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I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />i <br />I <br /> <br />ACCEPT PROPOSAL ON TERMS OF SALE FOR <br />$830,000 GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF <br />INDEBTEDNESS, SERIES 2001E <br /> By: Diana Lund, Finance Officer <br /> <br />Background: <br /> <br />The proposed 2002 General Fund Budget and proposed 2002 General Fund Levy was <br />adopted by City Council at its meeting of September 11, 2001. Included in the 2002 <br />proposed levy was a levy pertaining to the issuance of Capital Equipment Certificates in <br />the amount of $830,000. These certificates would be used to purchase such equipment as <br />an aerial fire truck, squad cars and snowplow truck. A copy of the proposed 2002 capital <br />equipment schedule is attached to show the items to be purchased with the certificates. <br /> <br />At the October 29, 2001, Council work session, The City's financial consulting firm of <br />Juran and Moody presented preliminary numbers regarding the certificates. The <br />certificates would be placed with a private bank in the City. The Finance Consultant was <br />to bring back final numbers to the November 13, 2001, City Council meeting. <br /> <br />Repayment of these certificates would be from property tax collections. Every year, <br />beginning with 2002 payable, approximately $190,000 would be added to the City's levy <br />as a special levy. This levy would be for five years, or through 2006 payable. <br /> <br />An example of how a residents ~roperty will be affected is as such: <br /> <br /> Additional <br /> Property Tax Property Tax Property Tax <br /> 2002 Market With Capital Without Capital With Capital <br />2001 Market Value (Avg Equip Equip Certificate Equip Certificate <br />Value 8.5% increase) Certificate Levy Levy Levy <br />$150,000 $162,750 $1,837.02 $1,809.01 $28.01 <br />$200,000 $217,000 $2,449.35 $2,412.01 $37.34 <br /> <br />Committee Action: Recommend that Council and adopt Resolution #01-11-XXX <br />attthorizing the issuance of $8'30,000 General Obligation Equipment Certificates of <br />Indebtedness, Series 200 l E. <br />Council Action: Motion to authorize the adoption of Resolution #01-11-XXX ~ <br />attthorizing the issuance of $830,000 General Obligation Equipment Certificates of <br /> <br />Indebtedncss, Series 2001E. <br />Reviewed by: <br /> <br />City Administrator <br />Finance Officer <br /> <br />-239- <br /> <br /> <br />