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<br />r I ~'\( <br />. ( II <br />~l}{ River <br /> <br />**CONSENT ITEM 5.6.** <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 />OCTOBER 11, 1994 <br /> <br />SUBJECT: RESOLUTION AWARDING THE SALE <br />OF THE CITY'S $83,500 GENERAL <br />OBLIGATION EQUIPMENT <br />CERTIFICATE OF 1994; FIXING ITS <br />FORM AND SPECIFICATIONS; <br />DIRECTING ITS EXECUTION AND <br />DELIVERY; AND PROVIDING FOR ITS <br />PAYMENT <br /> <br />. <br />. <br /> <br />The 1994 budget authorized the issuance of equipment certificates to fund <br />various public works, emergency preparedness, and police equipment. A tax <br />levy in the amount of $28,000 was certified for taxes payable in 1994 for <br />payment of the 1994 equipment certificate. <br /> <br />Due to the lateness of the issue of this equipment certificate, it was decided <br />that the tax levy would be used to write down the amount of the certificate <br />rather than to pay for future debt service. This means that the equipment <br />certificate will be in the amount of $83,500. The remainder of the equipment <br />will be purchased with the tax levy funds to be collected in 1994. The <br />equipment certificate will again be purchased by the Bank of Elk River at an <br />interest rate of 5.5 percent. The certificate will mature on February 1, 1999. <br /> <br />RECOMMENDATION <br /> <br />The City Council is asked to adopt the attached resolution Awarding the Sale <br />of the City's $83,500 General Obligation Equipment Certificate of 1994; <br />Fixing its Form and Specifications; Directing its Execution and Delivery; and <br />Providing for its Payment, in order to finance capital equipment as approved <br />in the 1994 budget. <br /> <br />. <br />. <br /> <br />P.O. Box 490 . 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br />