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<br />I <br /> <br />I <br /> <br />I <br /> <br />Council Meeting Minutes <br />December 23, 1986 <br /> <br />Council Business, continued <br /> <br />Poston indicated the Board wanted this particular reserve to re- <br />late to the source of the reserve, which is bonded debt. <br /> <br />Benke asked if staff had made any progress toward getting a new <br />bond rating; Egan stated some preliminary work had been done, but <br />no schedule has been set to go to New York for a presentation. <br />Egan stated she agrees with the Board that this policy does not <br />detract from the financial stability of the community. <br /> <br />Benke stated over the last few years the major argument we have <br />had has been the strength of the city's financial position going <br />into the bond rating assessment and, despite the assurances, he <br />is cautious as to how large a leap we take; Egan stated the policy <br />continues to regauge itself to the bonded debt needs of the commu- <br />nity, it's not suggesting a windfall use of the closed bond fund. <br /> <br />Brandt asked what 20% of the present bonded indebtedness would be; <br />Egan responded it would be $2 million, noting we are currently at <br />a little over $1 million. <br /> <br />According to Poston, the Board is saying that as part of the <br />policy, existing open bonded debt (levies on that) be adjusted so <br />as not to allow the fund to increase by virtue of continued over- <br />assessments. <br /> <br />Egan stated that, if there is a projected surplus on any bonds on <br />which we are still making payments, we do not allow that surplus <br />to continue to grow. <br /> <br />Benke asked for confirmation that we would then eventually taper <br />off the levy on that fund; Egan confirmed. <br /> <br />In response to Brandt's statement, Egan clarified that we don't <br />manage for surpluses to continue to grow in an open bond fund. <br /> <br />Benke stated the policy statement and report from the Board is a <br />very thorough and technical report which is appreciated by <br />council. <br /> <br />Gunderman also felt it was very well done and thanked the Board <br />for the information required. <br /> <br />Motion by Williams, seconded by Brandt, to WAIVE THE READING AND <br />ADOPT A RESOLUTION ESTABLISHING A POLICY FOR THE USE OF THE <br />CLOSED BOND FUND. <br /> <br />4 Ayes - 0 Nayes, Motion Carried <br /> <br />Page Five <br />