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Mr. Donna stated that is correct. There is a public hearing requirement but no direct referendum <br />requirement. <br />Finance Officer Lund noted these are very low interest rates. <br />Mr. Donna presented a graph of municipal bond rates, noting it is starting to move up a little, but <br />the two low points are the lowest interest rates since April 16, 1967. He advised that if the City <br />is considering refinancing, the sooner the better. <br />Councilmember Wise asked how long the process would take. <br />Mr. Donna explained the first step is to set the date for a public hearing, which will be <br />considered tonight, and recommended for March 6, 2012. After the public hearing, there is a 30- <br />day period during which they will visit with bond counsel to determine requirements and create a <br />calendar for the City Council to review. He advised the shortest time period from today would <br />be 40 days to effect the actual terms. <br />Councilmember Wise asked if the City locks in on a rate at some time <br />Mr. Donna answered in the affirmative. <br />City Administrator Ulrich asked when the City has to lock in and if the City could expedite the <br />process by one week if a special meeting is held. <br />Mr. Donna stated he discussed the schedule with Finance Officer Lund and determined March 6, <br />2012, is the earliest date for the public hearing. He indicated staff will discuss the date for <br />locking the rate with bond counsel and a big factor will be the City's comfort level to move <br />forward during the 30 days prior to closing. <br />Councilmember McGlone supported Scenario A since it will save $1.358 million on the life of <br />the loan. He stated he does not support extending out the debt term. <br />Councilmember Wise noted the reality is that there are budget issues that have to be dealt with, <br />which may result in, massive service and employee cuts, but there is not yet City Council <br />consensus on that issue. <br />Councilmember Elvig asked about present date value versus long -term cash value. <br />Mr. Donna explained that assuming savings each year, generating annual savings, the City can <br />reinvest those funds at least at the bond rate of the term. <br />Councilmember Backous supported Scenario C as striking a good balance between present value <br />savings and cash flow. <br />City Council Work Session / February 14, 2012 <br />Page 4 of 10 <br />