Laserfiche WebLink
Paul Donna, Northland Securities, presented a summary of the finance plan for the $675,000 <br />general obligation equipment certificates, He noted that $13,750 was the cost difference the City <br />incurred by having to sell the bonds publicly rather than privately because of the Charter School <br />bond issue. There has been discussion that the Charter School will be responsible for the <br />$13,750. <br /> <br />Councihnember Elvig questioned if the City has an agreement with the PACT Charter School to <br />pay the $13,750. <br /> <br />Finance Officer Lund replied no. She noted that members of the PACT Charter School were <br />going to be attending a work session later in the evening and she will be suggesting to them that <br />the $13,750 be added to their total bond amount when they go out for the bond. <br /> <br />Councilmember Strommen questioned what would happen if the Charter School were to back out <br />of the project would the City be responsible for the $13,750. <br /> <br />Finance Officer Lund replied yes. <br /> <br />Councihnember Elvig stated that he was anxious about the welfare of the school because they <br />will have to issue high risk bonds because no one know for certain what will happen with the <br />funding of the schools. He suggested waiving the $13,750 cost rather than adding additional <br />costs to the school. <br /> <br />Councilmember Strommen stated that the concern she has is that the issue of using the City's <br />name to bond for the PACT School has not come before the City Council and yet the City has <br />made different plans because of an issue that the Council has not considered or accepted. <br /> <br />Councilmember <br />pursuant to their <br />to incur fees in <br />included in their <br /> <br />Elvig suggested that City staff draft a letter to the Charter School stating that <br />request the City went forward and issued bonds as requested that forced the City <br />the amount of $13,750 and notifying them that that amount will need to be <br />bonds to pay back the City. <br /> <br />Councilmember Strommen stated that if the City Council had acted on a request and this was a <br />response to that it would be different but this is all happening on an issue that the Council did not <br />see. <br /> <br />Mr. Donna explained that as part of the bonding process they did go through a rating process as <br />well and the City did receive an A1 rating. They recognized the strong growing base, sound <br />financial management, the upcoming Town Center, and a manageable debt level. They also <br />recognized the future debt plans for construction projects and did talk about a new City <br />Hall/Police Facility. Those big picture items were discussed and included in the A-1 rating. <br /> <br />Councilmember Elvig replied that that was great news and requested a copy of the report. <br /> <br />Finance Committee/December 9, 2003 <br /> Page 3 of 6 <br /> <br /> <br />