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City Council Regular Meeting Minutes • June 10, 1996 Page 4 1 Mr. Bob Thistle, Springsted, explained they had gone to market today on behalf of the 2 City of St. Anthony for the issuance of$1,770,000.00 General Obligation Taxable Tax 3 Increment Bonds, Series 1996A. He reported Moody's Investors Service had reaffirmed 4 the City's Al rating. Moody's comments regarding the fiscal status of St. Anthony 5 included: Excellent location providing easy access to numerous areas; Tax levies are 6 limited to sources of debt service support; and The unreserved general fund balance 7 continues to be above 30% allowing the City to fund its cash flow internally as well as 8 meet 100% of budget needs. 9 Mr. Thistle explained four bids were received today. The low.bid was received from 1.0 Cronin& Company, Incorporated in conjunction with Smith Barney and FBS Investment 11 Services, Inc. at 7.8635%. He noted the interest rate was slightly higher than was 12 anticipated four weeks ago. He explained the key reasons were that there had been very 13 little tax increment taxable debt in the market and the markets were unstable on Friday 14 and today primarily because of the anticipated unemployment rates. 15 Mr. Thistle explained the bond issue will be reduced to $1,720,000.00, which with this 16 interest rate, will allow all the bond payments to be made from the tax increment 17 revenues. He explained the City would receive their final resolution from bond counsel 1 tomorrow. This results in the City contributing a larger portion of funds up front. 19 Mr. Thistle stated it is the recommendation of Springsted that the City accept the low bid 20 of 7.8635% from Cronin& Company, Incorporated. 21 Mornson noted the City's portion of approximately $133,000.00 would be funded from . 22 the $300,000.00 the City has set aside and the 10% administrative fee. 23 Motion by Marks, second by Faust to approve Resolution 96-042,relating to 24 $1,720,000.00 General Obligation Taxable Tax Increment Bonds, Series 1996A; 25 authorizing the issuance, awarding the sale to Cronin& Company, Incorporated in 26 conjunction with Smith Barney and FBS Investment Services, Inc. at 7.8635%, fixing the 27 form and details, and providing for the execution and delivery thereof and the security 28 thereof. 29 Motion carried unanimously. 30 B. Resolution 96-037. re: Order Report on Street Improvement Project for 1997. 31 Mayor Ranallo suggested Public Works analyze the cost per mile of street projects in the 32 City and determine how the cost has changed over time. 33 Motion by Faust, second by Marks to approve Resolution 96-037, regarding ordering preparation of report on improvements to the following streets: Roosevelt Street, from