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515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484 -4538 <br />MEMORANDUM <br />TO: Mayor Hanson & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: April 22, 1994 <br />RE: Authorization for Notice of Call of $155,000 G.O. <br />Improvement Bonds of 1987 <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 />Attached is a resolution which will authorize the call of the <br />remaining principle balance ($50,000) for the 1987 G.O. <br />Improvement Bonds. You will note on the notice of redemption the <br />principle amounts due in 1994 and 1995 with the respective coupon <br />rates. It is my opinion that the City's money is best managed by <br />calling in the outstanding principle to complete the pay off of <br />this issue at this time. The basis for this opinion is that the <br />interest rates we are paying on this debt are higher than what we <br />can earn by reinvesting our funds at this time. It should also <br />be noted that this is a special assessment issue and will have no <br />impact on our annual debt service levy. <br />Three other issues may be candidates for this type of transaction <br />effective on July 1. Recommendations regarding these issues will <br />be addressed in May. <br />Should you have any comments or questions regarding this matter, <br />please let me know. <br />JRH:kpv <br />Enclosure <br />Page 125 <br />