INFORMATION #2 08-23-1993
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TO:
MAYOR & CITY COUNCIL
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LORI JOHNSON, FINANCE DIRECTOR A~
FROM:
DATE:
AUGUST 19, 1993
SUBJECT: 1993A $3,525,000 GENERAL
OBLIGATION PERMANENT IMPROVEMENT
REVOLVING FUND BONDS
The issuance of the 1993 Improvement Bonds is proceeding as was
proposed in the resolution approved by the Council on Monday
night. As you know, the issue at that time was the fact that a
Letter of Credit for Mississippi Oaks improvements was not yet
in place. Since that time I have spoken to the Moldenhauers
and their accountant. The Moldenhauers have indicated that
they will proceed with Phase I of Mississippi Oaks this fall to
be assessed for collection in 1994. They have also indicated
that they are scheduled to meet with the bank on Friday morning
and by Monday we should have a good indication of whether or
not a Letter of Credit will be in place.
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The only adjustment made to the bond issue is that the maturity
schedule has changed somewhat; the maturity related to the
Mississippi Oaks improvement project has been moved from 1995
to 1996. This offers more flexibility should, for some reason,
the Mississippi Oaks project not be assessed until 1995. As it
stands now, plans are to assess the Mississippi Oaks
development for assessments payable in 1994.
I will have an update for the Council meeting on the status of
the Letter of Credit. If the Moldenhauer project does not
proceed, the City can use these funds for a similar special
assessment project with collection for special assessments
beginning in 1995.
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P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425