FINANCING THE VICTORIA FIELD HOUSE
"THE APPETITE FOR BONDS IS HORRENDOUS"
Paul Donna, the city's financial con-sultant with Juran and Moody, stated on June 27th, "There was only one better time that today to issue bonds in the last 40 to 50 years, and that was last November.  The appetite for bonds is horrendous.  Banks are the biggest buyers.  They're driving the market right now."
On July 25th, after the bonds were sold, Mr. Donna said, "It's been a busy couple of weeks since we last met ... Time was on your side ... There's a high demand out there ... You hit the bottom of the market ... I think it was fantastic ... There was a large community support for this project."
On July 25th, councilmembers ap-proved a resolution that provides for the issuance of $6.57 million in Gross Revenue Recreational Facility Bonds (to be funded by revenues of the facility) and  another resolution that provides for the issuance and sale of $875,000 General Obligation Equipment Certificates (for which a tax can be levied).  These figures include the addition of the gymnasium to the Victoria Field House.
At the same time, there was the ap-proval and issuance of $340,000 General Obligation Improvement Bonds for financing of the Parkwood neighborhood sanitary sewer project, "pledging special assessments for the security thereof and levying a tax for the payment thereof."
Mr. Donna said that Victoria's A3 bond rating was confirmed, based on the city's growing tax base, above average wealth base, and above average debt level.  He said the debt level is also related to the county and school debt, that it's very typi-cal of a growing suburban community.  "The debt is also being paid off at an above average rate, and that is also noted," he said.  "Time was on your side.  Your average debt service dropped by $2,000 a year."
Actual interest rates received:  5.87% on the 30-year Gross Revenue Bonds; 2.78% on the G.O. Equipment Certifi-cates; and 4.01% on the G.O. Improve-ment Bonds.  Even between July 10th and the actual sale on July 25th, the interest savings were substantial for the city -- over $100,000 savings on the Gross Rev-enue Bonds; over $10,000 on the G.O. Equipment Certificates; close to $20,000 on the G.O. Improvement Bonds.
Mr. Donna said on June 27th that the city can levy for its debt service, and that an equipment certificate will be a certified levy to the county.  Councilmember Jerry Bohn said, in other words, it will be a tax to the residents of Victoria.
Stated Mayor Mary Meuwissen, "It's not a tax if we have the money to pay for it in field house revenues."  Revenue will include standard ice time sold with con-tracts for $175/hour.
"It can also come from the Park Fund and also the General Fund," said Mayor Mary.  "We know we're going to be pay-ing money to have this facility ... The city is looking to spend between $150,000 and $250,000 annually for the facility.  It's not a break-even venture."
Added Mr. Donna, "The city can re-duce the levy by the amount you have to pay for the facility.  The security for the gross revenue bonds is the field house revenue.  You actually pledge to bond-holders to make up the difference, if there is a difference, to make up that amount."
Paul Donna also reviewed the finan-ces as they related to including a gymnasi-um in the field house package.  He suggested, on June 27th, the reallocation of costs in order to make it work.  "For example," he said, "would you need a parking lot regardless of a field house?  Would you still need storm sewer? ... Also lighting, would lighting be necessary regardless of a field house?"
Projected costs that could be allocate-ed to projects outside the field house include lighting ($125,000), parking lot ($300,000), and storm sewer ($225,000).
"It's the initial projections going for-ward that make bond investors comfort-able," he said.  "We need to go in with the scenario that council feels most comfort-able with."
"I have a hard time supporting a gym-nasium," said Councilmember Jerry Bohn.  He said the city is sitting in a very good position without the gym

PREPARING DIETHELM PARK SITE
BIDS TO BE RECEIVED BY AUGUST 8TH
Council ordered several site improve-ments at Diethelm Park on July 11th.  The improvements include construction of the north parking lot and the main parking lot, with bituminous surface, concrete curb and gutter, parking lot lighting system, area wide storm sewer and storm sewer ponds, concrete sidewalk, bituminous trails, paved outdoor rink area, water and sanitary sewer improvements, grading, water and sewer services, concrete front plaza, access walkways and driveways, and landscaping for the new field house.
Council's authorization allowed staff to place the ad for bids and to receive bids on August 8th.  It is anticipated that staff will be making a recommendation to a-ward the project at the August 8th council meeting.  It is anticipated that construc-tion work will be completed in ten weeks, or by November 1st.  Stated Councilmember Jerry Bohn, "It'll be a great park by next summer."

GETTING CONNECTED WITH LAKETOWN TOWNSHIP
AS ANNEXATION PETITIONS ARE ANTICIPATED
City Planner Mark Kaltsas reported on July 25th that he met with Laketown Township about the upcoming release of Victoria's development moratorium.  When the moratorium is lifted at the end of October, 2002, the city anticipates developers requesting annexation of adjacent township properties into the city in order to have access to the city's utility improvements for development.
Said Mark, "I gave the township re-assurance on how we'd proceed with annexation.  They asked if council would allow some liaison from the township to sit in our Planning Commission, not as a voting member, but to be included, for more participation as they become more a part of Victoria, so they feel more con-nected.  I think it's appropriate."
"I'd encourage that," said Council-member Jerry Bohn. 
Administrator Steve Sarvi said that such a cooperation worked very well be-tween the City of Watertown, where he serves as mayor, and Watertown Town-ship.
Click here to continue August 2002 City Scoop