Agenda Packets - 1998/08/24 - Laserfiche WebLink

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Item No. /13 Staff Report No. Meeting Date: August 24, 1998 Type of Business: CB WK: Work Session;PH:Public Hearing; CA: Consent Agenda;CB:Council Business City of Mounds View Staff Report To: Honorable Mayor and members of the City Council From: Bruce Kessel, Finance Director Item Title/Subject: Authorize retaining Public Financial Management as the City's Financial Consultant Date of Report: August 17, 1998 The City of Mounds View presently has six bond issues outstanding; the bonds were issued several years ago. As bonds are paid off and interest rates change, it is prudent to periodically review refunding opportunities for the possibility of reducing the City's debt service cost. In addition, we are in preliminary discussions with developers of the Mermaid project. If the project proceeds, it appears that we would need to issue bonds to provide the necessary financing for the project. It would be prudent to have a financial consultant review the project and preliminary development agreement prior to its being finalized to insure that we address all the issues that will make any bonds marketable with the best terms. As such, it would appear prudent to retain a financial consultant at this time. In the past, I have worked with three firms that provide financial consulting services in Minnesota. Based upon my experience, Public Financial Management, Inc. appears to provide the best service at the lowest cost. Its 1998 rates for a bond issue are $13,500 plus the actual cost of printing the Official Statement. For the Mermaid project, if bonds are issued,there would be no additional fee for the preliminary work relating to reviewing the project and development agreement. However, if the project did not proceed and bonds are not issued, we would be billed for actual time not to exceed $4,500. In comparison, in prior years, we have used Springsted, Inc. Springsted's fees for the Community Center project were in excess $15,575 when no bonds were issued; for bond issues, their charges exceed$20,000 plus printing costs. Conclusion Public Financial Management, Inc. appears to provide the best financial advisory service at the lowest cost and as such, it is recommended that the City Council adopt the attached resolution retaining Public Financial Management as the City's Financial Advisory Consultant.