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explained that that decreases the efficiency of the refunding, the <br />benefit which can be earned in that escrow. On Monday he ran the <br />numbers through again and interest rates on municipal bonds had <br />stayed the same. Treasuries now yield nearly 83% of the Municipal <br />rates, which has decreased the efficiency of the transaction a <br />little. With the changes in the interest rates both on the <br />municipal side and with the Treasuries, the budget savings have <br />gone up to about $900,000.00 as of Monday, with a present value of <br />$286,000.00. The budget savings just 10 days ago were over $1 <br />million. The present value is around $260,000.00. He stated that <br />it will continue to move around, but the basic benefit to the City, <br />that present value savings, is on the order of $250 - $300,000.00. <br />That doesn't change as rapidly as the others. With regard to the <br />timing of the bond sale, with Council's approval of the ordinance <br />on first reading, he stated that they're ready to enter the market <br />at any time. Briggs asked Council to enact the ordinance on first <br />reading, allowing them to proceed next week with pricing the bonds, <br />which is scheduled to occur on Thursday, which would allow them to <br />go for a final reading before Council, of the bond ordinance, on <br />September 29, 1992. This, after the publication requirement as <br />required by statue, would allow the bonds to be closed on Friday, <br />October 30, 1992. <br /> <br />Davidson called for Council comments or questions. <br /> <br />Mayer: <br /> <br />On page 4 of your memo, Sources of <br />Use of Funds, which fund is the <br />Contribution from the Lease Payment <br />Fund? <br /> <br />Briggs: <br /> <br />Mayer: <br /> <br />These are monies which have been set <br />aside for payment of the <br />Certificates Of Participation in <br />advance of the next scheduled <br />payment date, which is November. <br />Those funds are held by the Trustee. <br /> <br />That's in addition to the <br />$400,000.00 reserve, which is being <br />held throughout the life of the <br />COP's? <br /> <br />Briggs: <br /> <br />Exactly. The reserve is funded on <br />the day that you closed on the <br />Certificates Of Participation in <br />1989. <br /> <br />Lathrop: <br /> <br />Briggs: <br /> <br />To clarify, what is the total cost <br />to the City for this refinancing? <br /> <br />The cost to the City is financed in <br />the transaction, so there are no out <br /> <br />4 <br /> <br /> <br />