Agenda Packets - 2009/12/14 - Laserfiche WebLink

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Mounds View City Council November 23, 2009 Regular Meeting Page 8 9. JUST AND CORRECT CLAIMS 1 2 Finance Director Beer answered the Council's questions related to claims. Council Member 3 Stigney asked Finance Director Beer to provide additional information on the claim for a large-4 sized drill bit. 5 6 MOTION/SECOND: Mueller/Hull. To Approve the Just and Correct Claims as Presented. 7 8 Ayes – 5 Nays – 0 Motion carried. 9 10 10. APPROVAL OF MINUTES 11 12 None. 13 14 11. REPORTS 15 A. Reports of Mayor and Council. 16 17 Council Member Stigney commented on the Chamber of Commerce newsletter article listing 18 Mounds View attractions as being MultiTech and Sysco but no mention of MedTronic. When 19 asked, Chamber staff indicated there was not enough space to include mention of MedTronic. 20 21 Council Member Mueller announced that the Winter edition of Mounds View Matters is 22 available, reviewed information it contains, and how a copy can be obtained. Mayor Flaherty 23 mentioned the locations where copies are available. 24 25 B. Reports of Staff. 26 1. EDA to Consider Calling Bonds. 27 28 Finance Director Beer explained this item relates to the Tax Increment Revenue Bonds of 2001 29 that were issued on behalf of Mounds Vista, Inc. (The Mermaid) for the hotel redevelopment at 30 2200 County Highway 10. The EDA issued $815,000 of bonds that were callable any time after 31 August 1, 2008. With the potential sale pending on the hotel portion of the property, staff 32 deferred recommending any action on the bonds at that time. The hotel has since been sold. 33 Finance Director Beer advised the outstanding balance to be called is $345,000. He explained 34 that if the EDA were to redeem these bonds, it would save $46,950 in interest, $7,590 in trustee 35 fees, and the amount of interest earnings lost would be $16,800, resulting in a net savings of 36 $37,740. He advised that calling the bonds would not affect the financing of the street programs. 37 38 Council Member Mueller noted the report indicates a loss of $16,800 based on the interest the 39 bonds are earning. Finance Director Beer stated it is based on the City’s rate of interest earned. 40 Council Member Mueller asked if the net savings of $37,740 would be put into a bond to recoup 41 the lost interest earnings. Finance Director Beer explained the City is paying 7.5% interest but 42 only earning 2% to 2.5% so the benefit is roughly 5% on the funds. That money would be 43 apportioned to other economic development projects. 44 45