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1 <br />1 <br />1 <br />173 <br />COUNCIL MEETING JULY 27, 1987 <br />1. Such improvement is hereby ordered as proposed in the Council <br />resolution adopted July 13, 1987. <br />2. Mr. Ron Stahlberg is designated as the Engineer for this improve- <br />ment. He shall prepare plans and specifications for the making <br />of such improvement. <br />Adopted by the Council this <br />:July <br />i� / <br />'en,jami G. Benson, Mayor <br />Marilyn G. Anderson, Clerk- Treasurer <br />CONSIDERATION AND APPROVAL OF RESOLUTION NO. 32 - 87 SETTING BOND <br />SALE FOR IMPROVEMENT PROJECTS OF 1987. <br />Mr. MacGillivray discussed the highlights of the proposed bond sale. <br />He explained that there are basically two issues. The first involves <br />the fact that it is a proposed three year temporary bond. There are <br />two reasons for the temporary bond. The costs are based on very con- <br />servative estimates and there may be a considerable surplus at the end <br />of the three year period. The second issue involves the funding of <br />the temporary bond. It allows for two methods for refinancing the <br />temporary bond. At the end of the three year period the Council can <br />choose to re -issue another three year temporary bond or go to a long <br />term definitive issue. It would be possible to delay payment on the <br />principal for six to nine years. This also gives the City the flex- <br />ibility to react to actual experience of revenue collection. <br />Mr. MacGillivray discussed other financing connected with this <br />improvement.. He has constructed a table outlining other fees, <br />connection charges and an area assessment. This assessment will be <br />over a fifteen year period at 9% interest. The interest will also be <br />capitalized in the bond issue. <br />The purpose of—this bond sale is to finance the improvements for the <br />D. Erickson, 2nd Addition and South Reshanau Lake Estates plat as well <br />as for the improvement of Deer Pass Trail, North Road, construction of <br />the Trunk Water Mains and for the 4th Avenue Improvement. <br />Bicls for the bond sale will take place on August 24, 1987 and the <br />results will then he taken to the Council that evening for approval. <br />PAGE 4 <br />