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. . . . <br /> SPRXNGSTED <br /> puBu/c sz�s <br /> 61:2 2-,3r)� <br /> May |7, |98B <br /> Mayor Robert Sund|ond <br /> Members, City Council <br /> Mr. David Childs, AHonoQer <br /> St. Anthony City Hall <br /> 3301 Silver Lake Road <br /> St. Anthony, kAN 55418 <br /> RE: Recommendations for the |samzncc of $875,000 General Obligation-Revenue <br /> Water System Bonds, Series | 988A <br /> We respectfully request your consideration of our recommendations for the issuance <br /> of these bonds. The proceeds of the bond issue will be used to finance the costs of <br /> installing o temporary water-filtration system and to fund legal and consulting fees <br /> the City has incurred and anticipates incurring prior to final disposition of litigation <br /> with the United States Army. The bond issue consists of the following components: <br /> Construction/Lease $450,000 <br /> Current legal and consulting|fi fees 200,000 <br /> Future legal and consulting fees 200,000 <br /> Bond discount 13, 125 <br /> Costs of issuance 11 ,875 <br /> Total bond issue $875,000 <br /> Mr. Childs has- advised us the City will enter into u leasing contract for o carbon <br /> filtration system which will serve as o temporary treatment facility until EPA <br /> completes construction of o new filtration plant. The estimated cmaf of the lease, <br /> plus the costs of o concrete pod and building are estimated at <br /> L `-�4SO'OOO. Ve are also <br /> advised the City has incurred legal and consulting expenses totaling approximately$20O,0OO to date. Mr. Childs anticipates the continued litigation will amount <br /> to <br /> another °20C,OO� of costs until final settlement with the Army. The problem has <br /> been created by ground water pollution caused by the Army munitions plant located <br /> in Arden Hills. The Army has agreed to settlements with some of the neighboring <br /> communities and if is expected that the City �|| reach agreement with the Army <br /> prior fo the maturity of these bonds. <br /> ' <br /> We are recommending the City issue [opifo} Appreciation Bonds (CAB's) for this <br /> project. CAB's are sometimes referred to as "Zero Coupon Bonds," which pay no <br /> interest until maturity. The bonds are offered of o discount to the purchaser who <br /> holds that bond and receives his principal and interest of maturity. This provides the <br /> *o-,co,s.no:.rr: <br /> :-�orir imn­-.;s suo� `710 Grove Po&d.Suite <br /> �� <br /> �'J.ara4c20­e4z Elm Gme%,Vuconsinuo�oz-onor <br /> �rzsrzrzs I x`rez�ozzz <br /> r�x317-237-35z9 Fay. X-1-782-2904 <br />