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Councilmember Schlueter - Aye <br />Councilmember Reimann - Aye <br />Mayor Heitman - Aye <br />Councilmember Sorteberg - Aye <br />Councilmember Cox - Naye <br /> <br />Motion failed.~ , ~'3~3~'~ <br />Councilmember ~g completed the reading of the proposed resolution, f~- <br />Mr. Wayne Burggraaff of Evensen Dodge was present and stated that in the <br />summer of 1984 Ramsey City Council authorized issuance of a similar refunding <br />bond and Evensen Dodge proceeded; the market went bad and Evensen Dodge <br />recommended cease of sale. Mr. Burggraaff stated that the market is now good <br />again and after discussions with Ramsey City Staff it has been determined that <br />it is appropriate to make another effort to do the refunding; the terms of the <br />sale are the same as they were last summer. Mr. Burggraaff stated that there <br />would be a savings of $30,000-$35,000 over the remaining life of the refunding <br />bonds. Mr. Burggraaff stated that the market will be watched closely this <br />week and if it stays good, the sale will proceed; if not, the sale will be <br />delayed a month or two. Mr. Burggraaff stated that the sale date is scheduled <br />for February 27. <br /> <br />Mr. Wayne Burggraaff stated that the City's bond rating now is BAA1; after <br />discussions with Mr. Schnelle and Ms. Haapala it has been determined that the <br />City has a good opportunity to improve it's rating to A. Moody's Investors <br />Service, the rating agency, looks at: 1) Financial Condition - which is good <br />in Ramsey; 2) Financial Management - Ramsey does have professional management <br />with a preliminary approved 5 year capital improvement plan and a certificate <br />of conformance; 3) Outstanding Debt - Ramsey's is about average with a very <br />agressive retirement of that debt. All of Ramsey's present debt would be <br />retired in about 10 years and 75%-80% of that would be retired in 5-6 years. <br />4) Economy of the Area - County figures regarding employment, unemployment, <br />valuation, etc. are good. ~he Minnesota Financial Health Report on Ramsey <br />also looks good. <br /> <br />Mr. Burggraaff stated that getting the bond rating changed is done by <br />application or by way of a personal visit to Moody's in New York. Mr. <br />Burgraaff stated that Council should keep in mind that the City can recover <br />the cost of sending a staff person to New York if the bond rating change is <br />done in conjunction with the bond sale. Mr. Burggraaff stated that the City <br />has a better chance to obtain a rating change with an in-person application. <br /> <br />Motion by Councilmember Reimann and seconded by Councilmember Cox to adopt <br />Resolution #85-29 authorizing the sale of general obligation refunding bond to <br />replace the 1981 general obligation improvement bond. (Please refer to <br />resolution file for Resolution #85-29). <br /> <br />Motion carried. Voting Yes: Mayor Heitman, Councilmembers Sorteberg, Cox, <br />Reimann and Schlueter. Voting No: None. <br /> <br />Mr. Schnelle stated that if the Council decides to go for a bond rating <br /> February 12, 1985 <br /> <br />Page 15 of 16 <br /> <br /> <br />