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future users so that existing rate payers don't pay <br />for growth. <br />Caldwell stated that the credit quality of the City <br />is based upon its economic base and its diversity, <br />its overall debt structure in relationship to <br />population and repayment of building per capita <br />income, its management and internal factors, and <br />trends in the funds and the fund balances. Each of <br />these factors have improved over the past six years <br />according to the independent rating agencies who <br />have established the City's credit rating. These <br />agencies issued a Baal rating in 1986 and Louisville <br />has now improved enough to become an "investment <br />grade" municipality. With this water and the recent <br />sewer bond issue, Louisville will have two AAA <br />insured bond issues. <br />Mohr stated that it is very important that these <br />numbers are looked at in the context in which they <br />are given and in the context of the goals of the <br />City and clearly see that over the past four years, <br />the City's summary of water rights acquisition <br />approaches nearly 2100 acre feet. Mohr stated that <br />this is a high priority and these figures show that <br />it is being accomplished. <br />Sackett was concerned that this approach in having a <br />longer period of financing to achieve equity among <br />rate payers would diminish his goal of financing <br />depreciation. Sackett suggested that a method could <br />be devised to allow for equity among rate payers and <br />still create a fund for depreciation and not issue <br />as much debt. "Lets get the $813,000 to purchase <br />the water and spread out the loan payments, but <br />only extend it to where we have to pay for the <br />$813,000, and where we can even out to where we have <br />no present value cost." <br />Caldwell stated that if this process were to start <br />over again considering these changes, there is a <br />risk that the overall benefits would no longer be <br />present as the market changes rapidly. Caldwell <br />stated that out of the 35 cities he represents, none <br />fund depreciation in the enterprise funds. There <br />will be a high fund balance carry-over with this <br />issue in case of an emergency or in case the tap <br />revenue should not materialize in any given year. <br />Carnival stated that the Finance Committee looked at <br />this proposal and recommend Council approval <br />according to six objectives that they presented to <br />Caldwell. After looking at all the proposals, The <br />Finance Committee felt that this proposal, which <br />included the $813,000 to purchase a possible large <br />