Minutes - Council - 10/14/2014 - Laserfiche WebLink

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Mayor Strommen extended the Council congratulations to Police Captain Katers. 7.02: Adopt Resolution #14 -10 -217 Providing for the Sale of $875,000 General Obligation Equipment Certificates, for 2015 -2017 Capital Equipment Purchases (50% funding) Finance Director Lund reviewed the staff report and recommendation to call for the sale of $875,000 of capital equipment certificate debt to fund 50% of the City's capital equipment to be purchased over the next three years. She explained this is a two -month process and action tonight does not yet approve the sale. Finance Director Lund reviewed the anticipated equipment purchases and explained that if the issue sells at a premium, it may make more than the face debt. In that case, the issue will be reduced. She noted there are currently low interest rates and presented the three options available for the Council's consideration. City Administrator Ulrich stated this item was part of the 2015 budget consideration. He complimented the Council and Finance Director Lund for their financial planning that will save the City money. Councilmember Riley agreed the sale of bonds is a good option to keep taxes low by utilizing City funds and borrowing at low rates. Motion by Councilmember Riley, seconded by Councilmember Tossey (for discussion), to Adopt Resolution #14 -10 -217 Providing for Sale of $875,000 General Obligation Equipment Certificates, Series 2014A. Further discussion: Councilmember Tossey stated he finds debt service to be a nagging issue that impacts whether taxes are raised or lowered. He reviewed the list of anticipated equipment purchases, noting all are needed. Councilmember Tossey stated he found this recommendation to be a better option since only half of the costs will be covered by issuing debt but cautioned the Council about issuing future debt. Mayor Strommen stated this option also does not spend down all of the City's one -time funds, considers the five -year plan, and assures the City's financial stability. Mayor Strommen complimented staff for its work on this recommendation. Councilmember LaTourneau also complimented staff for protecting the City's bond rating to assure it remains favorable. Motion carried. Voting Yes: Mayor Strommen, Councilmember, Riley, Tossey, Johns, Kuzma, and LeTourneau. Voting No: None. Absent: Councilmember Backous. 8. MAYOR, COUNCIL AND STAFF INPUT City Administrator Ulrich encouraged residents to take advantage of training on the first Monday of each month relating to the Heart Safe Community Program. Councilmember Johns reported on the success of Taste of Community in raising about $9,000 and thanked all who organized and participated in that event. City Council / October 14, 2014 Page 7 of 8