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<br /> <br /> <br /> <br />Council Worksession <br />December 9, 2014 <br />5:00 pm <br /> <br />Present: Mayor Dave Jacobsen <br /> Councilmember Gina Bauman <br />Councilmember Brian Strub <br /> Councilmember Paul Jacobsen <br />Councilmember Mary Burg <br />Absent: <br /> <br />Staff in Attendance: Dean Lotter, Brenda Davitt-Finance Director <br /> <br />Guests in Attendance: Mark Ruff, Ehlers & Associates and Jason Aarsvold, Ehlers & Associates <br /> <br />Bond Refinancing Discussion <br />Lotter explained that Finance Director Davitt would be addressing this matter with the Council. <br /> <br />Finance Director Davitt reported the Council was being asked to consider bond refinancing options. She <br />explained that for the 2007A and 2009 bond series the City had the money to pay off these bonds. It was noted <br />that staff would be coming before the Council in January of 2015 to suggest these bonds be paid off to avoid <br />paying any further interest. She reported that staff needed further comment from the Council on how to <br />proceed with the 2006 GEO TIF. She indicated Mark Ruff was in attendance to discuss this matter with the <br />Council. <br /> <br />Mark Ruff, Ehlers & Associates, discussed the 2006 GEO TIF bonds in detail with the Council. He noted an <br />escrow account would be needed if they were to be refinanced. He commented that he wanted to assist the <br />City with saving money and a crossover advanced refund may be the Council’s best option. He provided <br />further comment on the current market for bonds along with interest rates. He advised the Council of the <br />savings of acting now versus waiting two and one-half years for the bond call date. He explained it was his <br />goal to be very transparent through the entire process. <br /> <br />Councilmember Bauman believed that interest rates would only go up over time. Mr. Ruff recommended that <br />the 2007 bonds be left alone. <br /> <br />Mayor Jacobsen recommended the Council discuss the savings for the 2006 bonds further. <br /> <br />Councilmember Jacobsen asked if the City would be able to lock in an interest rate at this time. Mr. Ruff <br />stated this was not possible. He explained that bonds were subject to supply and demand there was a constant <br />swing in the rates. <br /> <br />Finance Director Davitt summarized that staff would report back to the Council with additional information on <br />the 2009 bonds in January. She explained that a sustainability goal for her would be to increase the City’s debt <br />rating. She reported that an area that could be improved would be for the City to create a debt service policy. <br />She noted this would be further reviewed and discussed by the Council in January. She then discussed the <br />need for debt financing for the City’s 2013, 2014, and 2015 street improvement projects.