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SPRINGSTED <br /> <br />PUBLIC FINANCE ADVISORS <br /> <br /> Home Office <br /> 85 Eas~ Seventh Place <br /> Suite 100 <br />Sainl Paul, MN 55101-2143 <br />(6~2) 223-3000 <br /> Fa:,: (612) 223 3002 <br /> <br />August I7, 1993 <br /> <br /> Suae 2500 <br />Mmneapohs, MN 55402-1800 <br />(612)333-9177 <br /> Fax: (812) 349-5230 <br /> <br />16655 West Bluemound Road <br />Suite 290 <br /> Brookfleld, WI 53005-5935 <br /> (414) 782-8222 <br /> Fax: (414) 782-2904 <br /> <br /> 6800 College Boulevard <br /> Suile 600 <br />Overland Parr,, KS 66211-1533 <br />(913) 345-8062 <br /> Fax: (913) 345-1770 <br /> <br /> 1800K Stree~ NW <br /> Suite 831 <br />Washinglon, DC 20006-2200 <br />(202) 466-3344 <br /> Fax: (202) 223-1362 <br /> <br />Ms. Jessie Hart, Finance Officer <br />City of Ramsey <br />15153 Nowthen Blvd., N.W. <br />Ramsey, MN 55303 <br /> <br />Dear Ms. Hart: <br /> <br />In the process of reviewing your 1987A General Obligation Tax Increment Bonds for possible <br />refundin9, I also reviewed the status of all of your outstanding debt to determine if there are any <br />other issues you might want to consider calling and paying off at this time. <br /> <br />After discussing this with you and receiving your debt service cash analysis of afl of your <br />existing debt, it appears that the following bonds should be called and paid off at their next call <br />date. The bonds in question are: <br /> <br /> Date to <br /> Prin. Cash Call Initiate <br />Issue Payoff Available Date Call <br /> <br />$170,000 1984 $20,000 $19,926.00 10-01-93 Immed. <br />Imp. Bonds <br /> <br />$660,000 1985 $30,000 $234.979.93 02-01-94 11-01-93 <br />Imp. Bonds <br /> <br />It would be our recommendation that these bonds be paid off on their next call date as the <br />interest you are currently paying on those bonds is significantly higher (9.6394% in the case of <br />the 1984 bonds and 7.14750% in the case of the 1985 bonds), than the interest you are <br />receiving currently on your invested proceeds. The slight cash shortfall you have on the 1984 <br />bond payoff can be covered from unreserved debt funds, i.e., your 1982 excess bond reserve. <br /> <br />In addition, we discussed how the City should utilize the excess unreserved debt service <br />proceeds from the various bond issues which have been paid .off. The City could utilize these <br />funds to establish a capital improvement revolving loan fund. This type of fund is used by <br />many communities in the metropolitan area to finance small capital improvement programs <br />which costs are then specially assessed back to the appropriate properties. They could also <br />be used to cover capitalized interest or expenses incurred on a project prior to the issuance of <br />long-term debt. In other words, these funds are used as working capital for your smaller capital <br />projects and allow the City to avoid paying interest or borrowing money for such costs. In <br /> <br /> <br />