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I <br /> I <br /> I <br /> i <br /> I <br /> I <br /> I <br /> I <br /> i <br /> I <br /> I <br /> I <br /> I <br /> I <br />I <br /> I <br /> <br />7/1/84, and will require first interest payment on 4/1/85. In <br />both cases, this first interest payment has been capitalized in <br />the principal size, until the City receives its first tax <br />settlement from the 1984 Levy. A discount of approximately 1.6% <br />will be offered to the competing underwriters, as a marketing <br />incentive, and to reduce coupon payments. <br /> <br />I don't recommend that the City apply to Moody's for a rating on <br />these issues, given their size and the informal nature of the <br />sale. However, for the City's proposed sale of bonds this summer <br />for the sewer/water project, I will be recommending a rating <br />request, at which time we can again discuss the feasibility of <br />requesting a rating upgrading. <br /> <br />Sale dates of either June 19 or June 26 were discussed. The <br />Council has a regular meeting on June 26; a June 19 sale would <br />necessitate calling a special meeting. On the other hand, the <br />earlier you sell the issues, the more investment income you can <br />earn until you need to make payments to contractors and <br />suppliers. In either case, I will deliver sealed competitive <br />bids to you on the sale date, for Council action that evening. <br /> <br />An informal competitive sale is conducted very similar to a <br />formal competitive sale. The main differences are that, first, <br />there is no requirement to publish a Notice of Sale, and second, <br />we will prepare a less complete and formal Offering Memorandum. <br />I will be contacting local underwriters and banks a week prior to <br />the sale, and will discuss their possible interest directly with <br />them. Since these are general obligation issues (which means the <br />banks may bid on them) and are relatively short issues, and <br />since the City has a good underlying bond rating and reputation, <br />I feel confident that we will experience an excellent response to <br />these offerings. <br /> <br />I will be contacting Dave Kennedy, your bond counsel, today and <br />he will prepare an authorizing resolution, for the Council to act <br />on at its May 24 meeting. <br /> <br />I hope this Analysis sufficiently <br />financings. Please feel free to call <br />have further questions or suggestions. <br />successful sale in June. <br /> <br />summarizes the proposed <br /> me at any time, if you <br /> I look forward to a <br /> <br />Best Regards, <br /> <br />Don Keysser <br />Senior Financial Analyst <br /> <br /> <br />