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Regular City Council Meeting Monday, October 24,2011 Page 22 qualified, allowing for a larger pool of potential bidders that would drive interest rates down further and save the City significant money. Councilmember McGehee referenced the sliding chart in Exhibit B of the RCA; questioning if this was like an adjustable rate mortgage, and why the payments in- creased as the bonds aged. Mr. Miller responded that this was done to keep the City's annual debt service even,; and that the longer the investment horizon, the higher command on interest rates, with interest rates increasing over time, and the principle decreasing over time; and in total,payments remaining roughly the same on an annual basis. Councilmember McGehee noted the statement of Mr. Kysylyczyn that the City of Roseville held $20 million in available reserves, and questioned the actual amount available and not classified for a specific use. Mr. Miller advised that the City held approximately $4.5 million in unspecified reserves, while the remaining amount in reserve, approximately $16-17 million, and were specifically designated, either by an outside legal entity or by the City Council itself. For those City Council-designated funds, Mr. Miller advised that the City Council could choose a new purpose for those funds. At the request of Councilmember McGehee as to the current interest rate being realized on the City's investments and the anticipated interest rate on proposed bond payments, Mr. Miller responded that the City was receiving approximately 4% on those investments, and anticipated less than 4% interest rate on the bond issue, depending on the timing of their issue. McGehee moved, Pust seconded, NOT ADOPTING the proposed resolution (Ate tachment A) entitled, "Resolution Approving Modifications to the Redevelopment Project Area and Industrial Development District No. 1 Plan (Attachment B);" in conjunction with the sale of bonds to finance the construction of a new fire station and park improvements. Councilmember Pust thanked those in the audience for their very thoughtful tes- timony tonight; and agreed that the City needed a new fire station, and not just due to mold issues, but in her role as an employment lawyer, it was not advisable to make employees work in unsafe workplaces; and also speaking as an apprecia- tive recipient of the excellent services provided by the City's Fire Department. Relating to the park improvements, Councilmember Pust advised that she be- lieved those improvements were also needed, and especially as she considered the favorable and impressive public input process over the last 18 months, as well as over the last 3-5 years by the various work teams addressing park system needs. Councilmember Pust opined that the improvements were needed, and that parks were a good place for the community's children to be.