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Mayor Ramsey stated he agrees with the premise of Councilmember McGlone to not extend <br />debt; however, in 2025 the value of the dollar may be considerably less than today. He noted <br />with present day value, it is probably better to save money now knowing that later on a dollar <br />will be worth less. He stated he would support Scenario C. <br />Councilmember Strommen concurred that Scenario C meets all of the current needs. <br />Councilmember Elvig expressed concern with taking one -time money or a one -time approach <br />and noted that having another $500,000 in cash flow is a huge opportunity. <br />Mr. Donna advised the new bond would allow another call feature so the bond can be refinanced <br />before the term, if desired. He stated he thinks that is likely to occur in 8 -10 years and result in <br />saving even more money and perhaps shortening the term. <br />Mayor Ramsey asked if there is another aspect with the City Hall to have more money coming <br />back. <br />Finance Officer Lund advised that the savings for 2012 of $492,000 will be available. <br />Mr. Donna stated he understands 2,000 sq. ft. of space is rented to another governmental entity <br />and there may be potential for additional space to be rented. <br />City Administrator Ulrich explained one of the budget options proposed to rent space to another <br />government agency. <br />Mr. Donna advised the bonds are issued under tax exempt status so if renting out space, it would <br />have to be to a governmental agencies and, in some cases, non - profit agencies. <br />Councilmember Tossey supported Scenario A because it saves $1.4 million over the term of the <br />loan and does not tie future Councils by extending the debt. However, if that is not an option, he <br />would support Scenario C. <br />Councilmember McGlone asked what is the penalty if renting space to a non - government entity. <br />Mr. Donna stated he is not certain but there could be a battle with the IRS as well as severe fines. <br />Councilmember Wise stated he had objected during the budget discussion to rent space because <br />he does not want the City to be a competitor to the private market and he thinks there was <br />consensus of the City Council on that point. <br />City Administrator Ulrich indicated there appears to be City Council consensus on Scenario C <br />and asked if there should be Council action. <br />Mayor Ramsey answered in the affirmative and asked if a public hearing would be scheduled at a <br />special meeting, a non - Council meeting night. <br />City Council Work Session / February 14, 2012 <br />Page 5 of 10 <br />