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LAKE ELMO CITY COUNCIL MINUTES MARCH 3, 2009 2 <br /> <br /> <br /> <br /> <br />REGULAR AGENDA: <br /> <br />Announce and introduce the promotions of two new Captains, Barney Sachs and Mike <br />Cornell <br /> <br /> District Chief Brad Winkels introduced Lake Elmo firefighters Barney Sachs and Mike <br />Cornell, both of whom were recently promoted to the rank of captain. <br /> <br />Refunding of Bonds <br /> <br />Paul Donna, senior vice president with Northland Securities, explained given the <br />anticipated market for municipal bonds over the next few months, the City should <br />achieve notable savings in future interest costs. (The average interest rates of the current <br />bond issues are approximately 4.8%; the projected average interest rate is approximately <br />2.9 %.) By refunding the bonds, the City would be able to free up funds to address other <br />financial needs. <br /> <br />The two bond issues, under consideration, totaling just over $1 million in outstanding <br />principal are: 1) General obligation State Aid Street Bonds, Series 2001A and 2) General <br />Obligation Water Revenue Bonds, Series 2002B. <br /> <br />MOTION: Council Member DeLapp moved to adopt Resolution no. 2009-007 <br />authorizing the commencement of refunding State Aid Bonds Series 2001A, and Water <br />Improvement Bonds, Series 2002B, provided the total net savings is at least $60,000 and <br />to authorize the services of Northland Securities, Inc., for this transaction. Council <br />Member Smith seconded the motion. The motion passed 5-0. <br /> <br />Special Assessment Policy & Financing of Projects in 2009-2013 Streets Capital <br />Improvement Program (CIP) <br /> <br />Interim City Administrator Dawson requested the City Council determine the basis for <br />any special assessments to be used for projects in 2009 (i.e., a percentage of costs, or a <br />fixed dollar amount); and identify and direct staff to prepare any modifications the <br />Council wishes to make to the City’s policy. <br /> <br />Jack Griffin presented several options for how the Council could finance the $2.8 million <br />in local street improvements planned between now and 2013. Proposals had the net <br />effect of assessing individual property owners up to 30 percent of project costs over the <br />five-year period. If the City sells general obligation bonds to fund the work, at least 20 <br />percent of the cost must be paid for with assessments, and if assessments are substantial <br />the City must be able to prove that the property is benefiting to those amounts from the <br />street work.