08-12-1985 CC MIN - Laserfiche WebLink

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~ City Council Minutes August 12, 1985 Page Four Mayor Hinkle inquired whether there was any way to obtain tax increment from another area. Councilmember Gunkel suggested looking at the Tescom expansion to use for tax increment financing. Mr. Ron Langness stated that there is no basis for deferrment of assessments once the improvements are in. The Council continued its discussion of the feasibility study. The repre- sentatives from the Investors Group stated that they would address the issue with their board and return to the Council with their comments. 6. Resolution Accepting Bid, Authorizing Issuance and Establishing Terms For $2,640,000 General Obligation Refunding Improvement Bonds, Series 1985 Mr. Ron Langness noted that the estimated interest rate for this issue was established at 8.24% and that the actual came in at 8.06% which also includes the new money for the Ridgewood Bituminous Overlay Project. He pointed out that the refunding issue means a savings to the City, of $452,000. .. He noted that the original estimated savings was $373,000. He added that these figures are still estimates since government securities will have to be purchased to accomplish the project. COUNCILMEMBER SCHULDT MOVED TO ADOPT RESOLUTION 85-32 A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $2,640,000 GENERAL OBLIGATION REFUNDING AND IMPROVEMENT BONDS, SERIES 1985. COUNCILMEMBER GUNKEL SECONDED THE MOTION. THE MOTION PASSED 5-0. 7. Resolution Accepting Bids, Authorizing Issuance and Establishing Terms For $850,000 General Obligation Tax Increment Bonds, Series 1985-A Mr. Langness stated that the estimated interest cost on this issuance was 8.7% and that the actual interest rate was 8.39%. As a result, he pointed out the City is saving $24,000 on this issuance. COUNCILMEMBER ENGSTROM MOVED TO ADOPT RESOLUTION 85-29 A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $850,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1985A. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED 5-0. 8. Resolution Accepting Bid, Authorizing Issuance and Establishing Terms for $130,000 General Obligation Tax Increment Bonds, Series 1985-B Mr. Langness pointed out that the original interest rate was estimated at 8.72% and that the actual interest rate on this issuance is 8.40%. COUNCILMEMBER WILLIAMS MOVED TO ADOPT RESOLUTION 85-31 A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $130,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1985-B. COUNCILMEMBERENGSTROM SECONDED THE MOTION; THE MOTION PASSED 5-0. Recess The Elk River City Council recessed at 10:10 p.m. and reconvened at 10:20 p.m.