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MINUTES/FINANCE COMMITTEE
Monday, November 18, 1996 - 7:15 p.m.

Members present: Carpenter, Babinchak, Bakken, Hamerlik.

1. Matter of financing for Cirrus Industries - $3,795,000 Sales
Tax Reserve Revenue Bonds (Cirrus Project, Series 1996A)
John Schmisek, city auditor, reported this is completion of financing package and selling of bonds to complete their facility.

Wally Dornfeld and Al Erickson, Springsted, Inc., were present.

Mr. Erickson reported that on October 29 Dain sent bond scale and worked on what their price would be, discussed with Dain on Friday on what scale would be and reviewed with the committee. He reported there is true interest rate of 5.85%, they dropped price lower than national scale.

Mr. Dornfeld reviewed schedule of Cirrus financing displaying principal, interest and other information concerning the issue; projected payment, annual surplus, etc.

Mr. Schmisek reported that the City had retained its A1 rating from Moody's. It was noted that Moody's had concern re. City's above-average level of debt, but have into consideration way finance department operates and way revenue used.

Moved by Bakken and Babinchak to adopt resolution authorizing the issuance and awarding the sale of Sales Tax Reserve Revenue Bonds (Cirrus Project), Series 1996A, to finance acquisition and construction of economic development facilities. Motion carried.
2. Matter of pledged securities.
Mr. Schmisek reported that Member Hamerlik had reviewed the pledged securities. Moved by Hamerlik and Babinchak that the pledged securities be re-approved. Motion carried.

Meeting adjourned.

Alice Fontaine
City Clerk

Dated: 11/19/96.