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• <br />• <br />• <br />CITY COUNCIL WORK SESSION -3- August 4, 2008 <br />APPROVED <br />92 <br />93 Ms. Heaton suggested that if they (Springsted) are to actively participate in meetings such <br />94 as the charter commission, that will be time consuming and it will increase the cost <br />95 estimate. <br />96 <br />97 It was suggested that framing the background information and proceed from that point it <br />98 should help. <br />99 <br />100 Council concurred that Springsted should move ahead on the preliminary work and keep in <br />101 touch with staff so the council can be kept up to date. Authorization to proceed with the <br />102 arrangement with Springsted will be added to the council agenda for Monday, August 11. <br />103 <br />104 3. Town Center Update - Finance Director Rolek noted reviewed the previous <br />105 discussions about the Town Center financing situation (assessment delinquencies). <br />106 Options discussed have been utilizing an interfund loan, general tax levy or a bond <br />107 refunding strategy. He introduced the city's financial advisor, Terri Heaton of Springsted, <br />108 to discuss refunding options. <br />109 <br />110 Ms. Heaton, Springsted, Inc. explained that the bonds that the council is looking at are <br />111 assessment related so; ultimately, they will be paid. She distributed a chart indicating <br />112 possible refunding options. The council should consider what to do until the payments <br />113 come in. Three options were presented — a fixed advance through 2011 where there is a <br />114 balloon payment in 2011 and then regular payment resume; a full advance through 2013; <br />115 and a change to a variable rate. The information presented for council review — a decision <br />116 does not need to be made this evening. <br />117 <br />118 A council member commented that one consideration in the decision could be that <br />119 allowing more time allows the city to stay within the original plans for the development <br />120 area. <br />121 <br />122 Finance Director Rolek suggested that the council should make a decision this fall. To <br />123 preserve future options, a refunding is the preferred option. <br />124 <br />125 The council confirmed that the bonds will be marketable if offered. <br />126 <br />127 There was discussion about who actually owns the property in question (the land is held by <br />128 Marshall — representing all the banks involved). <br />129 <br />130 There was concerned expressed that a variable rate would be more risky with the public <br />131 dollar. <br />132 <br />133 The council asked for more information on "interest rate swapping" and Ms. Heaton <br />134 suggested that she will review that possibility. <br />135 <br />136 Staff will return next month with a recommendation. <br />137 <br />