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I <br />I <br />I <br />I <br />I. <br />I <br />I <br />I <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />~ EVENSEN DODGE, INC' <br /> <br />20 February 1984 <br /> <br />Mr. Lloyd G. Schnelle <br />City Administrator <br />City of Ramsey <br />15153 Nowthen Blvd., N.W. <br />Ramsey, Minnesota 55303 <br /> <br />Dear Lloyd: <br /> <br />I am enclosing <br /> <br /> a Revised Feasibility Analysis for the advance <br />refunding of the City's 1981 Improvement Bonds.. <br /> <br />As we discussed at our last meeting, we also examined the <br />feasibility of refunding the 1982 Improvement Bonds. However, our <br />analysis showed that this issue's lack of any call provisions <br />effectively rules out the possibility of an advance refunding of <br />those Bonds. <br /> <br />The 1981 Bonds, however, continue to be excellent 'candidates for <br />refunding. The attached analysis projects slightly higher <br />savings than we had shown previously, since interest rates have <br />come down modestly since then. Under current market conditions, <br />we project total savings of approximately $44,000, with those. <br />savings accruing on an annual "uniform" basis. I have assumed <br />here the use of $72,000 in upfront monies, transferred from <br />existing balances. I realize that after the April 1st debt <br />service payment, you w~ll not have that much available in your <br />Debt Service Fund until the June tax collections. However, we <br />are recommending a sale earlier than that, to capture the current <br />market conditions. Jeanne and I therefore discussed the <br />possibility of transferring $72,000 from the General (or other) <br />Fund temporarily, to then use as transferred proceeds, <br />reimbursing the General Fund out of the Debt Service Fund's tax <br />collections this June. <br /> <br />We do suggest immediate action, to catch the market in its <br />present relatively favorable state. If authorization is received <br />from the Council at its February 28th meeting, we could sell the <br />bonds in late March, and close in late April. The monies can be <br />invested from then until your next debt service payment, on <br />October 1, 1984, at which time the Escrow Account will make that <br />debt service payment. The first debt service payment you will <br />have to make on the new refunding bonds will occur on April 1, <br />1985. <br /> <br />3608 IDS Tower, Minneapolis Minnesota 55402 <br /> <br />612/338-3535 8001328-8200 8001328-8100 Minnesota <br /> <br /> <br />