City Council Minutes 1994 03 01 - Laserfiche WebLink

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the payment of the principal of and interest on said bonds from the new revenue derived from the City's Sanitary Sewer System; providing for the payment and discharge of the outstanding bonds being refunded; and providing other covenants and details in connection therewith." Forrest Cason, Vice President, Kirkpatrick Pettis, 1700 Lincoln, Denver, Colorado, stated that if the issue was to be sold on a rated basis, the City would end up with a split rating with Moody's giving a rating of BAA and Standard and Poor's a rating of A-. He felt it was cost beneficial to sell the issue on an insured basis. The premium for insurance would be less than or no more than the differential in interest rate between BAA and an AA rating, which is where an insured issue will sell. He explained that with a contribution of $370,000 from fund balance, the City could shorten the debt from 2006 to 2003. The City would be realizing a significant present value savings that is based upon the interest differential. From a debt management standpoint, this would be beneficial to the City to the extent that the City's current capital plan for the sewer utility envisions a major investment in 2004. He recommended the City go forward with the structure which utilizes the $370,000 to shorten the maturity, along with the savings from the refunding. The cumulative effect of being able to retire the bonds early and take advantage of a lower interest rate environment at present would be a debt service savings of just under $1 million and a present value savings of over 7% of the par amount of the outstanding bonds. Sisk moved that Council place Ordinance No. 1145, Series 1994, out for publication and set a public hearing for March 15, 1994. Seconded by Howard. Roll call was taken. Motion passed by a 7 - 0 vote. PRESENTATION - ROCKY FLATS LOCAL IMPACTS INITIATIVE 1994 BOARD OF DIP~CTORS AND REPORT ON 1993 ACTIVITIES Davidson excused himself since he is an employee of Rocky Flats. He turned the meeting over to Mayor Pro-Tem Howard. Lathrop stated that in 1993 the RFLII was originated and with one seat on a rotating basis with the municipalities of Boulder, Lafayette, Louisville, and Superior. Louisville occupied the rotating seat in 1993. This year Boulder will. Tim Heaton, Co-Director of the RFLII, stated that since October 1, 1993, 502 Rocky Flats employees have left the plant site voluntarily. Just before the holidays 227 received layoff notices. He commented that the average wage of a Rocky Flats worker is $9,000 above the Metropolitan average, with the average wage at Rocky Flats being $41,000. The RFLII is in the process of implementing two economic conversion plans: 5