2004-02-11 CC Meeting - Laserfiche WebLink

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. ~ 'L<ta[,[ish,,{ l8.,7 STAFF REPORT CENTERVILLE CITY COUNCIL Date: February 11, 2003 To: Honorable Mayor and City Council Members Ms. Kim Moore-Sykes, City Administrator Ellen Paulseth, Finance Director 'Uf Elementary Water Main $410,000 G.O. Water Revenue Bonds, Series 1996 From: Re: ************************************************************************ The call date on the above bonds is February 1,2004. Since the interest rate on the remaining principal varies from 5.10% to 5.40%, it would probably be prudent to pay the bonds of[. Since many of the assessments have been prepaid and the City has the money, the additional fees associated with refunding the bonds would make refinancing a less desirable option. The amount of principal due is $190,000. Since 30 days notice is required to call the bonds, there will also be approximately $1,200 in interest due. The balance of the Elementary Water Main Debt Service Fund is $140,895.33. The City will be collecting a total of $35,694 in special assessments over the next three years. There will be a shortfall of over $14,000 in the fund even with an early payoff. However, waiting until the maturity date of the bonds may result in more than double that amount. H Council wishes to pay of[ the bonds, it will be necessary to make a temporary transfer of $50,000 from the General Fund or one the Enterprise Funds. As assessments are received, the transfer will be repaid. After all the assessments have been received (2006), a portion of the transfer (approx. $14,000) will become permanent.