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A Debt Study DiscussionCITYOF CHANHASSEN Ce,ret Drive, PO Box I47 7ha,hasse,, Mi,,esota 55317 £ho,e 612.937. I900 Fax 612. 932 5739 )~gi,eeri,g b2r 612. 93Z 9152 S~O, Fax 612. 934.2524 www. ti. d,,,h,sse,.,m.,s MEMORANDUM TO: FROM: Mayor City Council Bruce M. DeJong, Finance Director'S/ DATE: April 27, 2000 SUBJECT: Debt Study The attached information fi'om Ehlers, Inc. summarizes the position of the debt service funds that are open at this time. The individual fund balances were updated during the audit process, but the information enclosed provides an accurate picture of the total debt position of the city of Chanhassen. Mark Ruff will be present on Monday evening to discuss the information and its implications regarding tax levies and debt burden in the future The highlights of this study are two bond issues that are possible refunding candidates. The issues for consideration are the 1988 Fire Station and Equipment Bonds (Fund 316) and the 1989C Corporate Purpose Bonds (Fund 323). With coupon interest rates at 6.4% and higher, reasonable savings may be made in these areas. This study has also identified special assessments which need to be split between issues. The projects in question were bonded for in two separate issues, but the assessments have been credited to only one fund. Those issues are 1992A G.O. hnprovement Bonds (Fund 310) and 1993C G.O. Improvement Bonds (Fund 331), and 1995C G.O. Improvement Bonds (Fund 340) and 1996B G.O. Improvement Bonds (Fund 342). This study has implications for the 2001 tax levy which wilt be discussed on August 21. I believe that we have under levied for debt service in prior years. We need to get back to the schedules established in the original bonding documents to ensure that future taxpayers don't pay for current benefits. attachments e Otr ofCha,hmsc,. A y, rowi,~, com,m,it~, with ch,a, lakes. ~z~alit~. sd~ooh. ,~ d~a,,i,¢ dow,tow~, thrit,i,,~ b~si,esses. ~md bea,tiEd t~arks. A erc~t zdace to live. work. a,d vla~. 0 -J 888 ~8~ , , ~ g g 8 o© o~ o o o o o 0~0~o~o~- Z 8888 °°° o~ 88888§88 § 8 8 ~o o 8 8 8 8 o o CD Z Z 8 8o° 88§ 8o 2, 8 o° 8 Z 8 8 8 8 o°8 a§aa§ Z 88§88 88888 88888 8 o° o° 8 8 8 '¢ -::f',~ ,f ",::f ',f 0 0 0 0 7 8 ~ 8 8 8 o o° ~o z 8888 o8 8 g g 8 g ~o ~ ~o = ~o ~o = = ® ~ o8§§§°°o88§8o z 8~88888888888 ~ ~ ~8~8~ ~ oo° 8 ~ 8 8 D ~° o8O°°°§§o°§8o oo o ~§88 ° ~g~ggg § § 8 8 8 ~ 8 8 0 0 0 0 O_ 0 o® ~g oo