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M r. Donna indicated the numbers presented at the last work session represented the worst-case <br />scenario by showing everythinghappening at on9e' He agrees most importantly they need to let <br />thc project drive the financing. As he understands from the feasibility reports they have a total <br />dollar amount for projects that will occur in a timeframe up to five years. The City does have the <br />ability to bond for those projects now, but it woUld probably not be prudent. The objective <br />would be to design a financial plan that works Within the constraints and most importantly does <br />not expose the City to hardship in the fitture: <br /> <br />City Administrator Norman indicated the next time this is discussed, the projects could be <br />divided for discussion, rather than being discussed in one lump sum. <br /> <br />Councihnembcr Elvig stated he feels stronglY the variable bond may be the prefected method to <br />usc with the second bond. <br /> <br />Mayor Gamec expressed concern with variable rates due to the uncertainty of the rates in the <br />I'uture. <br /> <br />Mr. Donna discussed bond options with the Council. He advised the bottom line is when it is <br />time to bond it will be evaluated what the best option would be. <br /> <br />Councilnmn~ber Cook inquired about the City preparing to bond on the second project, due to the <br />good rates that are cun'ently available. <br /> <br />Mr. Donna replied there are ways to be prepared to enter the market with a basic financial plan to <br />proceed. <br /> <br />Councihnembcr Elvig asked if Mr. Donna is up to speed on the rest of the cash flows in the City. <br /> <br />Mr. Donna replied he has received updates on feasibilities. He will work with staff to make sure <br />the financing reflects the project costs and tie that together with a financial plan. The financing <br />will need to be tailored to be as efficient as possible. <br /> <br />Councihncmber Cook commented he does not know if there is a concem about lumping the <br />projects together for bonding as much as discussing it all together for the financing. He asked if <br />the projects can be considered individuallybut bonded as a group. <br /> <br />Fi nancc Officer Lund responded in the affirmative and explained the projects are assessed <br />individually. <br /> <br />Councihnembcr Jeffrey stressed the need to keep a close eye on the feasibility. He stated his <br />concern is not to have four individual projects as much as staggering them to the revenue coming <br />at the proper time to cover the bond payments. <br /> <br />City Administrator Norman indicated this discussion will likely be on the agenda of the first <br />work scssion in March, as well as the fiscal impact analysis. He would like to have the developer <br />and tile secondary developers attend to provide the Council with information on the projects. <br /> <br />Finance Committee/February 8, 2005 <br /> Page 2~ of 3 <br /> <br /> <br />