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<br />MEMO <br /> <br />CENTERVIL.LE CITY COUNCIL <br /> <br />Date: <br /> <br />January 25, 2005 <br /> <br />To: <br /> <br />Honorable Mayor, City Council Members and Interim Co-Administrators <br /> <br />From: <br /> <br />John Meyer, Finance Director <br /> <br />Re: <br /> <br />Parkview Development <br />$615,000 GO Improvement Bonds, Series 1998 <br />Call Date of February 1, 2005 <br /> <br />Because of the interest rate on outstanding Bond coupons, the assessment <br />prepayments, the term of the Bonds and potential interest and fee savings, it is prudent <br />to call the Bonds. <br /> <br />The payoff amount of the Bonds is $340,000. The attached analysis enumerates the <br />potential net savings. More precisely, by the city excising the redemption option, the <br />potential lose on this issue is estimated to be $32,430. If the city chooses not <br />exercise the redemption option, the potential lose is estimated to be $46,971. The <br />savings by exercising the redemption option and calling the Bonds is $14,541. I am <br />recommending the city exercise the redemption option of the issue and call the Bonds. <br /> <br />If the Council chooses to payoff the Bonds, a temporary transfer of approximately <br />$47,000 from the General Fund or an Enterprise Fund will be necessary. Eventually, all <br />but $32,430 will be repaid. <br />