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