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LAKE ELMO CITY COUNCIL MINUTES JUNE 17, 2014 <br />Page 2 of 6 <br /> <br />ITEM 16: AUTHORIZATION FOR SALE OF $6,235,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2014A; RES. NO. 2014-44 <br />Finance Director Bendel introduced Tammy Omdal from Northland Securities. Ms. Omdal provided <br />overview of the bond sale. City received four bids. Low bid was from Piper Jaffrey at 2.61% true interest; Second lowest was from Baird at 2.67. Moody’s affirmed bond rating of Aa2. Standard & Poor’s upgraded <br />City rating to AA+. Upgrade focused on financial planning. The fact that City has planned for debt was recognized in ratings. Northland recommends approval of sale at 2.61%. <br />Council Member Reeves asked about what cash flow “best case scenario” was. It was explained that the best <br />case described is realistic and conservative estimate and not best that could ever be. <br />MOTION: Council Member Reeves moved TO APPROVE RESOLUTION NO. 2014-44, AWARDING <br />THE SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE <br />PAYMENT OF $6,235,000 GENERAL OBLIGATION BONDS, SERIES 2014A. Council Member Nelson seconded the motion. <br />Council Member Reeves acknowledged Finance Committee and staff’s work on this. Mayor and Council Member Nelson also commended the job well done. <br />MOTION PASSED 3-0. <br />ITEM 17: 2013 COMPREHENSIVE ANNUAL FINANCIAL REPORT AND MANAGEMENT <br />LETTERS PRESENTATION <br />Finance Director Bendel introduced Jason Miller from Schafer, Smith & Associates. Mr. Miller provided <br />summary of the financial report. City received an unqualified audit opinion. There were no Minnesota Legal Compliance exceptions in 2013. Undesignated general fund balance was 66% of 2013 expenditures. Bonds <br />and certificates outstanding of $19,007,000 at 12/31/2013. <br />Audit findings: limited ability to segregate internal controls due to size of City staff. This is common with <br />cities the same size. Recommend that utility billing software be upgraded to improve efficiency. <br />Council Member Nelson asked about DEED funding and the impact on the undesignated fund balance. If <br />the $500K were put back in the fund, the balance would be closer to the previous 80-88%. <br />MOTION: Mayor Pearson moved TO ACCEPT THE 2013 COMPREHENSIVE ANNUAL FINANCIAL REPORT AND MANAGEMENT LETTERS. Council Member Nelson seconded the motion. <br />Council Member Reeves said the report is evidence that the City is fiscally responsible and looking out for the <br />taxpayers and residents. Mr. Miller echoed those comments. <br />MOTION PASSED 3-0. <br />ITEM 18: 2014 BOND RATING REPORT – STANDARD & POOR’S/MOODY’S <br />City Administrator Zuleger provided overview of the two bond ratings. S&P = AA+/Stable (upgraded). Moody’s = Aa2 (sustained). <br />Council Member Nelson asked current equalized value. $1.3 bil. Significant value when you look at the <br />population. Rating also looks at school district and county. Washington County is Aaa. Stillwater ISD is Aa2. <br />Council Member Reeves asked that the report be put online. Mr. Zuleger stated it would be. <br />No formal action requested. <br />ITEM 19: WILDFLOWER AT LAKE ELMO CONCEPT PLAN; RES. NO. 2014-45, RES. NO. <br />2014-46 <br />Community Development Klatt provided overview of the proposed PUD concept plan. Mr. Klatt explained <br />the staff and Planning Commission comments. Planning Commission recommended approval with 2 <br />additional conditions.