HomeMy WebLinkAbout1974-11-18_COUNCIL MEETINGMEMORANDUM
30 October 1974
TO: Florence Hallberg
FROM: Mayor Van Valkenburg
SUBJECT: AGENDA - Ordinance No. 107 (Recycling Commission)
At the next meeting, I want to put on the agenda the matter of
Ordinance No. 107 which is a Recycling Commission. What I want
to do is to add to it so that we have six members, and also
there is a question why we need to have somebody from the Plan-
ning Commission on the Recycling. I can see somebody from the ,
- -- Environmental Quality Commission. Then, just to keep all these
together, I have been given the names of Nancy Grimsby, Richard
Schibur, who is a student, Ardyth Buerosse, Virginia Bodine and
apparently Bob Reid who wants to be on the Commission as well.
I don't know who the representative from the Environmental will
be, but we should ge that name from them, rather than us picking
a name.
James Van Valkenburg
MAYOR
JVV /hd
NEWSLETTER
T. G. EVENSEN & ASSOCIATES, INC.
Municipal Finance Consultants
Affiliate of Northwest Bancorporation
First National Bank Building
Minneapolis, Minnesota 55402
612/336 1637
NOVEMBER 10. 74
Municipal Market Conditions
Interest rates in all sectors of the money and capital markets have retreated over the past
two months. In the municipal bond market, the financial tensions which prevailed in late
July have receded and municipal bond offerings are now receiving relatively warm recep-
tions.. The Bond Buyer's Index may be used as an indicator of the improvement in tax -
exempt bond conditions as it fell from a 1974 high of 6. 91% on August 30 to 6.65% on
October 31.
The decline in interest rates occurred despite a rise in the supply of new offerings. A
number of new issues, some ,of which had been postponed because of the extremely high
interest rates in July and August, came to market following the movement toward lower
rates. As a result, the visible supply, which had ranged around $600 million in July and
August, rose to about $1.3 billion in October.
The main reason for the improvement in interest rates over the past two months has been
the apparent easing in monetary policy by the Federal Reserve. While inflation is still
far from being controlled, it appears that the Fed has changed its policies and is now more
concerned about the slowdown in economic activity we are now experiencing.
Although interest rates have generally improved over the past six weeks, the declines have
not been uniform in all maturity ranges. Short term rates (under three years) have fallen
more than 100 basis points from their July and August levels, while intermediate rates
have dropped about 50 basis points. Rates at the long end of the scale, however, have
fallen very little as investors are still reluctant to commit their funds for long periods
because of the uncertain long -term outlook.
Convention News
School board members in Iowa will be meeting in Des Moines for their annual convention
November 13, 14, and 15. We invite you to stop by our booth ( #85) for a visit. Nebraska
school board members will be meeting in Lincoln November 14 and 15. We hope to greet
many of you there.
By the time this newsletter reaches you, the general election date of November 5 will be
history. In addition to the election of candidates to various offices, a number of bond pro-
posals will have been approved or defeated. Despite the ever broadening power of muni-
cipal corporations to issue bonds for capital improvements, there are still many situa-
tions which require voter approval. Many communities schedule such an election to coin-
cide with regular election dates. There are many occasions, however, when the projects
are of sufficient size and urgency to justify setting a special election date.
Whether the decision is to submit a bond issue question at a regular or special election,
a great deal of information about the proposal should be presented to the voters prior to
the election. In addition to a description of the work to be done and the need for it, a state-
ment of the financial impact is an important part of any proposal.
We have found from many years of experience that a simple, clear, concise statement or
table seems to be most effective. The accuracy and simplicity of such an explanation pre-
supposes a great deal of research and planning by members of the administration and the
governing body. If you are contemplating a bond election, we would appreciate an oppor-
tunity to meetwith you to explain our services as Municipal Finance Consultants including
preparation of financial information for bond election proposals. Any such meeting of
course, would be without any obligation on your part.
Bond Buyer's Index
7.00%
6.75%
6.50%
6.25'
6.00%
5.75%
5.50',
5.25%
5.00%
n N D .1 F Al A M 1 .I A S
TTM�
Visible Supply
a1111 m
of $ 1625
1500
1375
1250
1125
1000
875
750
600
AT MID MONTH
_____ _______________________________
_____________ ____________________
_ _________ ____ ________
O N D J F M A M J J A S O
Recent Bond Sales
Amount
Moody's
Sale Date
Issuer
(0001s)
Purpose
Run
BBI
-6.65
Rating
NIC
Oct. 31
Bayard CSD, Iowa
395
School Bldg.
76/93
A
6.015
31
Richland Co., Wisc.
1,000
County Building
76/87
11
A
5.950
30
Roseau County, Mn.
85
Watershed Dist.
76/85
6.51
NR
5.926
30
Willow Lake, S. D.
98
G. O. Wtr. Sys.
77/94
11
NR
6.666
30
Cass County, Iowa
1,250
Hospital Rev.
75/89
11
NR
6.542
30
Poweshiek County, Iowa
500
County Home
75/92
11
A
5.86f
30
Van Meter CSD, Iowa
150
Sch. Bldg.
77/94
11
NR
6.42,
29
Prescott, Wisc.
510`
Corp. Purp.
76/89
11
NR
6.22'
29
Onalaska, Wisc.
1,331
Corp. Purp.
75/88,
11
A
6.12
29
Wabasha, Mn.
460
G. O. Wtr & Swr. Rev.
76/95
11
Baa -1
6.71
29
Shenendoah, Iowa
95
Sewer Const.
77/83
"
NR
5.79
29
West Burlington, Iowa
128
Swim. Pool
76/94
11
NR
6.32
29
Woodbury, Mn.
962
Various Purp.
77/94
11
Baa -1
6.59
24
Maplewood, Mn.
1,240
Improvements
76/94
6.48
A
6.34
23
Council Bluffs, Iowa
440'
Street Const.
78/92
11
Aa
5.84
23
Chatfield, Mn.
1,300
G. O. Rev. Nurs. Hm.
77/94
11
Baa -1
6.75
22
Muscatine, Iowa
1,856
School Bldg.
76/92
"
A -1
6.00
21
Maple Grove, Mn.
510
G. O. Mun.
77/94
"
Baa -1
6.58
21
Kenosha, Wisc.
2,595
Waterworks
77/90
A -1
6.58
21
Kenosha, Wisc.
450
Sewer
77/85
"
A -1
6.57
21
Ortonville, Mn.
330
Various
76/90
A
6.10
21
Duluth, Mn.
3,280
G. O. Bonds
78/96
A -1
6.13
16
Thief River Falls, Mn.
200
Improvements
75/86
6.52
Baa -1
6.13
16
Mora, Mn.
2,650
Elec. Sys. Impr. &Ref.
75/88
"
A
6.99
16
Brookings ISD #122, S.D.
950
Sch. Bldg.
76/94
"
A -1
6.27
15
Blaine, Mn.
975
Improvements
76/81
"
Baa -1
6.02!
15
Fargo, North Dak.
4,800
Ref. Impr.
76/94
Aa
5. 68,
15
Minnetonka, Mn.
5,050
G. 0. Impr.
77/91
"
A
6.071
10
Kimberly JSD #6, Wisc.
250
G. 0. Notes
75/79
6.68
NR
5.691,
8
Eau Claire, Wisc.
5,640
Corp. Purp.
75/89
11
Aa
5. 61�
8
Wisconsin Rapids, Wisc.
900
School Notes
75/84
11
A
5.817
8
Superior, Wisc.
1,200
G. O. Garage
75/89
11
A
6.178
7
Albia, Iowa
67
Sewer Impr.
76/89
"
A
5.900
7
Winthrop, Mn.
900
Improvements
77/91
Baa -1
6.495
7
Ramsey County, Mn.
1,220
Various
76/85
"
Aa
5.515
2
Prover, Wisc.
590
Sp. Assessm. B Bds.
75/84
6.62
NR
6.403
1
Council Bluffs, Iowa
650
Water Rev.
77/88
11
Aa
5.962
1
Hennepin County, Mn.
6,575
G. O. Bonds
76/94
11
Aa
5.811
1
Battle Lake, Mn.
1,050
G. O. Nurs. Hm.
77/99
"
A
7.620
Sept. 25
New Richland, Mn-
725
- Nursing -Home -
77/04
6:76
Aa
6.435
24
Rapid City ISD #1, S. D.
6,800
Sch. Bldg.
77/84
11
A -1
6.333
24
Truman, Mn.
1,200
G. O. Rev. Bds
75/77
"
Baa
6.700
24
Bismarck, N. D.
2,185
Temp. Wtrs.
11 -1 -77
"
NR
6.291
23
Ortonville ISD #62, Mn.
1,120
G. O. Sch. Bldg.
76/94
Baa -1
6.840
23
New Hope, Mn.
1,030
G.O. - Various
75/94
"
A
6.626
18
Martensdale -St. Mary's, Ia.
515
School Bonds
76/90
6.79
A
6.084
18
Willmar, Mn.
810
Improvements
77/91
11
A
6.540
16
Belle Plaine, Mn
130
Improvements
77/86
"
NR
6.899
12
Menasha San. Dist. #4, Wisc.
585
Swg. & Wtr.
75/90
"
A
6.805
10
Mound, Mn.
130
G. O. Impr.
76/88
6.88
A
6.666
9
East Grand Forks, Mn.
1,435
G. O. Temp. Impr.
76/77
11
Baa
6.742
4
Albert Lea, Mn.
4,000
G. 0. Hosp. Rev.
76/99
6.91
A -1
6.999
3
Bloomington ISD #271, Mn.
1,560
Schools
75/79
11
NR
6.757
J
s.. '.
noki
GENE SYLVESTRE ASSOCIATES, PLYMOUTH BUILDING, MINNEAPOLIS, MINNESOTA 55402 (612) 336 -4679
November 6, 1974
Mr. Warren Hyde
City Manager
City of Edina
4801 West Fiftieth Street
Edina, Minnesota
Dear Warren:
Following is a sumrm y of our consultative activities for the September 27 -
October 31, 1974 period:
TYPE OF HOURS
CONSULTING WHAT WAS DONE SPENT DATE
GENERAL Held series of discussions with a number of
possible keynote speakers for the Nov. 8 -9
Family Life Workshop planned for City 26.5 9127
residents. Assisted in arranging publicity and 10/2-9-21 -
prcanotion for Workshop. Held series of dis- 22 -23 -29
cussions with citizen co-chairman and HRC
chairwoman and members planning Workshop.
Helped in preparation of news articlibs, com-
munity calendar and distribution of October, 16.0 10/3 -4-7-
1974 issue of the "HRC NEWSLETTER." 21 -31
Worked with HRC member assigned to task force
developing plans for conducting a series of 1.5 10/29
community education forums on human relations
issues for citizens.
Held series of discussions with HRC chairwoman
on various human relations activities and pro- 4.5 9/27
grams being planned by the HRC. 10/3- 14 -16 -23
HOUSING Held discussions with HRC chairwoman and City
family whose home may be affected by the widen- 3.5 10/30 -31
ing and improvements contemplated for County
Road 18.
TOTAL HOURS: 52.0
S' rely,
e,le Sylvestf+e
cc: Meredith Hart
EHLERS AND ASSOCIATES, INC.
FINANCIAL CONSULTANTS
FIRST NATIONAL-SOO LINE CONCOURSE 507 MARQUETTE AVE. MINNEAPOLIS, MINNESOTA 55402 339 -8291 (AREA CODE 612)
November 1, 1974
File: Financial Consultants: Ehlers and Associates
Please distribute to governing body members
Strange how, when affairs turn, they turn fast.
After struggling to stay under 7% the tax exempt
bond yield indices dropped sharply (or, as the
parlance goes, the bond market became bullish).
We hope the improvement holds, which means that
we hope it is not just a pre - election phenomenon;
which means we hope that Congress will remember
inflation after November 5.
Dow -Jones Index 6.53%
THE WALL STREET JOURNAL
Tuesday, Octo er 15, 1974
Revenue sharing: a national (local) policy: The concept is (was) that state and
local governments should share in federal revenues (notwithstanding recurring federal
deficits) with no strings attached (well, not many anyway), and without a large,
expensive bureaucracy. But now we read that some congressmen would like to either
abolish it or attach strings, citing the absence of accountability, inability to
manage sound (national) fiscal policy, inability to solve national problems, etc.
The guess is that this congressional bloc will demand more strings as a condition
to continued support of revenue sharing. We ought not be surprised, since the
history of most federal financing has seen a proliferation of regulations.
Economic impact statements - -a partial inflation solution? A reader of an earlier
newsletter wonders why we spend so much time on inflation; why we don't confine
our comments to out field -- financing state and local government improvements?
Well, inflation is a prime cause of high interest rates and rising capital costs:
We feel it incumbent to add our two -bits.
A factor which increases everyone's costs is the federal regulations governing most
everything everyone does. To impose an economic impact statement on such regulations
makes sense. Somehow, the idea has developed that if a piece of legislation doesn't
cost the government directly it is non - inflationary. But if federal rules saddle a
producer with substantial costs then, necessarily, the price of the product increases.
If federal regulation demands an expenditure in one area, there are fewer resources
for something else. For example, we recently protested what we thought to be $37
million expense of marginal value in aviation (emergency locator transmitters).
The FAA and congressional response was: "We refuse to put a value on human life."
Well, that's what it's all about: A $37 million federally mandated expenditure to
save maybe a half dozen lives in aviation means $37 million is not available to
save many more human lives elsewhere. The interest alone (6%) on this amount would
produce $2,220,000 annually which would support 317 families annually with $7,000
annual income. Economic impact statements might force the government to make these
judgments.
It's been an interesting year for Ehlers and Associates. We've adapted computer science
to financial planning for Housing and Redevelopment (tax increment) projects, refined
older programs to more effectively analyze utility financing, developed programs which
demonstrate the comparative feasibility and costs of seven hospital financing methods,
made in depth studies of medical office building financing, and improved the usefulness
of 20 or 30 other financing programs.
We now have a program that will compute and print out the flow of funds from special
assessments, utility connection charges, user charges and tax levies and show how they
match (or do not match) improvement bond debt service. Phil Chenoweth presented a
report on this computer analysis to the Rochester meeting of the Minnesota MFOA chapter.
Details of his presentation are available on request.
In addition, we have had the bond rating services out three times to study specific and
general problems in the area. Most recently, last month, we entertained Bob Margolies
of Standard and Poor and Ed Kerman of Moody's at Cedar Falls and Des Moines. Ed also
addressed the South Dakota municipal clerks and finance officers and attorneys in Sioux
Falls.
With all the new breakthroughs we've had our best year ever. Thank you very much.
Very truly yours,
iV.EINC.
RLE:dd
AGLM' lk
EDINA CITY COUNCIL M, fffX,
I O %T1EBRR 18,, 1974
?a00 F.W.
YT's' f
� o PUBU �_Xr4S F:NStl IT.0 OSED ,'..i'ia'3R0VEH%b1 S Psesr'..atat'ien by City i'Lan.ageW and
Engiaea,_i�. Spectators heard. If Coil wishes to pm-ceed, actin, by Rasolutian
Ordering Impreve me. 1e /5 favorable jalleasll va*iQ to p&ss.
A. Stv= Sever Improvem nt No. SToS, -143 ® 4620/1:622 Bruce Ave. (Continued
from 11/4/710)
Bo Sanitary Sewer lmpmve-iwaabt ft. SS-320 a W, 75th St. - York-Terrace
Co Sanitary Smswr Improvement No. SS-319 ® Yeile Avenue Pmxklaaw-n Ave.
Dd Sanitary Samiz Improvement No. SS -378 m V. 765h Street m Frame Avenue
Ed I&ft Station 1agrravement No. P-LS -S France Avenue at H. 76th Street
F. Haatermin Improvemant No. P- WK-290 m Yams Ave,
G. Starr Sewer Improvement No. P -MS®142 w 'jfe%*k Avenue at W. 76th Street
Bo Street Imprcmemnt Mom P -BA -201 e bran Avenue
11. PUBIlic HEAUNGS W1 ZWIEG H&TTERS Affidariks of Nzbti.ce by Clerk. Pmsentation
by Planning Depart mnto Spectators hamodo Fimt Reading requitad offering of
Ordiman.ce only. 4/5 favoxable r;ellc all vote ro peas Second Fmading or if Second
Reading should be waived.
A. First Reading
1. Sales in Industrial District (Qmtinue to Decembers 2, 19740)
B. Secand Reading
10 0rrdin,as 0 811 -A -59 - Na n- v=forming Uses and Buildings
IM AWARD OF BIDS `tabulation and Rec*=Tandatian by (pity Manager. Action of Coil
by Mot ioan o
Ao Iftrruingside. Ases Gastbage Pickup CG.nti t
IV. CQ:a. MICATIONS
Ao Mr. Clarence Sct�arzkopf - Fark Dam—go by Sna�aamnbil.es '
B. Mr. Neal F, Page
I., Designation of Hama of "N ancy I. 08
20 Filling and wing of Pl€ag 73830, Pa el 7200 (blorrth sirla of Crosstmm
Highway at 13c&ddala Ave)
Vo -,-,RK=MNDAT10NS AWD REPORTS
A, Traffic Safety C ittee Minutes of 11/12174
B� G ra t h s :& egn Report (Continued fro 11/4/74)
C. Water Repartmnt Ccnam adat7 cn
Do 1,eague of Minnesota Municipal ities Meeting Northern Straps ftwo • Fates
E. Off -Sale lie'er II, mnse Applications
to Q Petroleum Statics 414 m 5401 France Avea:f S,
2. Ra.bobs , Inc.. - 5101 Arcadia Ave.
V1. ORDINANCES Fracentatim by City age rr 3/5 favorable raall calk vots to pass
Second ading .
A Seca nd RaeftrZ /
1. Racycling Czamiesia r, D dina e Awnzd=nt
Viz. RESOLUTIGHS
A. lbsolutirm of Condolence Bros. 3 y Emwa Willson
V1110 ANY GMRS WHO DESK H &EKG BEM 2H COUNCIL
19. FIROCE
d�
A. Verkman ®s Compeas ic:. Coverage f5w Bonds gnd ssiarj3
B. 1974 City Audit - (Cw.tinued from 11!4/74)
C. Grandview Uquor Store Ff_ tunes
Do Claim Paidd fttivu of - C " %;cn>ded by _— tor payment
of the fbIbuNing G1aime o Cemeral rl, 02,657.23; Constructiza mod,
$145,053o0 - Faf F=dp,,, $66e537 117- Water Pind, "4,693.01� JAquvr Yamd,
$182,414.31.; SNvn?Fundf $2,606.208 ?4bal, 063.96098