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Special Council Meeting <br />3-10-08 <br />Page 9 <br />know what the effect will be on long term money. We don't anticipate going out to bond any <br />time soon, to Mr. Brett's knowledge. <br />Mr. Maxquardt stated that in the articles he read, it is driving financing rates for <br />municipalities and schools way up on both the long and short term. Mr. Brett stated he would <br />like to see that article. Mr. Brett cannot see where we would be impacted differently than the <br />general public or the private sector. <br />Mr. Marquardt added that the other thing to keep in mind is that big buyers of municipal <br />bonds are insurance companies. They hold on to money if they think they are going to have to <br />pay out later. Insurance companies are getting bit by this change. <br />Mr. Brett said we will see in September, regardless of which option we choose on the <br />police station. Mr. Brett expects the short term rates will go down. Investment bonds are <br />getting called now. <br />Mr. Marquardt stated that we are running way to high a risk on debt primarily based on <br />our reliance on Progressive. It has gotten worse with the market the way it is. <br />Mr. Brett stated that our debt is entirely tied to the assessed valuations of properties in the <br />Village and TIF revenues which are all in turn tied to property values. <br />Mr. Nlarquardt stated we are beginning to pull into the General Fund to pay down our <br />debts. You have Progressive that has a problem. They start looking revenue. You have to <br />cover it somehow. Mr. Marquardt added that we'are running too high a risk. He has asked for <br />a risk assessment which he was promised last year to look at what risks we are running. He has <br />not seen it yet. We need to get some kind of data showing what kind of risk we are running. If <br />Progressive for some reason loses 10% of their employees through acquisition or shipping jobs <br />overseas or whatever. <br />Mr. Brett stated that is not going to impact debt, that will impact the general revenues. <br />Mr. Marquaxdt stated we should look at what the risk is. <br />Mr. Brett said if they leave it is going to be dramatic. He has said that since he came <br />here. <br />Mr. Maxquardt asked what degree of leaving is going to be enough to tip us over the <br />edge. Just to say it is going to be a disaster, let's do some kind of assessment. <br />Dr. Parker asked what the likelihood of their revenues continuing to go down is. He <br />understands what Bill is driving at, he wants to look at a scenario. Mr. Marquardt stated you <br />can't look at the strategies unless you evaluate the risk. What we have seen in this whole <br />mortgage thing is no risk assessment all the way across the board. We are doing nothing as far <br />as risk assessment. Dr. Parker said that you have to look at the potential that you have to