03-25-1996 Council Packet - Laserfiche WebLink

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THE EHLERS Leaders in Public Finance Since 1955 WINTER, 1995 CONTENTS InlcT^ovcmmcntal Cixipcration: The Name of the Game ..........I .-\nnual Puhlicorp Seminar ..........2 Conferences Conventions............2 I hlers Continues to Grow .............2 Congratulations ......................... 2 Sumrnarv of Area t^ond Sales ^ Tn I ehruan of we saw the t^ond I louver Index I of 20 >ciir, “A” rated JLgo bonds at a low point of 5 25®e Since that time, the MHI had risen to 7 ()6®o in No\ember of IW4 t alter rate increases bv* the federal Reserve Hoard) and has generally trended down since then Last week the ItHI declined to 5 37®o for communities who are ready for financing — and those for whom refinancing is feasible - it's an opportune time. 8 00% 7,50% 7.00% 6 50% 6 00%|- 5,50% 5.00% 1990 1992 1994 1996 1991 1993 199'"- INTERG OVERN M E NT A L COOPERATION: THE NAME OF THE GAME f I ^here is a growing trend of cooperation among governmental units to accomplish goals which benefit the entire Ciimmunitv We have participated in the planning and implementation of a number of such undertakings including the Id I low mg \ count) aided the development of a new resort facilitv b> approving a tax increment program ;ind issuing bonds to be used with several other private and public revenue sources. Improvements were financed which included redevelopment of a lodge dolroved bv fire Ilie schm>l district encouraged and participated in the project in order to use the facility for training students in the service industrv A city which owned a community auditorium in significant need of upgrade to meet code and ADA requirements was having dilficultv raising the money for the improvements. By cooperating with the school district the problem was solved I he city turned ownership of the auditorium over to the school district which held a district-wide election and approved the issuance of bonds to make the improvements. Because the school district is eligible for debt service equalization, the State will help pay principal and interest on the bonds, and the city will cover operation and maintenance. A building was leR vacant for a long period of time due to consolidation of operations of a business. I he city's Published Quarterly HRA issued revenue bonds to purchase and remodel the building The HRA entered into a leiLsc-purchiLse agreement with the county which uses the building for county services. County lease payments are sufficient to cover principal and interest on the bonds and. when the Kinds have been retired, the county will own the building Ihe county had previously been considering building new facilities for these sen ices Ihe elementary school in a small city was due to be clo.sed because it did not meet health and safety or .\D.\ requirements I he city needed city hall space With special legislation, the city was authorized to finance a new school building which will also house space for the city C ity funds were pledged to a portion of the project, and the city entered into a general obligation lea.se- purcha.se agreement with the school district I ease payments made by the school district will retire the bonds. I ax increment financing was propo.sed to a city for a new motel I he school district was interested in providing swimming for its students but had ru» facilities, fax increment financing was approved for a motel which had an o' er-sized swimming pool to acci'mmodate the needs of the school district and the community. .. . and there arc more. In the la.st Advisor, vve invited vou tow contact us anytime to discuss ideas, problems, options ;ind challenges Again, please remember that we arc problem- solvers. We look forward to participating in your ‘brainstorming * to help reach your goals for your community. EHLERS AND ASSOCIATES, INC. 2960 Norwest Center • 90 South Seventh Street • Minneapolis. MN 55402-4100 • 612-339-8291 • FAX 612-339-0854 Corporate Woods. Suite 225 • 375 Bishops Way • Brookfield. Wl 53005-6200 • 414-785-1520 • FAX 414-785-1810 I i