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CITY COUNCIL WORK SESSION <br />APPROVED <br />1 CITY OF LINO LAKES <br />2 MINUTES <br />3 <br />4 DATE September 3, 2019 <br />5 TIME STARTED 6:00 p.m. <br />6 TIME ENDED 8:00 p.m. <br />7 MEMBERS PRESENT :Council Member Rafferty, Maher, <br />8 Manthey, Stoesz and Mayor Reinert <br />9 MEMBERS ABSENT None <br />t0 <br />11 Staff members present: City Administrator Jeff Karlson; Public Safety Director John <br />12 Swenson; Community Development Director Michael Grochala; City Planner Katie <br />13 Larsen; Finance Director Sarah Cotton; Public Services Director Rick DeGardner; <br />14 Utilities Supervisor Justin Williams; City Clerk Julie Bartell <br />15 <br />16 Public Works Facility Financing — Finance Director Cotton noted that the City Council <br />17 and staff have been discussing the eventual replacement of the City's Public Work <br />18 Facility so staff thought it would be a good time to look at possible financing methods. <br />19 She introduced the City's financial consultant on the matter, Paul Steinman, of Baker <br />20 Tilly, to present information on financing possibilities. The information presentation is <br />21 based on a $6 million project. <br />22 <br />23 <br />Mr. Steinman noted the City's option for financing improvements (current revenues, <br />24 <br />capital reserve or issuance of bonds) He specifically discussed general obligation and <br />25 <br />lease revenue bonds. Utilizing a PowerPoint presentation, he offered information on: <br />26 <br />27 <br />- the City's authorization to sell bonds and types; <br />28 <br />- the requirements, limitations, etc. attached to the types of bonds; <br />29 <br />- estimated debt service for bonds, based on terms and type of bonds; <br />30 <br />- total cost estimates based on levy schedules (phased in with bonds coming off the <br />31 <br />books); Director Cotton explained how debt service could be covered with cash in <br />32 <br />order to keep a flat levy and still bring on the debt; <br />33 <br />- current rates on municipal bonds; <br />34 <br />35 <br />Council Member Manthey asked about pros and cons of the different types of bonds. <br />36 <br />Mr. Steinman suggested that one difference that is usually discussed is that some bonds <br />37 <br />carry the referendum possibility. <br />38 <br />39 <br />Mayor Reinert asked how many hours a day an average public service worker spends at <br />40 <br />the facility and Public Services Director DeGardner suggested they should be on the road <br />41 <br />pretty much all the time. Mayor Reinert noted his past comments about what the City <br />42 <br />would get with a new facility (and a big investment for it); he recognizes the importance <br />43 <br />of keeping equipment stored appropriately. He feels the discussion should be around the <br />44 <br />need associated with a facility and what the residents will get for their investment in one. <br />45 <br />