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City Council Regular Meeting Minutes November 10, 2015 Page 5 2 3 4 6 7 10 11 12 13 14 15 V. 16 17 VI. 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Ms. Rueckert showed the impact of the recommended rates on a residential customer at each tier level. Ms. Rueckert reviewed the water, sewer and stormwater rate increases, noting the multi -year approach has been a steady increase in rates. Mayor Faust noted the City is below operating costs and as improvements are needed, they can be paid with these incremental increases. Mayor Faust closed the public hearing at 7:52 p.m. Motion by Councilmember Jenson, seconded by Councilmember Brever, to approve First Reading of Ordinance 2015 -07 Setting Sewer, Water and Storm Water Charges for 2016. Motion carried unanimously (510) REPORTS FROM COMMISSION AND STAFF - NONE GENERAL BUSINESS OF COUNCIL A. Resolution 15 -066 — a Resolution Providing for the Sale of $4.445,000 General Obligation TIF Refunding Bonds, Series 2015B. Ms. Shelly Rueckert presented the Pre -Sale Report for the City of St. Anthony, $4,445,000 General Obligation TIF Refunding Bonds, Series 2015B. The proposed issue includes refinancing of the HRA's Tax Increment Revenue Bonds (Silver Lake Village Project), Series 2006 (Commercial TIF Revenue Bonds). Debt service is paid from TIF revenues generated from the commercial development and will continue to be paid from the same source. Interest rates on the obligations proposed to be refunded are .5% to 2.7 %. The refunding is expected to reduce interest expense by approximately $1.1 million over the next 16 years. The Net Present Value Benefit of the refunding is estimated to be approximately $947,264 equal to 22.992% of the refunded principal. This refunding is considered an Advance Refunding, as the new bonds will be issued more than 90 days prior to the call date of the obligations being refunded. The bonds are being issued for a 16 -year term. Principal on the bonds will be due on February 1 and August 1 starting 2016 through 2031. Interest is payable every six months beginning February 1, 2016. The bonds maturing on and after February 1, 2025, will be subject to prepayment at the discretion of the City on February 1, 2024, or any date thereafter. Ms. Rueckert stated the City's most recent bond issues were rated "AA" by Standard & Poor's. The City will request a new rating for the bonds. Ms. Rueckert provided the basis for the recommendation stating based on the knowledge of the City's situation, the objectives communicated, the advisory relationship, and the characteristics of various municipal financing options, the issuance of tax - exempt general obligation bonds as a suitable financing option is recommended for the following reasons: - The issuance is a viable option available to finance these types of projects under State law and Federal regulations. - This option is the most overall cost effective debt option from the perspective of marketability and interest rates. - The issuance of advanced funding bonds meets the City's desired savings expectations.