AND <br />PROVIDING FOR THEIR ISSUANCE AS RECOMMENDED BY <br />THE CITY'S FINANCIAL CONSULTANT <br />The foregoing resolution was duly seconded by Morelan. <br />Ayes (5) Fahey, Morelan, Scaize, Pedersen, LaVaile. <br />Nays (0). Resolution declared adopted. <br />Page 147 <br />