Agenda - Council - 11/27/2001 - Laserfiche WebLink

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the sale of tax increment bonds. At the October 29, 2001, Council work session the City's financial consulting firm of Juran and Moody presented preliminary bond numbers and was authorized to sell the bonds through the process known as a negotiated bond sale, and bring the results back to the November 13, 2001 CitY Council meeting. The issuance of bonds will be as such: $1,220,000 will be sold for the purchase of land. These bonds will be taxable as land acquisition cannot be purchased through tax-exempt bonds. $1,045,000 will be issued for the public improvements of water, sewer, street, and storm sewer. As these are improvements, tax- exempt bonds are allowed to be issued for their funding. Repayment of these bonds will be made with the increment collected in Tax Increment District #10. Juran and Moody representative presented and reviewed the debt service schedules for both the series 2001C and 2001D bonds. Councilmember Zimmerman inquired as to what would prevent the City of Ramsey from increasing their rating. Juran and Moody representative replied that a breakdown in the overall fund balance or if the overall downfall of the economy hits the Midwest and growth comes to a halt the City could be warned of a possible downgrade. Motion by Mayor Gamec, seconded by Councilmember Kurak, to recommend that the City Council accept terms of bond sale and adopt Resolution # 01-11- awarding the sale of $1,220,000 General Obligation Taxable Tax Increment Bonds. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Kurak, Anderson, Hendriksen, and Zimmerman. Voting No: None. Motion by Mayor Gamec, seconded by Councilmember Kurak, to recommend that the City Council to accept terms of bond sale and adopt Resolution #01-11-__ awarding the sale of $1,045,000, General Obligation Tax Increment Bonds, Series 2001C. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Kurak, Anderson, Hendriksen, and Zimmerman. Voting No: None. Case#3: Accept Proposal on Terms of Sale for $830,000 General Obligation Equipment Certificates of Indebtedness, Series 2001E Councilmember Kurak stated that after meeting with the Finance Officer to discuss the Equipment Revolving Fund it was discovered that there is extra interest earnings in the Fund and the question was brought up as to why the City would not pay for the equipment by using the excess funds. Staff came to the conclusion that there is a policy in place in regards to the Equipment Revolving Fund that was implemented in 1993 and part of that policy states that "Fund balance shall be increased and maintained at a minimum level equal to one hundred Finance Committee/November 13, 2001 Page 3 of 6 -47-