Agenda - Council - 07/28/1981 - Laserfiche WebLink

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4e: -21- always the possibility that interest rates may decrease to the point that the.dollar cost may be less (see Figure 10). When the next bond issue is sold, the Council should be ready to decide whether or not it will do any refinancing. But, a firm decision about the specific bonds to be refunded, cannot, for all practical purposes, be made until 1984. The presentation has been made at this time because the availability of the refunding opt i ons -must be a part of the planning for the borrowing for the improvements in the 1981 to 1986 Development Program. FINDINGS OF FACT AND CONCLUSIONS The MWCC has four types of debt for which it is obligated: 1. Direct debt of the Metropolitan Council and the MWCC; 2. Debt assumed by the MWCC at the time that the assets of other sewer districts and joint sewer boards were transferred to the Metropolitan Sanitary Sewer Board (later changed to the Metropolitan Waste Control Commission); 3. Local government debt; and r- t ) • 4. Current value credits, both connected with the transfer of certain local government assets and obligations. The direct debt and the assumed debt are a part of the review considerations discussed in the Investment Framework Policies 5 and 6 . The sale of any bonds for the MWCC should be reviewed in relation- ship to Procedure 9 of the Water Quality Management.Policy Plan. A substantial amount of new regional debt will be required to finance the improvements planned in the 1981 to 1986 Development Program. The superimposition of this debt over the existing debt will require an increase in debt retirement revenues. This increase may.not be acceptable to the users of the system. To moderate this increase, the Council has several options to refinance the existing debt. These refinancing options should be a part of the planning of all new bond sales. RECOMMENDATION That the Metropolitan Council staff be directed to review the possibility of refinancing the existing debt and report to the Council at the time that the MWCC requests additional bond funds. NW: sje:emp 06.04.81 EP8704