05-11-2020 Council Packet - Laserfiche WebLink

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COUNCIL MINUTES DRAFT 2 B) Consider Approval of April 6, 2020 45 Work Session Minutes Approved 46 C) Consider Approval of April 13, 2020 47 Council Meeting Minutes Approved 48 D) Consider Approval of Noise Ordinance Signage Approved 49 E) Consider Approval of Resolution No. 20-37, Approving 50 a Permit for Consumer Firework Sales at Target 51 Store 1448 Approved 52 FINANCE DEPARTMENT REPORT 53 2A) Consider Resolution No. 20-43, Providing for the Issuance and Sale of General 54 Obligation Utility Revenue Bonds, Series 2020A, in the Proposed Aggregate Principal Amount 55 of $4,800,000 – Finance Director Cotton reviewed the written staff report. The recommendation is 56 to move forward with the issuance and sale of bonds to finance the approved water tower project. 57 The bonds will be repaid over a period of 15 years. 58 Mayor Rafferty asked if there are important elements about this project that the council should 59 know. Ms. Cotton noted that the council adopted a resolution some time ago allowing the City to 60 pay for work that is done prior to receiving the bond proceeds; additionally there are measures in 61 place recognizing the current market. 62 Terri Heaton, financial consultant with Baker Tilly, reported. She explained that the resolution 63 authorizes a competitve sale on June 8, 2020 but if the market becomes volitale it allo ws for 64 flexibility. Mayor Rafferty asked if there is something to be cautiously looking at? Ms. Heaton 65 noted that the market has been pretty stable for the last few weeks, barring some volitilty tied to 66 certain types of announcements. 67 Council Member Cavegn asked, if the market does become volitale and bonds aren’t sold, what is in 68 place to pay expenses? Ms. Cotton said expenses would be paid with cash on hand, specifically from 69 the trunk utility fund and she is comfortable that could go on for some time. 70 Ms. Heaton noted that, from the bond side, the flexibility would be needed probably only up to two 71 weeks to a month if a delay is necessary. 72 Council Member Ruhland noted that he’s been watching the market closely. He is wondering if 73 there is any connection to what is occuring in the mor tgage based securities market. Ms. Heaton 74 noted twenty year markets and she feels that is back to stable post pandemic; we are in the early days 75 of pandemic, however, and so there could be changes ahead. 76 Council Member Stoesz asked, if there is a delay in construction due to social distancing, would 77 there be an impact on the bonds? Ms. Heaton explained that the City will have up to three years to 78 spend bond proceeds; past that, you can actually spread it out longer if necessary. 79 Council Member Ruhland asked about the interest rate; Ms. Heaton noted 1.93% for fifteen years. 80 Council Member Cavegn moved to approve Resolution No. 20-43 as presented. Council Member 81 Ruhland seconded the motion. Motion carried: Yeas, 5; Nays none 82 ADMINISTRATION DEPARTMENT REPORT 83