HomeMy WebLinkAbout04/05/1984CITY OF APPLE VALLEY
Dakota County, Minnesota
April 5, 1984
Minutes of the special meeting of the City Council of Apple Valley, Dakota County,
Minnesota, held April 5th, 1984, at 8:00 o'clock p.m. at the City Hall pursuant to
due call and notice thereof.
PRESENT: Mayor Branning; Councilmembers Goodwin, Holton, Humphrey and Savanick;
Clerk Asleson.
ABSENT: None.
Mayor Branning called the meeting to order at 8:08 p.m.
Mr. Asleson presented Mr. Steve Mattson of Juran & Moody, Inc., who ex- PROGRAM FOR
plained the proposed program for "Early Retirement of Bonds". The City EARLY RETIRE-
now has twenty-plus bond issues outstanding from 1964 through as current MENT OF BONDS
as 1982. Thirteen of these are candidates for full cash defeasance.
With a $2.5 million dollar investment in U.S. Government securities, $3.1 million in
bond payments due in 12 years could be retired. The securities investment wilt yield
a 12 1/2 percent return, while the City is paying about six percent on its outstanding
bonds. The immediate net would be around $34,760.30. The City's debt service ac-
counts would be considered fully funded if the program is adopted as data is presented
in audited financial statements--this is the real key to rating circumstances. (The
City's current B-AA1 bond rating should be able to be upgraded to an A bond rating.)
MOTION: of Holton, seconded by Humphrey, adopting Resolution No. 1984-
47 approving defeasance program for certain general obligation
bonds of the City including an escrow agreement with First Trust
of Saint Paul and authorizing transaction expense not to exceed
$27,000.
RES. 1984-47
BOND DEFEASANCE
PROGRAM
Councilmember Humphrey pointed out that part of the legal fees will be for obtaining
necessary legal opini6ns. Councilmember Goodwin said the defeasance program appears
to be an excellent idea.
Vote was taken on the motion. Ayes - 5 - Nays - 0.
MOTION: of Savanick, seconded by Holton, approving hiring the parttime
employees as listed in the City Administrator's memo dated
April 5, 1984. Ayes - 5 - Nays - 0.
HIRE PARTTIME
EMPLOYEES
CLAIMS & BILLS
MOTION: of Holton, seconded by Savanick, to pay the claims and bills,
checks numbered 31033, 31034, 36919 through 36990, 36993 through
37007, 37017 through 37069 and 37071 through 37073, in the total
amount of $452,344.77. Ayes - 5 - Nays - 0.
MOTION: of Hotton, seconded by Savanick, to adjourn. Ayes - 5 - Nays - 0.
The meeting was adjourned at 8:45 o'clock p.m.