Laserfiche WebLink
<br />I <br /> <br />I <br /> <br />I <br /> <br />Council Meeting Minutes <br />January 14, 1997 <br /> <br />Page 4 <br /> <br />Consent A2"enda. continued <br /> <br />5. CONSIDERATION OF APPROVAL TO SET THE 1997 TOWN HALL <br />MEETING DATE AS SATURDAY, MARCH 22,1997. <br /> <br />3 Ayes - 0 Nayes, Motion Carried <br /> <br />Williams announced that the 20th Annual Town Hall Meeting will be held Saturday, March <br />22, 9:00 a.m. to Noon at the Family Service Center. All resident.'! are invited to attend. <br /> <br />Public Hearin2" - None <br /> <br />Council Business <br /> <br />Finance Director Margaret Egan presented awarding of the sale of municipal improvement <br />bonds. This is the tinal step in securing long term financing for improvement project'! in <br />New Brighton. The total bond package is close to $7 million. <br /> <br />Dave MacGillivray, Springsted and City financial con'!ultant, explained the following bonds <br />to be considered: $320,000 (General Obligation Utility Revenue Bonds); $1,670,000 <br />(General Obligation Improvement Bonds); $1,565,000 (General Obligation Tax Increment <br />Bonds); and $3,435,000 (General Obligation Taxable Tax Increment Bonds). Utility bonds <br />are being issued to fund three projects and will be repaid by water, sewer, and stormsewer <br />user fees. Improvement bonds will fund four project.'! and will be repaid by special <br />assessments, utility user fees, and property taxes. Tax increment bonds will fund public <br />and private redevelopment costs and are repaid by Tax Increment Financing (TIF) from <br />TIP Districts 15, 18, 20, and 25. The interest on tax increment issues are not exempt from <br />Federal and State taxation because they are used tor private development cost.'!. <br /> <br />The $320,000 General Obligation Utility Revenue Bonds received six bids, and the lowest <br />bid came from Norwest Investment Services at a true interest rate of 4.8923%. <br />Springsted's estimate made several weeks ago indicated an interest rate of 4.88%. <br /> <br />The $1,670,000 General Obligation Improvement Bonds received nine bids, and the lowest <br />bid came from Piper Jaffray at a true interest rate of 4.8228%. This bond offering brought <br />out a considerable amount of interest. <br /> <br />The $1,565,000 General Obligation Tax Increment Bonds received five bids, and the lowest <br />bid came from N orwest Investment Services at a true interest rate of 5.1486 % . <br />Springsted's estimate made several weeks ago indicated an interest rate of 5.27 % . <br /> <br />The $3,435,000 General Obligation Taxable Tax Increment Bonds offering reflects those <br />impact.'! relating to nonexempt interest income. This offering received tive bids and the <br />lowest bid came from Cronin and Company at a true interest rate of7.3269%. <br />Springsted's estimate made several weeks ago indicated an interest rate of 7.26%. <br /> <br />The City's A-I credit rating was reaffirmed and noted strong equity, general fund reserves, <br />revenue diversitication, moderate debt, stable socioeconomic, and tax base diversification. <br /> <br />Motion by Larson, seconded by Gunderman, to WAIVE THE READING AND ADOPT <br />THE RESOLUTIONS AWARDING THE SALE OF MUNICIPAL BONDS. <br /> <br />3 Ayes - 0 Nayes, Motion Carried. <br /> <br />Con'!ent A~enda <br /> <br />Town Hall Meeting <br />Report 97-007 <br /> <br />Council Business <br /> <br />Sale of Municipal <br />Improvement Bonds <br />Report 97-008 <br />Resolution 97-004 <br />Resolution 97-005 <br />Resolution 97-006 <br />Resolution 97-007 <br />