04-27-2020 Council Packet - Laserfiche WebLink

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CITY COUNCIL WORK SESSION DRAFT 6 - Bond issuance process timeline; 225 - Sources and Uses of funding needed; 226 - Estimated debt service requirements (since there would be no levy, planned debt service 227 wouldn’t exceed project budget amount); 228 - Possibility of alternative methods of sale (due to current pandemic situation); 229 - City’s curr ent bond rating (last sale); 230 - Schedule moving forward. 231 232 Councilmember Stoesz asked if there would be any clear financial benefit to holding off on 233 this. Finance Director Cotton explained that the City has a pay request related to this 234 project coming to the council soon; she has discussed a delay with Ms. Heaton who 235 assured her that bids are coming in well. She explained that there is the opportunity to 236 reject in the future also. 237 238 Councilmember Lyden asked about the bond rating. He sees the positive impact of a high 239 bond rating to the City’s financing cost . With projects ahead, will the rating be stable? 240 Ms. Cotton said she anticipates the City will be able to maintain its high rating; although 241 the City’s debt may look high, revenue sources for that debt vary and that’s a positive. 242 243 Mayor Rafferty likened a big project such as the water tower to paying a mortgage for a 244 large purchase such as a home. Stretching the project cost out allows current and future 245 residents to pay for the benefit. 246 247 Councilmember Stoesz asked if a water tower could handle an earthquake. City Engineer 248 Hankee explained that structural designs include consideration of project locations; 249 Minnesota isn’t a zone where earthquakes are part of the consideration. 250 251 The council concurred with moving forward. The bond sale will be considered at the 252 second council meeting of April. 253 254 Mayor Rafferty asked Community Development Director Grochala what kind of actions 255 are going on right now in the construction area. City Engineer Hankee explained that 256 pilings and some structural work is underway. 257 258 6. Communications Coordinator – Administrator Karlson explained that he is 259 recommending creation of a Communications Coordinator position for the City. This 260 comes forward because it is an important need right now. Recent issues in the City have 261 highlighted the need for centralized communications. He explained how elements of the 262 website are handled by different areas in City Hall; a Facebook page for the City is also a 263 good idea. Mr. Karlson proceeded to explain that he has identified funding from the 264 communications fund (cable fees) that could partially fund this position. He noted the 265 proposed salary range. Additional funding would come from reorganizing staffing, 266 including eliminating some hours in other areas. Staff feels this would be an efficient way 267 to centralize communications. He sees this as a weak link in staffing. 268 269