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For Council's review, I have attached a budget schedule which incorporates the recently <br /> approved Contract Amendment #4 ten year budget and the fund balance necessary ($4,000,000 <br /> plus) to accomplish our financing goals. Currently, we are $211,488 ahead of the 1992 <br /> estimated fund balance. Also, the spread sheet clearly shows we are on target with our <br /> projections. <br /> Upon further review with the City's financial advisor (Bob Thistle), we agree it remains prudent <br /> to pay off debt which is now due. Based on current interest rates, it is a good time to borrow <br /> money. However, as'good as the rates are for borrowing, the rate of return is equally as bad. <br /> Refunding expenses of approximately $20,000 reduces or eliminates the possibility of it being <br /> advantageous to refinance. <br /> In addition, I checked with Jerry Gilligan from Dorsey & Whitney and he concurred the intent <br /> of the original bond issue was to pay off the debt with the proceeds from the Army settlement. <br /> RECONMIENDATION: <br /> Council approve payment of $1,185,000 to Norwest Bank Minnesota. These funds are <br /> scheduled for wire transfer 5 days prior to the due date of 7/1/93 from 4/M Fund #010175 <br /> St. Anthony Water Filtration Investments to Norwest Bank. <br /> • <br />