HomeMy WebLinkAboutRPT 6 ASSESS DIST 86-2 02-06-89~ ]]lk ] ]r~ ~ RE PORTS ,
fo:
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY NANAGER
FINANCE DEPARTHENT
ASSESSMENT DISTRICT NO. 86-2 IMPROVEMENT BONDS
CONVERSION TO FIXED RATE
The first conversion of the 86-2 Assessment Bonds from variable
to fixed rate took place on Wednesday, February 1, 1989.
$15,664,963 of the $81,400,000 total will be converted with the
next conversion estimated to occur in twelve months. The
interest rates range from a iow of 6.25 percent in 1990 to a high
of 7.60 percent in 2013. The average coupon rate is 7.17
percent. This will result in an average effective tax rate per
dwelling unit in the converted area of approximately 1.85
percent. (The effective tax rate is the basic levy, one percent,
plus bonded debt and assessments.) By comparison, the February
1, 1988 conversion for 85-1 was an average coupon rate of 7.99
percent and an average effective tax rate of 1.95 percent-.
The next opportunity for conversion to a fixed rate would be
August, 1989. At this time we do not anticipate a conversion in
either Assessement District.
Attached for your review is a copy of the Secondary Offering
Memorandum, similar to an official statement, the primary
ale of these converted bonds.
R0k~d A. Nault V
Director of Finance
RAN:ls
Attachment