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September 12, 2017 Page 3 of 7 TIF Bonds. Motion by Councilmember Jacobsen, seconded by Councilmember Burg to adopt a Resolution Providing for the Sale of $5,040,000 G.O. Tax Increment Refunding Bonds, Series 2017A, fixing its form and specifications; directing its issuance and delivery; and providing for its payment to Refund the remaining 2007B G.O. Tax Increment Bonds . City Manager Lotter indicated Finance Director Davitt would be presenting this item to the Council. Finance Director Davitt explained the opportunity is available for the City Council to refinance the remaining portion of the G.O. Tax Increment Bonds, Series 2007B for interest savings purposes. The 2007B bonds became callable on August 1, 2017 and to achieve the most savings, a flat rate bank offering with Wells Fargo Bank was chosen. In this structure, the new bonds will be issued on September 19, 2017. As this issue is under $10,000,000 in principal and the only bonds issued by the City in the calendar year 2017, they received slightly lower interest rates as they qualified and designated as “bank qualified”. The remaining 2007B bonds maturing on Februa ry 1, 2018 and thereafter will be redeemed and prepaid on October 17, 2017. Jason Aarsvold, Ehlers & Associates, explained the City had received a very favorable interest rate on this bond sale. He discussed the terms of the sale in further detail and noted the City would be saving $447,000 through the proposed refinancing. Councilmember Burg stated she was pleased with the final interest rates. Councilmember Jacobsen thanked staff for all of their hard work on this bond refinancing project. Mayor Johnson thanked Ehlers and Finance Director Davitt for their efforts. She stated she really appreciated staff taking the initiative to save money on behalf of the City. Councilmember Bauman thanked staff, Ehlers and Wells Fargo for their assistance on the bond refinancing. 5 Ayes, 0 Nays -Motion Carried 2. Consideration of Resolution Directing Staff to Remove LGA from the General Fund and Add it to Street Program. Motion by Councilmember Jacobsen, seconded by Councilmember Strub to approve a Resolution D irecting Staff to Remove Local Government Aid (LGA) From the General Fund and Add it to the Street Program. City Manager Lotter indicated Finance Director Davitt would be presenting this item to the Council. Finance Director Davitt explained in 2013, Council voted to provide property tax relief with the 2014 LGA. This was done by depositing the revenue in the general fund to offset property tax levy needed to fund 2014 approved budgeted operations. This practice continued until 2016 when Council’s direc tive changed to not rely on LGA funding for operations but instead use the LGA revenue to help with capital expenses such as funding an internal loan fund for the Streets Reconstruction Program. This internal loan fund will help the City’s street program become debt free by 2025, lower street reconstructions costs, and allow interest paid to come back to the City to be used for future internal street reconstruction loans. It also allows the City Council to have more control of New Brighton’s debt instead o f relying on outside agencies. Councilmember Jacobsen explained the Council has been discussing this matter at recent worksession meetings. He stated he fully supported LGA being placed in the City’s Street Program in order to assist the Council in reaching its debt free goals. Councilmember Bauman requested further information on how staff was defining “minimally”. City Manager Lotter explained staff was proposing to move $257,000 in the proposed 2018 budget which would leave an additional $250,000 to be moved in 2019. He indicated the way the Resolution was drafted it would allow the Council to make adjustments to these proposed amounts. Agreement with Wells Fargo for the refinancing of the remaining $5,000,000 of the 2007B G.O. TIF Bonds. 2. Consideration of Resolution Directing Staff to Remove LGA from the General Fund and Add it to Street Program.