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I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I$ <br />I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> <br />I <br />i$ <br /> <br />in the Equipment Replacement Fund and make a transfer to the City's Administrative Trust <br />Fund for planning assistance. <br /> <br />Motion carried. Voting Yes: Mayor Gilbertson, Councilmembers Zimmerman, Beyer, <br />Hardin and Peterson. Voting No: None. <br /> <br />Discussion ensued regarding the Landfill Expendable Trust Fund and spending the interest <br />on park capital improvements. <br /> <br />Motion by Councilmember Beyer and seconded by Mayor Gilbertson to recommend that <br />City Council designate the interest earnings from the Landfill Expendable Trust Fund in the <br />approximate amount of $120,000 per year for the years of 1993, 1994 and 1995 to fund <br />capital improvements for parks. <br /> <br />Motion carded. Voting Yes: Mayor Gilbertson, Councilmembers Beyer, Hardin, Peterson <br />and Zimmerman. Voting No: None. <br /> <br />Case W2: 1987 General Obligation Tax Increment Bond Issue <br /> <br />Finance Officer Helling stated that Mr. Bob Thistle, Vice President of Springsted, Inc., the <br />City's current financial advisor, has from time to time presented net savings information for <br />crossover advance refunding of the City's General Obligation Tax Increment Bonds, Series <br />1987A. Similar information was received from Monte Eastvold, Public Finance Advisor, <br />Juran & Moody, Inc. Mrs. Helling explained what the Series 1987A Bond is and stated <br />that the City may elect on February 1, 1996, and any interest payment date thereafter, to <br />prepay Bonds due on or after February 1, 1997. If redemption is in part, those bonds <br />remaining unpaid which have the latest maturity date (and for this issue, the highest interest <br />rate) will be prepaid first. The last payment date for this issue is in the year 2007. A <br />refunding of this issue would result in a new issue call date in the year 2000 with the <br />prepayment available in 2002 and thereafter. Mrs. Helling stated that Staff has reviewed all <br />the information received and due to the decline in the municipal bond market interest rate, <br />refunding the 1987A issue in the current market would offer a present value savings of <br />approximately $145,000. These savings are based on the assumption the City does not <br />intend toprepay all or any portion of this issue. Mrs. Helling stated, based on her review, <br />the City would be in a position to prepay $1 million and partially decrease the 1987A issue. <br />This would reduce the remaining principal balance from $2,495,000 to a $1,495,000 <br />refunding. In addition, depending upon the interest earnings from the City's investments <br />in the future, the City may choose to authorize an inter-fund loan from a trust or some other <br />fund to provide full prepayment of the 1987A issue. She stated that Staff and the Finance <br />Committee should review all outstanding debt service, call dates, and available or <br />forecasted fund balances. She added that as the market is not expected to change <br />significarltly over the next few months, the time required for Staff to provide this overall <br />review should not adversely impact any refunding decisions that result from this review. <br /> <br />Consensus of the Finance Committee was to schedule an outstanding indebtedness and tax <br />increment review for the Finance Committee meeting of April 27, 1993. <br /> <br />ADJOURNMENT <br /> <br />Motion by Councilmember Hardin and seconded by Councilmember Beyer to adjourn the <br />meeting. <br /> <br />Motion carded. Voting Yes: Mayor Gilbertson, Councilmembers Hardin, Beyer, Peterson <br />and Zimmerman. Voting No: None. <br /> <br />Finance Committee/March 9, 1993 <br /> Page 2 of 3 <br /> <br /> <br />