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MEMORANDUM <br />TO:. Budget Committee Consent Agenda for 10/6/92 <br />CE: Rya~ Schroeder, City Administrator <br />FROM: Sandlra Ashley Helling, Finance Officer <br />DATE: October 1, 1992 <br />SUBJECT: REFUNDING OF 1987A GO TAX INCREMENT BOND ISSUE <br /> <br />Bob Thistlel SPringsted Financial Advisor, contacted staff a few weeks ago to <br />discuss the ~oSs~ble refunding of a 1987 tax increment bond issue. Last week Mr. <br />Thistle statefl h~ felt the time was right to move ahead with this refunding due to <br /> I i[ <br />favorable marke, rt conditions. I asked him to provide a recommendation for our <br />Budget Committi~e to review. <br /> <br />The net int~res~ rate on this $2,800,000 issue is 7.05%; however, the rate varies <br />annually. F~ ttiis particular twenty year issue, the City's interest rate for 1992 is <br />5.50%, 1993 is!5.75%, and the interest rate continues to increase to a 7.30% for <br />2006 and 2~)07. <br /> <br />Upon furthe~ eSamination of the current market, Mr. Thistle has now advised the <br />conditions db not warrant a significant enough savings to enter the market. Staff is <br />in agreemeltt. <br /> <br />r <br /> <br /> <br />