ccm19680123COMMON COUNCIL CITY OF MUSKEGO
L
MINUTES OF MEETING TO DISCUSS FINAN ING OF THE CITY'S
SEWER PROGRAM HELD TUESDAY EVENING, JANUARY 23, 1968, 7:oo P. M., JUST PRIOR TO THE REGUL R COMMON COUNCIL
MEETING.
_-A'
flAyoR GOTTFRIED DECLARED THE MEETING OPEN AT 7:1Q p. M.
PRESENT: MAYOR GOTTFRIED, ALDERMEN BUDISH, JoOST, LENTINI,
LINCK, NARLOCK, WIESELMANN AND MOLLMAN, DEPUTY CLERK JUNE
ELGER, CITY ENGINEER JOHN MIELKE, ATTORNEY JERRY HAMMOND,
AND ROBERT BRUSSAT OF THE &LWdUKEE COMPANY.
CITY ENGINEER MIELKE REVIEWED THE REPORT ON ASSESSMENTS FoR
THE SANITARY SEWER INSTALLATION IN ASSESSMENT DISTRICT #3,
HE ADVISED THAT THE NET AMOUNT TO BEFINANCED WOULD BE $1,344,396.00. HE ALSO POINTED OUT THAT SEWER SIZE WOULD
RUN BETWEEN 8" AND 21", THAT WHEN THE ASSESSMENT ROLL WAS
COMPUTED, COST FOR DEEPER & LARGER SEWERS, ETC., WAS
INCLUDED IN THE COMPUTATION AND THAT ASSESSMENT BASED ON
THE AVERAGE COST OF AN 8" SEWER. MR. MIELKE ALSO REVIEWED
THE ASSESSMENT POLICY FOR CONSTRUCTION OF THE SANITARY
SEWERS ELABORATING SOMEWHAT ON THE FORMULAS USED. HE IN-
D.ICATED THAT ALL PROPERTY OWNERS WILL BE CONTACTED PRIOR
TO INSTALLING XHE LATERALS.
THIS MEETING WAS ADJOURNED AT 7:15 P. M. FOR THE WESELJACK
PUBLIC HEARING AND RESUMED AT 7:20 P. M.
MR. BRUSSAT REVIEWED A COMMUNICATION FROM THE MILWAUKEE Co.
DIRECTED TO MAYOR GOTTFRIED OCTOBER 4, 1967, OUTLINING
THE SUMMATION OF THE SANITARY SEWER PROJECT, BASED ON THE
MAY, 1967, FIGURES OF RUEKERT & MIELKE.
ATTORNEY HAMMOND ADVISED THAT THE NEXT STEP WILL BE DETER-
MINING THE PORTION OF THE ASSESSMENT WHICH WILL BE PAID
IN CASH, AFTER WHICH THE BALANCE TO BE FINANCED CAN BE
COMPUTED.
IN ANSWER TO A QUESTION FROM ALDERMAN NARLOCK, MR. BRUSSAT
ADVISED THAT THE MARKET IS VOLATILE, THAT THE GENERAL
MARKET IS IN A POOR STATE, THAT PROGNOSTICATIONS ARE THAT
INTEREST RATES WILL RAISE. HE POINTED OUT THAT IT Is HARD
TO PREDICT THE MARKET FROM DAY TO DAY OR MONTH TO MONTH.
ALDERMAN NARLOCK QUESTIONED IF THERE IS ANY WAY TO DELAY
FLOATING THE BONDS AND MR. BRUSSAT ADVISED THAT IT CAN BE
DELAYED BY USING TEMPORARY FINANCING.
ALDERMAN JOOST QUESTIONED IR THE SIZE OF THE BOND ISSUE
WOULD MAKE ANY DIFFERENCE IN THE AMOUNT OF INTEREST PAID>
* UP.
THAT PERHAPS A LONGER RANGE BONDING PROGRAM COULD BE SET
ATTORNEY HAMMOND POINTED OUT THAT GENERAL OBLIGATION
BZ,NDs AND REVENUE BONDS CAN'T BE COMBINED, THAT IT WOULD
NOT BE WISE To BUY MORE BONDS THAN NEEDED AND To INVEST
THE MONEY UNTIL SUCH A TIME AS IT Is NEEDED*
ALDERMAN JARLOCK QUESTIONED HOW BONDS ARE RATED AND WHAT
AFFECTS THE RATES. MR. BRUSSAT ADVISED THAT THE HIGHEST RATE IS AAA, AA NEXT AND BAA IS "POISON" IN tiIscoNsIN.
PAGE 2 - SEWER MEETING
JANUARY 23, 1968
HE ADVISED THAT RATES ARE DETERMINED FROM THE FOLLOWING -
EQUALIZED VALUATION AND DEBT RELATED TO THIS VALUATION;
DEBT PER CAPITA (OVERLAPPING DEBT - PORTION OF COUNTY'S
DEBT ATTRIBUTABLE TO MUSKEGO, SCHOOL DISTRICT DEBT, ETC.,
DETERMINE PER CAPITA DEBT); AGRICULTURE dREAS CARRY A GOOD
RATING; PAST HISTORY OF A COMMUNITY AFFECTS THE RATES;
HOW CLOSE THE DEBT WILL BE TO THE MAXIMUM BORROWING POWER:
SCHOOL DISTRICT DEBT; GOOD INDUSTRY HELPS d GOOD RATING
VS. BAD INDUSTRY.
ALDERMAN ~~ARLOCK QUESTIONED THE HISTORY OF DEFAULT ON
MUNICIPAL BONDS AND MR. BRUSSAT ANSWERED THAT THERE HAVE
BEEN SOME CASES IN SOUTHERN STATES - NONE IN MIS. HE
ADVISED THAT iJISCONSONITES ARE VERY STRONGLY COMPELLED
TO MEET THEIR TAXES AND ARE A HIGH RATED STATE IN THE
MIDWEST.
THE MEETING WdS DECLARED CLOSED AT 7:.50 P. M.
RESPECTFULLY SUBMITTED,
BARBARA 5. SAND.3
RECORDING SECRETARY
BJS
1-30-68