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_._i�i�`-' -�t�V-1 7 <br /> Page 6 <br /> `I'O: City �:�ministrator <br /> City Council <br /> y,kprr,: 'I�;m �:u�hn, Fir,ance Direc�or <br /> ��TE : hpril 11, 1�80 <br /> S��•JECT: F�s=ible Fir_�ncinc �or Se��•�er C^nstruction Projects <br /> I ��ve revie��ed the alLern�tive to i ir:ancing the Ivorth Shore <br /> 17=1VC- al"]C T��T?�.c�0?"i��c b�i:L���i'�25� Fe2�ii:,cl � ccP1�a?-�; cP��:er D1"G� t��LS <br /> Gii?-1I-iC 1i8�. bE��'.•.'�CII �'1E �-i�iE' Oi �E�q'�'sripQ CO?�SLillC�10i1 c7lQ tlle <br /> L�T�Ic �hc=� �rri`ic��Gr1�C I1.�cr?C-_27C 15 eSL�3I���_5`IEG, �I7� C1L�� Tlay lc�n <br /> �'_'Olil G�i-i21" _ililv5 LO �r�E CO?"1SL?�llC�101"? ill:"lG, zi� LI?1s �-me 'tli2 <br /> C��i' -'t1I�lQ �:1i-�': SL'^S�ar��1c1 ��-ailable I?1G'�leS 1S Ll:�E Se�,:er DEbt <br /> _�nd. I ha�-e re�-iewe� tnE procedu�-es �rie=lv ti-ith Pnil <br /> �-.er�owetY? of �^:lers , the C��j, ' s financial consu�tant. <br /> I= we decide to borrow se��er debt monies, the loan s}�ould be <br /> ,._eatec zs � Lemporary irnvrovement bonc. Also �hese "bonds " <br /> should bear interest at tne aoina rate. A� tnis time tnat <br /> interest raLe woula be 7% per �nnum (the state ceiling for <br /> municipal bonds) . The bonds would be due within three years , <br /> but pern�anent financing should be establisl-ied as soon as <br /> possible. The maximur� amount we could borrow would be that <br /> �,-nount which would not be neeaed for debt service reauirements <br /> tiithin the three vear term o� the tem�rary bond issue. At <br /> this time I estimate tl-�at we have �ror,�� $500, 000 to $550, 000 <br /> o� mon�es available for loan purposes. , <br /> iiowever, I must advise extreme caution at this time i� we consider <br /> this approach. It must be remembered that tne issue coula run <br /> onl;- tnree t-ears, and bezore the end o� the three years� period <br /> per,��anent fin�ncing �aoula have to be ob�aine�. Mr . Chenoweth <br /> stated t'r�at the market has been saturatea with temporary <br /> issues and that means there will be man�� issues requiring <br /> permanent financing at the same time as ours. <br /> If permar�ent financing were available now, we could issue <br /> special assessment improvement bonds and assess that portion of <br /> the costs b�% w'tiich the various proper-ties were benefited. <br /> 'I`his would reQuire an appraisal of t]-ie property before �nd after <br /> tne project_ �ne b�lance or the costs, if any, could be put <br /> on a general �� levy. �he City levies about $22, 000 annually <br /> =or bonded debt now. 7`'tie per capi�a le��� li.mit (based on the <br /> latest iederal census) ior bonded debt is $54. 00 generally. <br /> �•�ith a popula�ior_ of 6, 787 in 1970, tris means we could levy <br /> up Lo $366,�95 =or payment of bond principal and interest. <br />