09/09/1996 Council Minutes - Laserfiche WebLink

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COUNCIL MINUTES SEPTEMBER 9, 1996 Consideration of an Agreement with Springsted, Inc. for Arbitrage Monitoring - Mr. Shannon explained that with the issuance of the bonds described above, the City has exceeded the $5,000,000 limit required for arbitrage reporting. In order for the City to be able to issue future municipal debt, it is now committed to provide ongoing disclosure as required as well as arbitrage reporting. Springsted has offered to assist the City in this undertaking. Springsted's would be $400 annually and, if an official statement is due in a year that no debt is issued, an additional fee of $1,300 per debt will be charged. Mr. Shannon explained that due to the complex rules and regulations as well as potential liability involved in this process, many cities contract with Springsted to supply this service. Council Member Kuether asked why the fee to Springsted would be so much higher in a year that no debt is issued. Mr. Shannon explained that in a year of no debt, additional documentation must be prepared for secondary market disclosure whereas in a year when municipal debt is issued this documentation is prepared in conjunction with the regular handling of the bond issue. Council Member Kuether moved to approve the agreement with Springsted, Inc., as presented. Council Member Lyden seconded the motion. Motion carried unanimously. Set Truth in Taxation Hearing, December 5, 1996, 6:00 P.M. - Ms. Vaske explained that all government entities are required to hold Truth in Taxation hearings to receive public input on the proposed levy and general operating budget. Counties and school districts get first choice for dates, and cities may not hold their hearings on the same dates. Ms. Vaske added that because of the League National Convention, the only date available is December 5, 1996, with the reconvening meeting, if needed, to be December 12, 1996. Final adoption of the 1997 tax levy and general operating budget will take place at the final Council meeting of the year on December 16, 1996. The time for these hearings would be 6:00 P.M. Council Member Kuether moved to approve setting the Truth in Taxation Hearing for December 5, 1996 at 6:00 P.M. Council Member Bergeson seconded the motion. Motion carried unanimously. Consideration of Resolution No. 96 - 118, Adopting the Proposed 1996 Tax Levy Collectable in 1997 - Ms. Vaske explained that Truth in Taxation requires that the City adopt a proposed 1996 tax levy on or before September 15 of each year. The proposed levy may be decreased when the final levy is adopted on December 5, but that the final levy cannot be more than the proposed levy. Ms. Vaske added the total levy includes funds for the general operating budget as well as for general bonded debt, and will be further reviewed by Council and Staff between September 15 and November 22 for any necessary changes. Council Member Lyden requested further discussion, as in reviewing the budget he is concerned about going forward with the 2.25% increase. Council Member Kuether agreed that prudent review is called for. Council Member Lyden moved for a zero levy increase for 1997. Council Member Kuether seconded the motion for purposes of discussion. Council Member Bergeson reminded Council that one reason to approve the proposed levy was the possibility that general obligation funds might be used for road reconstruction. If that happens and there is no room in the budget to accommodate this work, it would have to be