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(-6 e( <br />2511/4 (anaa /a <br />515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484 -4538 <br />April 23, 1993 <br />MAYOR <br />Raymond G. Hanson <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />TO: Members of the EDA <br />FROM: Joel R. Hanson, Secretary <br />RE: Crossover Refunding of Fire Station Revenue Bonds of 1990 <br />Due to the substantial decline in interest rates since 1990, <br />Springsted, Inc. has advised us that a crossover refunding would <br />generate some significant savings to the City for the <br />above - referenced bond issue. Enclosed under separate cover in the <br />agenda packet are the detailed recommendations from Springsted, Inc. <br />dealing with the refunding of this issue. You will note that the <br />future value of the savings related to this issue is $116,270 and <br />that the estimated present value net savings is $80,755. It should <br />also be noted that I instructed Springsted to structure this issue <br />with the majority of the savings to occur at the end of the bond <br />issue in order maximize those amounts. <br />By combining this issue with the 1993 improvements issue for the <br />City, we are generating an "economy of scale" which results in <br />savings to both issues. After reviewing the detailed information <br />contained in the separate hand -out, please feel free to let me know <br />if you have any comments or questions. It will be my recommendation <br />that we proceed with the crossover refunding as proposed. <br />Page 1 <br />