1988-11-15 Special Public Bond Sale
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CITY OF ALBERTVILLE
POBOX 131
ALBERTVILLE, MINNESOTA 55301
PHONE (612) 497-3384
MlNUl'ES OF
SPECIAL ())(JtCIL MEETItG
NOVEMBER 15. 1988
A spec~al meetl.Ilg of the Albertv~lle C~ ty Counc~l was called to order by
Mayor Loretta Roden. Members present included Don Cornelius, Donatus Vetsch
and Gary Schwenzfe~er Council member Bob Braun was absent Others present
included Maureen Andrews and Brad Farnham.
The purpose of the meeting was to discuss and set the date of the public
bond sale on the Savi tsln . s Sunrise Camnerc~l Ad.d~ tion and the Advance
Refundl.Ilg of the G 0 IlI'.\Pl'Ovement Bonds of 1982 and the G 0 Sewer Bonds of
1984
Brad dJ.6CU6sed w~th the Council the ~66ue of current trends m mterest
rates and what impact these changes could have on the advance refundl.Ilg6 bel.Ilg
proposed for the City Brad explamed that the Bond Ibyers Index (BBI) has
been stead~ly moVUlg downward over the past few months b..tt saw an movement
~ard on 17th and 18th Th.~s movement can not be troly explamed b..tt Brad
felt concerned enough that he wanted the Council to meet and dec~de what to do
w~ th the bondl.Ilg proposals.
Brad explamed that the Cotmc11 had three opt~
1 They could wait and see ~f the market recovers and mterests
drop again, chancing that the rates w~ll not move away 106l.Ilg
the oavings :required for the advanced refunding,
2 The c~ ty could enter into a negotiated sale with Juran and Moody
and lock mto the current interest rates. or
3 TIle C~ ty could call for a publ~c sale of bonds for some t1ll'le m
December and if interest rates began to move ~ard have the
opt~on to cancel the public oale and negotiate the sale w~ th
Juran and Moody
Brad told the Counc~l that he was not sure what w~ll happen w~th mterest
rates and wanted the Council to have an opt~on to cons~der each of these
opt~ons
There was also some d16CU6sion on the t1ll'lelmess of a negot1ate sale As
d~sCU6sed before. Brad would hke to see the relat~onship between the Council
and Juran and Moody be further developed before th~s type of sale occure.
Make our Cltv Your City
We invite Home Industry Busmess
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It was pointed out that even with trends 1Il interest rates December J.S
often a gOCld JIX)l1th to sell 1:x>nda because of the tendency that there J.S very
little "nmicipal paper" available for the tt:mi.cipal Bond Underwr1ters to
sell, wh1ch often times result in better lIlterest rates ThJ.S pomt J.S
somewhat clouded with the fact that one comrmmity w1ll be sellmg a large
amount of bonds m a three segment sale durmg the course of December, rot 1f
tJ.DJed nght the Albertville sale w1l1 not likely see any effect of the larger
sale
There was discuss10n about when the bond could be sold and closed The
mer1 t of closing the sale in 1988 would mean that the City would reduce the
amount of debt that shows in the Audit Report Because of the information
supp11ed earlier by Brad the Council agreed to time the sale 60 that 1t f1t m
between the larger sales 1Il hope to get active biddmg.
After some additional rlje<'J.1SSion. it was agreed that the City would call
for a public sale on December 12th in order that the sale could be closed
before the end of the year. If by chance the mterest rates began to move
negatively agall'lSt the City that an emergency meeting would be called so the a
sale could be negotiated and interest rates locked m.
A Il'K)tion was made by Don Cornelius and seconded by Donatus Vetsch calling
for the sale of G 0 Advancle Refunding Bonds of 1988 and the G 0 Improvement
Bonds for the Sav1tski's Sunrise Chanercial Addition on December 13, 1988 at
11 00 a m at the Juran and lb.xiy offices in St Paul and award of same at
7 00 p m of the same day in the Albertville Council Chambers all were m
favor and the Il'K)t1on carried
There was not any other bJai.ness 60 a Il'K)tJ.On. was made to close the
meetlIlg The mot1on was made by Don Cornelius and seconded by Gary
Schwenzfeier All were in favor and the motion carried
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