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1 <br />1 <br />175 <br />COUNCIL MEETING JULY 27, 1987 <br />Mr. Reinert asked what the Discount is? Mr. MacGillivray explained <br />that this a payment to the underwriters and covers the cost of selling <br />the bonds to their customers. Mr. MacGillivray was asked what period <br />of time is the biggest risk? He explained it would he within the <br />first three years if no development takes place. However, with a <br />temporary bond issue the Council has the option of going with another <br />three year temporary issue thus delaying payment on the principal for <br />a total of six years. Mr. Marier asked if the bonds were to be <br />refinanced, what would the interest be? Mr. McGillivray said that <br />would be hard to guess. He said that the new-interest rate would not <br />necessarily increase because the City did not have the funds to pay <br />the principal at the end of the first three years. Other factors <br />would also determine what the interest rate would be. Mr. Marier said <br />he felt the Council should proceed with the philosophy that there is <br />an obligation there to pay or just go long term with the bond issue <br />from the beginning. Mr. MacGillivray said he felt because of the <br />variables in this issue it would he best to proceed with the temporary <br />issue. He noted that one issue would not necessarily affect this <br />Cities bond rating. <br />Mr. Bisel moved to adopt. Resolution No. 32 - 87 for the issuance and <br />sale of $1,650,000 temporary improvement bonds. Mr. Bohjanen seconded <br />the motion. Motion carried with Mr. Marier voting no. <br />CITY OF LINO LAKES <br />Resolution No. 32 - 87 <br />RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $1,550,000 GENERAL <br />OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1987A <br />BE IT RESOLVED by the City Council of the City of Lino Lakes, Anoka <br />County, Minnesota (City) as follows: <br />1. It is hereby determined that : <br />PAGE 5 <br />(a) the following assessable public improvements (the <br />improvements) have been made, duly ordered or contracts <br />let for the construction thereof, by the City pursuant <br />to the provisions of Minnesota Statutes, Chapter 429 <br />(Act): <br />Project Designation & Description: 1987 Improvement <br />Projects <br />Project. Costs <br />Uhde $448,343 <br />