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7.7. SR 12-21-2009
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7.7. SR 12-21-2009
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by the City's full faith and credit, which is expected to produce lower <br />interest rates on the CIP Bonds compared to the Series 2002A and Series <br />2002B Bonds. <br />Issuance of the CIP Bonds is not expected to affect the City's overall debt in <br />any significant way, other than through lowering debt service costs. <br />Relative Costs and Benefits of Alternative Uses of the Funds <br />Refunding of the Series 2002A and Series 2002B Bonds is expected to <br />produce cost savings, which may free up revenues for alternative uses. <br />Operating Costs of the Proposed Improvements <br />The proposed refunding of the Series 2002A and Series 2002B Bonds would <br />reduce operating costs of the Buildings, to the extent current lease payments <br />are converted to lower CIP Bond debt service payments. In other respects, <br />no changes to operating costs are expected under this CIP. <br />Options for Shared Facilities with Other Cities or Local Government <br />Sharing the Buildings with another community is not an option since the <br />provision of public safety services relies on immediate response times in <br />emergencies and having a shared facility outside of the community would <br />seriously jeopardize response times and public safety. In addition, all of the <br />surrounding communities have their own police forces. <br />For the electric and water (public works) portion of the Buildings operated <br />by the ERMU, services are provided to portions of Dayton, Big Lake and <br />Otsego. <br />City of Elk River CIP for Financing Purposes Page 8 <br />Level of Overlapping Debt <br />
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