Agenda - Council - 03/27/1984 - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I ~ EVENSEN DODGE, INC. FINANCIAL CONSULTANTS March 27, 1984 Mayor Thomas Gamec and Members of the City Council City of Ramsey 15153 Nowthen Boulevard Ramsey, Minnesota 55303 Dear Mayor Gamec and Members: I had the pleasure of appearing before you this past February 28 to propose that the City issue General Obligation Refunding Bonds to advance refund the City's 1981 Improvement Bonds. Since that time, we have continued to closely monitor trends in the munici- pal financial markets. In those four weeks, interest rates have steadily climbed upwards. The attached chart shows the weekly Bond Buyer's Index, a composite index that measures overall mar- ket yields on long-term municipal G.O. Bonds, and illustrates this upward trend. Since advance refundings are very sensitive to fluctuations in interest rates, our concern in monitoring these trends has been to ensure that the proposed refunding for the City of 'Ramsey con- tinue to be viable. Unfortunately, the consistent increase in interest rates since February 28 has reduced the feasibility of this bond issuance, and we have recommended a postponement of the sale to Lloyd Schnelle and Jeanne Moen. Should interest rates come down again this summer, we will again suggest consideration of this issuance. As I indicated to you on February 28, the City has no obligation regarding this sale until the sale is actually awarded. We assume all risks and expenses until that time. Since no sale has occurred at this time, the City has no financial obligation or expenses. It has been a pleasure working with Lloyd and Jeanne on this project, and we look forward to a continuing involvement in the City's growth as you consider future financing needs. Yours~ , EVENSE~ DODGE, INC. Senior Financial Analyst 360{3 IDS Tower, Minneapolis Minnesota 55402 612/338-3535 800/328-8200 800/328-8100 Minnesota