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Council Meeting <br />July 26, 1982 <br />CONSIDERATION OF REFINANCING THE 1979 TEMPORARY BONDS <br />III Mr. Jerry Shannon, of Springsted, noted this is for the refinancing of the temporary <br />bonds and all receipts and funds taken into consideration, they are proposing a <br />bond issue of $750,000.00. This would mature in 1992. <br />1 <br />215 <br />Mr. Shannon pointed out some of the problems facing the City in the area - the lots <br />that have been declared as being unbuildable and do have assessments levied against <br />them; the assessments were not filed for collections until this year, therefore, only <br />one year's receipts will be realized. <br />Mr. Shannon went through the schedule of repayment as had been prepared by his firm. <br />Mr. Shannon reported that the firm would recommend that the City apply for a bond <br />rating from Moody's Investors,non -rated bonds are very hard to sell. <br />The recommendation from Springsted is that the bonds be offered for sale at the <br />regular Council meeting to be held on August 26, 1982. <br />Mr. Reinert asked, is because of the unusable lots that the City will not be able <br />to collect enough to pay the bond' issue and Mr. Shannon, said, Yea._ .He also pointed <br />out that the original assessment was certified at 8% and the resale will be at a <br />higher interest rate. Mr. Shannon said the City cannot go back and establish a new <br />interest rate. <br />Mr. Reinert asked, if at the time of the original sale was there any information <br />available as to the position of the Corps of Engineers on those unusable lots? <br />Mr. Schumacher said, at the time of the sale he had only been here for one month <br />and does not have background information on this project. <br />Mr. Marier asked if those lots had been included in the calculations for assessment <br />receipts and Mr. Shannon said, No. <br />Mr. Shannon was asked what the levy to the City would be to pay the assessments <br />on those lots and Mr. Shannon said it would be approximately 2 mils. <br />Mr. Hawkins reported that he had talked with Bond Counsel and had been told that the <br />City could go back and reassess the entire project at a new interest rate. Mr. Hawkins <br />suggested that the deficit created by the unusable lots be added to the overall <br />assessments, the entire area be re- calculated and studied for this possibility. <br />Mr. Shannon discussed the alternatives as suggested by the recertification noting that <br />the City must have the funds to retire the existing bonds by the first of December, <br />possibly two weeks before that date. <br />Mr. Shannon presented the Resolution ordering the sale of $750,000.00 Bond Issue <br />setting forth all necessary data. <br />Mr. Marier felt that all areas should be researched. Mr. Marier moved to authorize <br />Mr. Hawkins to research the deferment of the bonds with the Bond Consultant. Mr. Hawkins <br />asked that this include the possibility of reassessment and felt the City Engineer <br />should recalculate this assessment. This report to be back by next week. Seconded by <br />Mr. Kulaszewicz. Motion carried unanimously. <br />OPEN MIKE <br />Mr. Marlin Tramm of MarDon Homes had requested to appear to discuss his Letter of Credit. <br />Mr. Schumacher reported that Mr. Tramm has arranged for the extension of this Letter of <br />