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<br />rei ---\) <br />( )j <br />~li{ <br /> <br />AGENDA ITEM 3.2. <br /> <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />MAYOR & CITY COUNCIL <br />LORI JOHNSON, FINANCE DIRECTOR ",,,;;; <br /> <br />FROM: <br /> <br />DATE: <br /> <br />MAY 19, 1994 <br /> <br />SUBJECT: RESOLUTIONS PROVIDING FOR THE <br />ISSUANCE AND SALE OF THE CITY'S <br />$3,495,000 G.O. IMPROVEMENT <br />BONDS, SERIES 1994A; THE CITY'S <br />$1,280,000 G.O. SEWER REVENUE <br />BONDS, SERIES 1994B; AND THE <br />CITY'S $1,080,000 G.O. STORM SEWER <br />REVENUE BONDS, SERIES 1994C <br /> <br />e <br /> <br />Bids for the bonds mentioned above will be accepted until Monday, May 23, <br />1994, at the offices of Springsted. David Drown of Springsted will be in <br />attendance at Monday's meeting to present the bid tabulation and <br />recommend the award of the sale of the bonds. A resolution awarding the <br />sale of each of the bonds is attached for your review. <br /> <br />As you may be aware, Mayor Duitsman and I had a teleconference with <br />Moody's Investor Service regarding the rating of these three bond issues. <br />The teleconference lasted approximately two hours, and I believe it was very <br />successful. Attached you will find a copy of Moody's Daily Rating Recap <br />which is a brief listing of the items considered by Moody's. Moody's rated the <br />bond issues Baal. It was their feeling that the City has continued to make <br />progress in building its reserves and its General Fund balance. However, <br />due to the growth in the City, we do and will continue to have a large amount <br />of special assessment debt. This, plus the overlapping debt (debt issued by <br />the County and School) will continue to be negative factors affecting the <br />City's bond rating. This overlapping debt becomes a debt burden on all <br />residents of the City and it is that total debt burden that Moody's looks at <br />when evaluating our rating. <br /> <br />RECOMMENDATION <br /> <br />The Council is asked to approve the three resolutions which will issue and <br />award the sale of each of the bond issues. <br /> <br />e <br /> <br />P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br />