06-13-2012 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL JUNE 13, 2012 dramatic drop in interest rates, this bond issue is a candidate to be refunded or simply paid off given the City cannot earn interest at the rates it is paying. The Administrator reviewed an updated spreadsheet showing that the net savings of refunding the bond would be $98,185 while the net savings to pay off the bond would be $101,900. He also noted that the interest rate the City would be paying on this bond issue ranges from 3.60% in 2013 to 3.80% in 2018. A new bond issue is estimated to have a rate of .40% in 2013 to 1.15% in 2018. The Administrator reported that Rusty Fifield of Northland Securities is reviewing the City's options for investing funds if the City chooses the refinancing option to determine which option is most beneficial to the City. The Administrator noted that the bonds are callable with 30 days written notice. The next payment date is August is`, therefore, the Administrator indicated that he would like to provide notice as soon as possible. Blesener asked if it would be preferable to refinance the bond and retain the City's cash for a project such as a new Public Works garage. The Administrator felt it would be more beneficial to pay off the bond, noting that debt can be issued for a Public Works garage project. He indicated that it appears the bond market will be favorable for a while. Mr. Keis introduced the following resolution and moved its adoption: RESOLUTION NO. 2012 -6 -103 — CALLING THE G. O. PERMANENT IMPROVEMENT BONDS 2007A WITH PAYOFF TO COME FROM THE 450 INFRASTRUCTURE FUND The foregoing resolution was duly seconded by McGraw. Ayes (5). Nays (0). Resolution declared adopted. MARKET The City Administrator noted the City has a 41,000 square foot site south VIKING of McDonalds in the area of Rice Street and Viking Drive. The City had DRIVE held off marketing the site until the completion of the Rice Street /36 PROPERTY bridge project. Late last summer the Council authorized RJ Marco Construction to market the property, but they have not been successful in finding a tenant. The Administrator indicated that he has discussed the potential uses of the site with Reg Plowman of RJ Marco, who indicated that it is not a true office site. The Administrator suggested that options to consider would be to market the site in a patient manner to try to obtain some type of office use 5