11-25-2013 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL NOVEMBER 25, 2013 FINANCING- City to preserve existing cash while also avoiding a tax levy going PUBLIC WORKS/ forward (2015 through 2034) through the use of depreciation proceeds PARKS FACILITY from the water and sewer funds. The Administrator indicated that the City could pay for this project with cash, but given low interest rates and the likelihood that these rates will increase, it is felt that financing the project is the most economically feasible option. The bond amount is proposed at $2,570,000, with average debt service at $190,000 per year. The City currently depreciates $300,000 per year from the water and sewer fund; therefore, there would be $1 10,000 left per year for other projects such as inflow /infiltration reduction, lift station rehab, etc. The Administrator noted that previously bond levies of this type would require a referendum. The State Law was changed so that a referendum is not required; however, this action would be subject to a reverse referendum. If the City receives a petition within 30 days of the public hearing on the intention to issue these bonds, the matter would have to go to a referendum. That petition would need to be signed by eligible voters equal to 5% of the number of voters in the last general election. The Administrator noted that should a petition be received, the City could decide to move forward with the referendum, or it could pursue other financing options for the facility. Blesener noted that because debt service would be paid with sewer and water depreciation dollars, property owners would see no change in their property taxes as a result of this bond issue after the 2014 tax levy. The Administrator replied that that was correct. Boss introduced the following resolution and moved its adoption: RESOLUTION NO. 2013 -11 -219 — CALLING A PUBLIC HEARING ON THE INTENTION TO ISSUE GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS AND THE PROPOSAL TO ADOPT A CAPITAL IMPROVEMENT PLAN THEREFOR FOR WEDNESDAY, DECEMBER 18, 2013 AT 7:30 P.M. The foregoing resolution was duly seconded by McGraw. Ayes (4). Nays (0). Resolution declared adopted. CALL The City Administrator recommended that the Council call for a 2014 2014 BUDGET Budget Workshop meeting to review the warming house project, Fire WORKSHOP Relief Benefit contribution, Paid Time Off (PTO) program, and seasonal wages. 9