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Mourns ViEw <br />City of Mounds View Staff Report <br />Item No: 5.K. <br />Meeting Date: December 14, 2020 <br />Type of Business: Council Consent <br />Administrator Review: <br />To: Honorable Mayor and City Council <br />From: Mark Beer, Finance Director <br />Item Title/Subject: Resolution 9363 Authorizing Payoff and a Budget <br />Adjustment to facilitate retirement of the Energy Savings <br />Program Capital Lease <br />Background: <br />The City Council authorized a capital lease for the Energy Savings Program (ESP), which <br />paid for various energy saving improvements to City Hall, the Community Center, and the <br />trail -way lighting system. The capital lease has an interest rate of 3% and remaining <br />interest of $48,270. Current Investment rates are extremely low (0.05 — 0.30%) it would <br />make sense to retire the capital lease which would save approximately $31,000 over the <br />life of the lease after taking into account potential investment earnings. The payoff is <br />$510,525.85, which would come out of surplus funds and fund balance in 2020. <br />Recommendation: <br />Staff recommends payoff of the ESP capital lease and adjusting the impacted budgets in <br />the General, Community Center, and Street Light funds. <br />Respectfully submitted, <br />Mark Beer, Finance Director <br />