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COMMITTEE BUSINESS <br /> <br />Case #1: Adopt Resolution Approving the City of Ramsey's 2004 Budget Calendar <br /> <br />Finance Officer Lund stated that the Ramsey City Charter states that a budget calendar shall be <br />established annually by resolUtion. A calendar was presented to the Committee for <br />consideration. <br /> <br />Motion by Councilmember Elvig, seconded by Councilmember Cook, to recommend that the <br />City Council adopt the resolution approving the City of Ramsey's budget calendar. <br /> <br />Motion carried. Voting Yes: Mayor Gamec, Councilmembers Elvig, Cook,. Kurak, Pearson, <br />Strommen, and Zimmerman. Voting No: None. <br /> <br />Case #2: <br /> <br />Authorizing Issuance and Awarding the sale of $945,000 General Obligation <br />Tax Increment Refunding Bonds of 2003 <br /> <br />Finance Officer Lund stated that in 1993, bonds were issued in the amount of $2,225,000 for <br />improvement projects within TIF District #1. The amount of principal remaining on this bond <br />after a February 1, 2003 bond payment is $925,000. It has been recommended that the City <br />refund this bond at this time due to present interest rates being so low. In refunding, new debt is <br />issued to obtain the current rate of interest and replace the old bond issue. The City would save <br />about $41,000 in interest costs with the lower rates. <br /> <br />Paul Donna, Northland-Securities, explained that with every bond issue they apply a credit <br />rating on the bonds to make the bonds more marketable and reduce the rates. In this case, the <br />City received an A-1 rating, which is a high quality rating for a community the size of Ramsey. <br />He presented a chart identifying the proposed interest rates for refunding for the Committee's <br />review. <br /> <br />Councilmember Kurak inquired if there are other bonds the City currently has that they Could <br />refinance in the future. <br /> <br />Mr. Donna explained that this is the only bond that the City is able to refinance at the current <br />time. The City's remaining outstanding bonds have clauses that state that the allowable dates for. <br />these issues are in the future. They will continue to monitor those bonds and 'notify staff when it <br />is possible. <br /> <br />Councilmember Elvig inquired as to what rates the City currently has on other bonds, <br /> <br />Mr. Donna replied that the rates range frOm four to five percent. <br /> <br />Finance Committee/January 14, 2003 <br /> Page 2 of 5 <br /> <br /> <br />