Minutes - Council - 05/23/2000 - Laserfiche WebLink

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Motion by Councilmember Hendriksen and seconded by Mayor Gamee to select Tom O'grien as the artist to redesign the City's logo. Mr. O'Brien's submittal is consistent with the City's criteria for design and within budget for the project. Motion failed. Voting Yes: Mayor Gamec, Councilmember Hendriksen. Anderson, Connolly, and Zimmerman. Absent: None. Voting No: Motion by Councilmember Zimmerman and seconded by Councilmember Anderson to table the matter until the next work session. Motion carried. Voting Yes: Councilmembers Zimmerman, Anderson, and Connolly. Voting No: Mayor Gamec and Councilmember Hendriksen. Absent: None. Case #2: Accepting Proposals on the Sale of General Obligation Tax Increment Bonds Finance Officer Lund explained that included in the 2000-2004 CIP were projects for the construction of a second water tower and a fifth well. Based on recommendations of a water system study performed in 1999, Council authorized the approval of these two projects. At the April 25, 2000 City Council meeting, the Council authorized the sale of $1,695,000 in General Obligation Tax Increment Bonds with a bond sale date of May 23, 2000. The proposed costs of water tower #2 and well #5 are $1,870,000 and $440,000, respectively. It is proposed that funding for tower #2 will consist of$1,211,000 in TIF funds with the remainder being paid from the utility funds. Well #5 will be funded in total from TIF funds. TIF funding will be financed from the issuance of the $1,695,000 General Obligation Tax Increment Bonds. Staff recommends that Council adopt a resolution awarding the sale of $1,695,000 General Obligation Tax Increment Bonds, Series 2000B. Ms. Kathy Ahoo, from Springsted, Incorporated, noted this bond buyer's index is for 20 year high grade securities. She added interest rates are moving up. Ms. Ahoo stated the rates are higher than were expected. She noted the City's A-1 rating has been re-confirmed. She added an A-1 rating is the highest and the City should be commended on its sound financial opportunities. She stated there is anticipated population growth. She noted the winning bidder was Cronis & Company. She added the annual balance is between $55,000 and $60,000. Mayor Gamec asked why it fell below what bonds have been sold for lately. Ms. Ahoo responded it is a result of a combination of factors including the length of the bonds. She noted the longer the maturity, the higher the interest rate. She added the re-investment rate is also higher. Motion by Councilmember Connolly and seconded by Councilmember Zimmerman to adopt Resolution #00-05-126 awarding the sale of $1,695,000 General Obligation Tax Increment Bonds, Series 2000B; providing for their issuance; pledging for the security thereof tax increments, and levying a tax for the payment thereof. City Council/May 23, 2000 Page 7 of 36