06-26-2013 Council Workshop Minutes

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MINUTES CITY COUNCIL JUNE 26, 2013 maintain the City's liquidity as well as lock in a low interest rate. The Administrator stated that if the Council is agreeable, he would contact the City's Financial Advisors to review options and make a recommendation Blesener pointed out that it would be financially beneficial for the City to undertake the project now so that the bonded debt would become a part of the 2014 levy increase. The City Administrator explained that the Legislature imposed levy limits for 2014 in addition to a revision in the Local Government Aid (LGA) formula which results in more aid to Little Canada. The Administrator stated that the thought is that the levy limits will force cities to utilize LGA dollars to offset General Fund expenses. The Administrator then went on to explain the benefit of bonding for the Public Works garage in relation to the levy limits. The Administrator stated that while his is not advocating debt to pay for the project, it may be the most beneficial means of financing this project. He noted that payment on the debt could be done with depreciation dollars typically transferred to Fund 604 from Water and Sewer. He again suggested that the City's Financial Advisors review this matter and make a recommendation. Montour asked if the City would sell tax - exempt bonds. The Administrator suggested that the bonds would be General Obligation Revenue Bonds with a 20 year period at an estimated interest rate of 2.5% to 3.5 %. The consensus of the Council was that the City's Financial Advisors should be asked for a recommendation on the best way to finance a new Public Works garage. The Council asked if energy audits have been done on the City's buildings. The Parks Director stated that a lighting audit was done on the Fire Station. The Administrator suggested that it may be worthwhile to do energy audits on the City's buildings, and suggested that there may be grant programs in addition to energy savings that will offset the cost of the audit and resulting improvements. These audits and improvements could be coordinated with the Public Works garage project. The Parks Director thought that Xcel Energy did the Fire Station audit and there was no charge for that audit. The Parks Director reported that the Parks Commission has discussed the potential of acquiring the Centerville Road property between Pioneer Park and the property that the City is acquiring for the Public Works garage. The Director asked the Council to consider obtaining a first right of refusal for this site. Montour suggested that staff approach the owners to ask if they would consider granting the City a first right of refusal. 4