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THURSDAY, JANUARY 21, 1999 <br /> <br /> Mr. Rose continued the presentation by stating that the financing strategy provided showed the City' s <br /> <br /> existing debt with new debt service for specific project layered in with a critical consideration for proper <br /> timing. He stated that the debt strategy shown first recommended that the City take advantage of the new <br /> <br />Literary Fund loan limits and borrow $7.5 million for the Albert Harris School renovation project, at an <br />/""interest rate of 3% or less. The first step in the financing of this project, however, was stated as getting the <br /> <br /> lowest possible interest rate on funds for interim financing of the project, while waiting for Literary Loan fund <br /> approval. A full explanation of the entire Debt Financing strategy was then provided, listing projects to be <br /> included, amount to be financed for each project, annual debt service figures, and how various elements of the <br /> City's available revenues would be used to service the debt without the need to increase taxes. Mr. Rose <br /> showed how knowledge of the length of the construction time on each project was used in the strategy, and <br /> how the City' s existing loan of $2 million could be retinaneed into the overall debt picture for a lower cost on <br /> this debt. He also showed how the timing of assumption of new debt could be accomplished so as to <br /> minimize the total of debt incurred over the course of the projects to be done. Mr. Rose emphasized that all <br /> current debt of the City was represented in the figures, and all capital projects under consideration were <br /> included. Council Member Haskell asked whether anticipated new 599 Fund revenues from the State were <br /> included in funds projected to service the debt shown, and was told that these funds were not included. <br /> Mayor Crabtree noted that this fact made the strategy presented that much stronger, since the likelihood of <br /> provision of these additional revenues was quite strong. Mr. Rose then noted that all revenue projections in <br /> the strategy presented were very conservative, with rates of growth in the value of the tax base and real estate <br /> values projected at well below historical patterns, and no provision for growth in Enterprise Fund revenues. <br /> Under the plan of finance, Mayor Crabtree questioned the need for a bond rating. Mr. Rose replied that a <br /> bond rating would not be necessary for a small bond issue, but that if Council moved ahead on all the projects <br /> under consideration the rating would provide very significant savings in finance costs. Mr. Rose indicated <br /> that he felt the City would be able to receive a strong A rating, based on their analysis. Three options for the <br /> total finance package were presented, based upon three different scenarios for jail project reimbursement from <br /> <br /> <br />