Agenda Packets - 1991/01/22 - Laserfiche WebLink

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VOTO, TAUTGES, REDPATH & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS 1:K., 1- Birch Lake Professional Building • 1310 E. Hwy. 96• White Bear Lake, MN 55110 • Fax(612)426-5004 • Phone(612)426-3263 ROBERT).VOTO,CPA ROBERT G.TAUTGES,CPA • Donald Brager,Finance Director JAMES S.REDPATH,CPA Cityof Mounds View D.DAVID GEORGE,CPA DAVID i.MOL,CPA 2401 Northeast Highway 10 Mounds View, MN 55112 Dear Don: As you have requested, we have updated the financial projections of the City's Water Enterprise Fund based on different levels of bonding and reviewed the impact of this bonding. The projections were prepared based on construction cost estimates provided by the City Engineer as follows: Scenario#A Scenario#B Construction Costs: Base Projects: Test well at well#4 $18,000 $18,000 New treatment plant 1,350,000 1,350,000 Remodel plants 2& 3 500,000 500,000 Group A Projects: Diesel generator 80,000 80,000 Highway 10 crossing 125,000 125,000 Group B Projects: Redevelop well#4 50,000 Transmission line 126,000 Total Construction Costs 2,073,000 2,249,000 Estimated Bonding Costs: Issuance fees 27,000 27,000 Discount 27,500 30,000 Capitalized interest 72,500 84,000 Total Estimated Bonding Costs 127,000 141,000 Total Estimated Bond Requirements $2,200,000 $2,390,000 The projections were based upon the same assumptions used in the preparation of the Utility Rate Study issued in January 1990 which included the following: • Debt service payments were based on 20 year bond issue at 7% interest with level annual payments • Investment interest at 7% per year. • • Bonds issued January 1, 1991 and expenditure of all proceeds during 1991. MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS•PRIVATE COMPANIES PRACTICE SECTION MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MUNICIPAL FINANCE OFFICERS ASSOCIATION •MINNESOTA ASSOCIATION OF SCHOOL,BUSINESS OFFICIALS