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• <br /> MEMORANDUM <br /> DATE: July 23, 1992 <br /> TO: Thomas D. Burt, City Manager <br /> FROM: Roger Larson, Finance Director <br /> ITEM: RESTRUCTURE LIQUOR REVENUE BONDS <br /> In 1987, the City of St. Anthony sold $690,000 of Liquor Revenue Bonds to fund <br /> improvements to the City's liquor operation. ;These bonds have an interest rate of 7.00% <br /> in 1993 and continue to escalate upwards to a high of 8.00% in 1997 & 1998. <br /> Council has directed staff to monitor all existing debt and seek refinancing (refunding bonds) <br /> for the original issue if there is a savings for the City to do so. <br /> • I concur with Springsteds analysis and agree that current market conditions are such (interest <br /> rates the lowest they have been in 19 years) that refinancing significantly reduces the total <br /> payment St. Anthony would have to make to retire the liquor revenue bond debt. <br /> Refinancing Overview <br /> 1) $47,631.25 less cash is paid out over the life <br /> of the bonds. (See attached sheet) <br /> 2) Time frame of debt service payment is equal <br /> to the original issue. <br /> 3) Current net savings of rebonding = $19,315.82 <br /> 4) Cash outlay = $ 69,000 dollars. The payment is <br /> made from reserves currently set aside for the issuance of <br /> the original debt. <br /> 5) Reduces the reserve funding requirements for these <br /> bonds. <br /> 6) Reduces rate of interest (4.10% to 5.10%). <br /> • <br />