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<br /> <br />'EstaHished'18S7 <br /> <br />STAFF REPORT <br />CENTERVILLE CITY COUNCIL <br /> <br />Date: <br /> <br />February 11, 2003 <br /> <br />To: <br /> <br />Honorable Mayor and City Council Members <br />Ms. Kim Moore-Sykes, City Administrator <br /> <br />Ellen Paulseth, Finance Director tf <br /> <br />From: <br /> <br />Re: <br /> <br />Elementary Water Main <br />$410,000 G.O. Water Revenue Bonds, Series 1996 <br /> <br />************************************************************************ <br /> <br />The call date on the above bonds is February 1,2004. Since the interest rate on the <br />remaining principal varies from 5.10% to 5.40%, it would probably be prudent to <br />pay the bonds otTo Since many of the assessments have been prepaid and the City has <br />the money, the additional fees associated with refunding the bonds would make <br />refinancing a less desirable option. <br /> <br />The amount of principal due is $190,000. Since 30 days notice is required to call the <br />bonds, there will also be approximately $1,200 in interest due. The balance of the <br />Elementary Water Main Debt Service Fund is $140,895.33. The City will be collecting a <br />total of $35,694 in special assessments over the next three years. There will be a shortfall <br />of over $14,000 in the fund even with an early payoff. However, waiting until the <br />maturity date of the bonds may result in more than double that amount. <br /> <br />If Council wishes to payoff the bonds, it will be necessary to make a temporary <br />transfer of $50,000 from the General Fund or one the Enterprise Funds. As <br />assessments are received, the transfer will be repaid. After all the assessments have been <br />received (2006), a portion of the transfer (approx. $14,000) will become permanent. <br /> <br />r- "'-, _ 1-/ <br />'ii,,/ <br /> <br /> <br /> <br />r- <br /> <br />-'} <br /> <br />- .:)c <br /> <br /> <br /> <br /> <br />o <br />/ <br />