HomeMy WebLinkAbout1986-07-29 Info Packet of 7/25I
t
City of Iowa City
MEMORANDUM
DATE: July 25, 1986
70: City Council
FROM: City Manager
If: Material in Friday's Packet
Memorandum from the Director of Finance regarding the bond rating for the 307
Sever Revenue Bond Issue.
Article: Denison audit questions cities' development grants 130
I
ill
City of Iowa City
MEMORANDUM
Date: July 25, 1986
To: City Council
From: Rosemary Vitosh, Director of Finance KV)
Re: Bond Rating for sewer Revenue Bond Issue
receivedWe
assigned an Awrating o'yesterday thehave
to the City's$3890 000 Sewer )
erRevenueBondtIssue. This
rating was received based upon a bond resolution which did not include any
partial restriction of surplus funds of the sewer system.
Moody's stated that the strengths of the bond issue which provided the basis
for the A rating included 1) the fact that the City had already adopted and
was implementing a three—year schedule to increase rates and that those rates
would still be at a reasonable dollar level following all three scheduled
rate increases, 2) the strength of the security provisions included in the
bond resolution, 3) the excellent financial management of the City, and 4)
the City's overall excellent credit rating.
Our financial advisor, Evensen Dodge, reports that potential purchasers have
shown considerable interest in this bond issue. We are anticipating a good
sale next Tuesday.
bj5/3
/307
Denison audit questions
cities' development grants
BY WHJJAM PETROS61
ararw Sea N~
A stele audit W manicipal capeodana
In Denison has raised major cescerns
about whether local governments in
Iowa may continue their common
Practice Or peovidbg mowy a local
Industrial development organise.
U0131.
The recent audit questioned lent.
son's ild,Maward ad Its federal Jews.
camahDevelopment
to the Crawford
ty Corp., accord.
Ing to MAty Slate Aaditar Warren
Jenkins, In a 1911 case Involving a
municipal stitity, board, the Iowa at.,
torney rafts l's office hard an opis-
Ins Wtsald paymadsd total moray
to a non-profit development corpora.
tion are prohibited, he noted.
MPossibility eslststhat the 1991
opinion may apply to a city, but at
ccoulddcaHwsthisan early w�ta� „
Jenkins said Tuesday. The Iowa at.
issues. he added - – --
U Iowa titles and counties are
barred free helping local develop
meet units, the deelalon could send
shod waves that be" Is throughout b��w
t>.rineesmate
ge algsd emu"t ew
lob! and sparsely
—scam growtA.
"Most clues would be remiaa If
they were sotspaslly molly m eco -
note I a pswlw is them Jew•
eenwy," asp Mum Vebachtman of
Carroll, vice chairman of W Iorara
EconoDirralopmen�jIn and
counties devopprior
Use W on of saw prtorWa mot
M an development. If 2,00
don't. yw're ad gig 10 survive.
Ie Seheehlman'a hometown l
Carroll, W City Cassell recently de.
tided to provide $7,500 to the
CarrolIArm Development Corp. for
an indatrW m-TWling effort
Donna Fisher, city clerk of Spen•
cer, which is providing p39,m amu.
Ally to a coo-prout development or.
pulsation, says a ban an such
eeotribeuar would be a severe Prot,
lem for communities across Iowa.
"ft would be very difficult for us to
competear johewithotherstaLes. At
this moment, Iowa cities Deed all the
help they can get." Fisher said.
Denison officials plan to review
their state audit with W attorney
gawral's office sad will also talk
with federal revenue sharing officials
In Washington, D.C., mid Denison
Valor Jim IadwkL "I thick this in a
�eB: es these attorneyaadded, explaining
f.
gmetaiY of.
Dee will Kew clues and counties rep.
arste from municipal utility boards.
BW Roach, a spokesman for Iowa
Attorney General Tom Miller,
agreed "Tice questions about a mu•
nicipal utility am very different," be
said. 'IM powers of a city aced a
county are substantially grater than
a municipal utility board„
Bunch UW W attorney general's
Opinion under study will specifically
address wbetber the Eranmet County
Board of Supervisors may contribute
to an economic develooment aroun.
tot of W Leaiw ad Iowa municipull•
etas, Ind that H the attorney great.
al's office rules against city and
county funding of development orga•
olutions, be would aspect swift
actions by W Iowa Legislature to re.
"I would think they would be very
sensitive to something that mlght
Heil the ability of communities to
carry on self-help programs."
The Denison caw Involving reve•
nuesharlag funds Isof particularcoa
cern because sate and federal grants
to local governments aro being cut,
and titin and counties are Ming
Pressed to channel available funds
Into the most productive uses, Harps.
teresld
1308