09-23-2019 Council Packet - Laserfiche WebLink

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CITY COUNCIL WORK SESSION DRAFT 1 CITY OF LINO LAKES 1 MINUTES 2 3 DATE : September 3, 2019 4 TIME STARTED : 6:00 p.m. 5 TIME ENDED : 8:00 p.m. 6 MEMBERS PRESENT : Council Member Rafferty, Maher, 7 Manthey, Stoesz and Mayor Reinert 8 MEMBERS ABSENT : None 9 10 Staff members present: City Administrator Jeff Karlson; Public Safety Director John 11 Swenson; Community Development Director Michael Grochala; City Planner Katie 12 Larsen; Finance Director Sarah Cotton; Public Services Director Rick DeGardner; 13 Utilities Supervisor Justin Williams; City Clerk Julie Bartell 14 15 Public Works Facility Financing – Finance Director Cotton noted that the City Council 16 and staff have been discussing the eventual replacement of the City’s Public Work 17 Facility so staff thought it would be a good time to look at possible financing methods. 18 She introduced the City’s financial consultant on the matter, Paul Steinman, of Baker 19 Tilly, to present information on financing possibilities. The information presentation is 20 based on a $6 million project. 21 22 Mr. Steinman noted the City’s option for financing improvements (current revenues, 23 capital reserve or issuance of bonds) He specifically discussed general obligation and 24 lease revenue bonds. Utilizing a PowerPoint presentation, he offered information on: 25 26 - the City’s authorization to sell bonds and types; 27 - the requirements, limitations, etc. attached to the types of bonds; 28 - estimated debt service for bonds, based on terms and type of bonds; 29 - total cost estimates based on levy schedules (phased in with bonds coming off the 30 books); Director Cotton explained how debt service could be covered with cash in 31 order to keep a flat levy and still bring on the debt; 32 - current rates on municipal bonds; 33 34 Council Member Manthey asked about pros and cons of the different types of bonds. 35 Mr. Steinman suggested that one difference that is usually discussed is that some bonds 36 carry the referendum possibility. 37 38 Mayor Reinert asked how many hours a day an average public service worker spends at 39 the facility and Public Services Director DeGardner suggested they should be on the road 40 pretty much all the time. Mayor Reinert noted his past comments about what the City 41 would get with a new facility (and a big investment for it); he recognizes the importance 42 of keeping equipment stored appropriately. He feels the discussion should be around the 43 need associated with a facility and what the residents will get for their investment in one. 44 45