Agenda Packets - 1983/05/16 - Laserfiche WebLink

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`� , 1'01 Mayor h Council i� plioMI I Inanco Dlroctor-'rrcmnoror 11ragar DATN 1 May I I , HA I 111:1 1111:CIAI, AS;;I:;;IMLNT DI:11T :INRVICH' I I'UD1' ile, Ve l'ml of Iho CILV'a Ij, in public improvement projects were flnnneo,l by a romblo.11lon of mpvckil iu;sessmonts against benefited properly ownl-I!; '111ul a .Ioncrul Lax levy. The payments of assessments and tho colluoLlon of Chu guuural Lax levies have been used to pay principal mill InLeront on bon(.ls issued to finance construction of thouo projocln, In Chu pant) dua to favorable interest rates on investment of funds and duu Lo prepaymunL of special assessments, a portion of the orlyln,111y nolivAule,l general property tax levies have been reduced. The banln of thunn roductions have been the findings presented to this City an a feuult of special assessment debt service studies by olltsido financial consultants. The last study was performed in 1979 by Ehlers and Asuoeiates. Since that time interest rates on invest- munts have fallen as has our rate of collection on outstanding special anuoesmonts, Therefore, another study should be conducted prior to cortification of the property tax levy in October. 1 have, roquested and received a proposal for such a study from our auditors. A copy of their proposal is attached for your consideration. Tho proposal states that they will complete the study and special report for a total fee not to exceed $5,000. I have reviewed a copy of a similar report that they prepared for the City of New Brighton. That report is much more thorough and compre- honsive than the 1979 report which was prepared for us by Ehlers and AnuuclaLes. I therefnre, recommend the study beina performed by our auditors,VDeLaHUNT VOTO & CO., LTD. The auditors state on page 3 of their proposals that these services relate entirely to special assessment debt service funds of the City. Accordingly the cost of such a report could be charged entirely to a closed bond fund rather than the operating funds (general fund) of the City. The water works improvement bond fund of 1960 is presently a closed bond fund as all outstanding bonded indebtedness of the fund has been retired. As of December 31, 1982 the fund had cash and in- vestments of $19,428. I would recommend that the cost of the special assessment dedt service study be paid for from that fund. I would appreciate Council direction on this matter. Should be have any questions do not hesitate to contact me. `DB/ds `iw/, Enclosure: May 9, 1983 proposal from DeLaIIUNT VOTO & CO. LTD.