10-17-91 Council Workshop Minutes

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MINUTES OF THE WORKSHOP MEETING CITY COUNCIL LITTLE CANADA, MINNESOTA OCTOBER 17, 1991 Pursuant to due call and notice thereof a workshop meeting of the Council of the City of Little Canada, Minnesota was held on the 17th day of October, 1991 in the Council Chambers of the City Center located at 515 Little Canada Road in said City. Mayor Raymond Hanson chaired the meeting and called it to order at 12 Noon and the following members of the Council were present at roll call: MEMBERS PRESENT: Mayor Mr. Raymond Aanson Council Member Mr. Bill Blesener Council Member Mr. Jim LaValle Council Member Mrs. Beverly Scalze MEMBERS ABSENT: Council Member Mr. Rick Collova ALSO PRESENT: City Admin. Mr. Joel Hanson Springsted Mr. Brad Farnham Springsted Mr. Lee Brundell Recording Sec. Mrs. Kathy Glanzer The purpose of this meeting was to discuss debt service restructuring and refunding of an existing bond issue. Brad Farnham reported that based on direction from the City Administrator, he has done some modeling of the City's outstanding bond issues to determine if it is feasible to hold tax levies at a certain point, thereby evening out the debt service levy, rather than continuing the fluctuation in the levy that is scheduled over the next several years. Farnham presented the Council with comparisons of the City's existing debt service tax levies (Schedule A's), and proposed restructuring debt service levies (Schedule B's). Farnham reported that the proposal is based on very conservative numbers, that is assuming 90% collection rates for both special assessments and property tax levies, and assuming interest earnings of 5% on available cash balances. Farnham pointed out that in reality, the City's collection rates have been at the 97% to 98% level. Farnham also reported that the B Schedules make the following assumptions: Page 1