06-12-1985 Council Agenda - Laserfiche WebLink

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VOTO, REARDON, TAUTGES & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS Birch Lake Professional Building • 1310 E. Hwy. % • White Bear Lake, MN 55110 • Phone 426 -3263 May 21, 1985 Mr. Joseph G. Chlebeck City Clerk- Treasurer City of Little Canada 515 Little Canada Road St. Paul, Minnesota 55117 Dear Joe: ROBERT I. VOTO. CPA TIMOTHY T. REARDON. CPA ROBERT G. TAIITGES, CPA RE: DEBT SERVICE STUDY - UPDATE @ 12/31/84 Pursuant to your request, this letter is intended .to outline the terms of our engagement to update the City's Debt Service Study relating to the various Special Assessment Bond Issues of the City as of December 31, 1984. The City's latest Debt Service Study was prepared based upon December 31, 1981 data. Since that date, the City's tax and special assessment collection rates and cash management systems have improved. Additionally, the City has received substantial cash connection charges. These events will cause substantial impro- vements to the previous projections. Our updated analysis will include a spe- cial review of the ability of the City to cancel existing scheduled tax levies for the City's Special Assessment Debt over the remaining terms of these bond issues. This information will allow the City to better manage (i.e., limit) its overall annual tax levy. The purpose and intent of a Debt Service Study is to generate cash projections of future transactions relating to individual bond issues and debt service accounts or funds. These cash projections, in turn, are analyzed, reviewed and interpreted to allow the City to manage these funds. Specific benefits of such a study often include the following: • Information is provided which may allow the City to reduce debt related tax levies with a high degree of reliance that such reductions will not affect the ability of the individ- ual funds to meet debt payments. • Information is provided for establishing a plan for pro- viding supplemental financing in those funds which have a projected deficit. If a projected deficit exists, a solu- tion can be effected gradually rather than in a single year. • Information is provided regarding projected surpluses. If the City has estimates of the amount of surplus to be available upon bond maturity, a plan for the use of such monies will be helpful to manage the City's overall tax levy. 53 MEMBERS Of AMERICAN INS111UTE 01 CERTII LED PUBLIC ACCOUNTANTS • PRIVATE COMPANIES PRACTICE SECTION MINNESOTA SOCIE1' Of CER TI1 It() PUBLIC ACCOUNTANTS MUNICIPAL f INANCE OIIICERS ASSOCIATION •MINNESOTA ASSOCIATION Of SCHOOL BI•SINESS OEfICIALS