08/12/1996 Council Minutes - Laserfiche WebLink

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COUNCIL MINUTES AUGUST 12, 1996 • Following additional discussion, it was agreed that Ms. Vaske, Director of Finance, should • • provide Council with detailed explanations of the various budget adjustments. Council Member Kuether then asked about accounting for the additional $40,000 in revenue proposed by the amended budget. Mr. Schumacher explained that this would be maintained within a separate account, and used for cable equipment, etc. Mr. Schumacher indicated that the detailed explanation would include a breakout of these figures. Council Member Bergeson moved to adopt Resolution No. 96 - 93, and to request a detailed report from Mr. Schumacher as to salary reserve and cable revenue/expense. Council Member Kuether seconded the motion. Council Members Kuether and Lyden emphasized the necessity to fully understand the origin of the budget figures. Motion carried unanimously. Resolution No. 96 - 93 can be found at the end of these minutes. Consideration of Resolution No. 96 - 89 Setting Sale for Issuance of $4,685,000 General Obligation Improvement Bonds, 1996A - Mr. Schumacher stated that in addition to the written summary provided to Council, Mr. Jerry Shannon of Springsted, Inc. was available to respond to any questions regarding this proposal for sale of general obligation improvement bonds, the proceeds from which would be used to fund the following: 4th Avenue Trunk Utility Improvements Cedar Street Lift Station Trapper's Crossing Street and Utility Improvements Centennial School Street and Utility Improvements Pheasant Hills Preserve, 7th Addition Marshan Lake Condominiums Mr. Shannon addressed Council, reminding the group of his firm's previous capital financing advisory service to the City. He explained that the costs of the above -referenced projects will be assessed in part against benefited properties, with some costs paid through the Area and Unit Fund. In the past the City has issued three-year temporary improvement bonds, which has been a concern of the rating agency. In order to maintain the City's standing for repayment for improvements as they become due, the issue has been structured so that assessments will be spread over a 15 -year period of time so that as property develops there will be significant prepayments of assessments. The bond issue has been structured over a 10 -year period, assuming that assessments will be payable over the 10 -year period. Additionally, Mr. Shannon pointed out that within 5 years the City will be able to call and repay the remainder of the bond issue portion, making for a definitive bond issue. This aggressive payment program provides,