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City of Centerville <br />Council Meeting Minutes <br />May 22, 2013 <br />key factors in their determination. Council Member King questioned Standard & Poors’ <br />rating of the City as being Moderately High regarding debt as a percent of market value. <br />Mr. Eilertson stated that even though Standard & Poor’s gave this ranking he would give <br />it a ranking of moderate debt and comparative to other cities of similar size. Discussion <br />ensued regarding the use of Standard & Poors versus Moody’s, other cities’ ratings and <br />firms used for obtaining them, no need for future borrowing due to the street maintenance <br />budgeting, and Council Member King’s request for more information related to S & P’s <br />rating of Moderately High. Mr. Eilertson stated that he would contact S & P regarding <br />Council Member King’s questions and forward that information to Administrator Larson. <br /> <br />Mr. Eilertson explained to Council that bidders pay a premium for higher interest rates <br />and Raymond James & Associates, Inc. bid the bond purchase with a $30,000 premium <br />that would be paid to the City to offset the total bond issuance. This would bring the total <br />amount of the bond to $1,485,000. Mr. Eilertson stated that ultimately the City would be <br />paying a higher interest rate but paying less over the period of the bond. Mr. Eilerston <br />reported that the City would receive the bond proceeds by June 13, 2013 and the City <br />could commence paying expenditures associated with the 2013 Street Improvement <br />Project. <br /> <br />VII. OLD BUSINESS <br /> <br />1. None. <br /> <br />VIII. NEW BUSINESS <br /> <br />1. Standard & Poor’s – Double A Rating of the City of Centerville <br /> <br />Previously covered. <br /> <br />2. Res. #13-0XX – Accepting Proposal on the Sale of $1,510,000 G.O. Improvement <br />Bonds, Series 2013A, Providing for Their Issuance & Pledging for the Security <br /> <br />As previously stated by Mr. Eilertson the Improvement Bond would be in the amount of <br /> <br />$1,485,000. <br /> <br />Motion by Council Member Paar, seconded by Council Member Fehrenbacher to <br />adopt Res. #13-015 – Accepting Proposal on the Sale of $1,485,000 G.O. <br />Improvement Bonds, Series 2013A, Providing for Their Issuance & Pledging for the <br />Security. Council Member King Opposed. Motion passed. <br /> <br />3. Mound Trail Property Owner Requests <br /> <br />36 <br />Page of <br /> <br /> <br />