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John Litchter from the Park and Recreation Board came before the City Comncil <br />and discussed bond issue rate figures showing figures for now and one year <br />from now and gave all the councilmembers a chart showing approximately the <br />annual cost now and one year from now. (See attached chart) <br /> <br />Mr. Donovan suggested to the Council recinding the 8% motion. He stated <br />from the park board's point of view this is not a realistic figure and in <br />order to guarantee fiscal flexability so we do have the option to decide if <br />the bonds sell at 8 or 8.75%, it would be foolish to proceed with the 8% figure <br />and that the park board feels th±s would be misrepresenting the public and <br />the park board would not want any part of this if the rate is at 8% and the <br />Council would have to proceed on its own if the 8% rate is not recinded. <br /> <br />Mayor Gamec stated he had checked with Springstad and 8.5% is a realistic <br />rate and the council would make the decision as to what the right price would <br />be. <br /> <br />Councilman Sorteberg agreed with Mr. Donovan that we need to be fair in representing <br />the approximate cost of the bond rate, however, Mr. Sorteberg could not agree that <br />that the rate must be higher. He stated we don't have to sell the day after it <br />is approved. We will be investing some of the money and will end up with <br />interest above the bond interest rate hopefully. <br /> <br />Councilman Reimann inquired as to the effect on businessses. <br /> <br />Mayor Gamec stated the original feasibility study included a business sheet <br />price list. <br /> <br />Mr. Donovan did not know what the cost to the businesses would be at present. <br /> <br />Councilman Cox stated business taxes have just skyrocketed already, makes <br />business tough to keep in. We are a representative government. I have been <br />supportive of recreational projects in the past and we must now recognize <br />current economics. <br /> <br />Councilman Sorteberg inquired who determines how fast the project goes. <br /> <br />Mr. Donovan stated the co~ncil and city engineer would. <br /> <br />Cou~cilman Reimann stated for confirmation the election date would be <br />around April 21 to 28. <br /> <br />Councilman Reima~n stated because of economy he feels this project should be <br />tabled for 6 months. It would not hurt our program and would be in the best <br />interests to see what happens in the near future. <br /> <br />Motion by Councilman Reimann and seconded by Councilman Cox to table the <br />proposed park improvement bond issue for 6 months. <br /> <br />Discussion: Councilman Cox stated inflation increases everything. Councilman <br />Reimann stated there are maintenance and additional costs involved. Cox stated <br />there would be added costs for maintenance of these facilities. Sorteberg <br />inquired as to what percentage of children from Ramsey are involved in the <br />different rec programs now. Game¢ stated the ground work should be done now, <br />keep construction costs down. <br /> <br />C/March 10, 1981 <br /> 4 <br /> <br /> <br />