|
Council Minutes of 9-19-78 -3-
<br />also discussed Ordinance No. 78-121. At this paint in rise, committee rec ds that
<br />consideration be given for amendms:nt to this ordinatue, due to basic ecanc~ics.
<br />Committee recommends the four wheel drive pickup with snow plow blede be ela+inated
<br />from this ordinance and will be loo~3.ng at it at a later date. 4) cosss3atee also
<br />discussed Ordinance No. 78-118 which authorises the Mayor to enter into a tract
<br />with CEI to furnish. the City electrical pao~er for street lighting and otter electrical
<br />services. The coamtittee has no objection.
<br />Mr. Logan, Chairman of Recreatia~p, Public Parka and Buildings reporteed 1) last week
<br />talked to Mr. Wayne Kuhn of Mctsld s~sd Coaspany, a financial consu.2tiag firm, regard-
<br />ing the debt service and debts in g~eral an that. Sec Co~1ex. Mt. Kuhn reported that
<br />the payment glee which was devised by their fxs~,in Apt'i1 of this year, in which the
<br />average annual debt service would come to $295,8 yearly, once we aptprbv~e it, was
<br />based on a 6x annual interest rate. Tit interest rates have increased to 6~X and he
<br />believes the interest rates will iaacretse a~tu t4 6-3f4X by the end stf next a~tth.
<br />What this means is that the $293,trAfl avera~s ensue], debt service, once.Ne cemvert the
<br />notes into bonds, is no laager accurate. T[ie $295,000 figure would bs~caare sosarawhere in
<br />the range of $310,000 - $325,000, mote lkelq around $320,000 a year. In roiling over
<br />the notes, which the City has beers dc-ing since the notes were issued in June of 1974,
<br />part of the the~-ry on that is that that harket changes, interest rates , anct the
<br />City would ctoose an acceptable interest rate level at some pout and at that point
<br />convert the notes to 'bands. ~. ad±~.eed that the market beiwg cyclical tads
<br />to an interest rate lower than 6-4X, proiaebly arosmd bx, so aa~y time in the near
<br />future we take an opportustf.ty to c~vsrt the Mesa into bands. If the interest rates
<br />go back down to 6X, 3~t gr~wld taean thsstt ~s $295,000 ar~ra~s sts~swtl debt aarvice would
<br />once again become the.. acessaR'ate figure t we fs~icateti it wc-ul.d be each year. Mr.
<br />Kuhn advised that i€ this happens, as ha irks it will in a year or ao, we s~iuld
<br />convert the rsxtltslts at~ud bosses is fume mf 19~tt?. Ia Jv®te of 197$, wst paid $135,04~Q >anney
<br />rental pagmssratt tit si totally as int~resst figctre - we don't receive ~y credit for
<br />that. In Jeare of 1979, we a $175,000 `. In June of 19~ it will be the
<br />fifth year in which the ts~tes hs~we bean rolled over. According to 8e Lear, we t
<br />make an $83,tm0 minwua principal pakt. That amens with the inresat which Mr. Ks~tn
<br />has calculated of about $2118,000 in Js>twe of 1A80, it would bring a-ur June of 1980
<br />payment, in a rolling Duerr of the note pracsesse, to $291,000. Tbet is cles~aly a drastic
<br />increase from the $135,000 fie we paid in Jane of 1938. The $2Q1,Ot?0 punt due
<br />June of 1980, Mr. Ksshn is very bx~eful for our sake that we find soars meaa~a of fuarding
<br />the Rec Complex de#t service. Wapafttlly it will not have to co>,se out of the G~eral
<br />Fund. Since these are rater complicated figures, Mr. Logan will be glad to discuss
<br />them with anyone at any time.
<br />Mrs. Sharpe, Chairsnaa of Building, Zoning and Development Committee reported: l) BZD
<br />Committee met on September. l3, 1978, and discussed Court Club - South Racquet Ba11
<br />Club. Parking and layout is adequate and committee has no objection.
<br />Mrs. Sharpe moved Council approve pr - -and layout of Court Club -South Racquet
<br />11 Club, seconded bq Mr. Logan. Affirmative vote on asotios: Baehseer, Logan, Petrigac,
<br />ringer, Sharpe, Wilamosky. Motion carried.
<br />2) committee discussed relocating d+ack area aad adding additional parking in the rear
<br />of Sherwin Williams Company and conas~ttee hu na objeection.
<br />Mrs. Sharpe moved Council approve relocation of dock area and additional parkisag in the
<br />rear of Sherwin William, s8ccaaaded by Mt'. Legere. Affirmative vote ate motion: Boehmer,
<br />Logan, Petrigac, Beringer, Sharpe, Wilaasosky. Motion carried.
<br />~~
<br />
|