HomeMy WebLinkAbout0924 SpecialSPECIAL COUNCIL MEETING MINUTES
September 24, 2001
CALL TO ORDER: Mayor Mader called the meeting to order. Present were Mayor Mader,
Councilmembers Petersen, Ericson and Zieska, City Manager Boyles and Finance Director Teschner.
Councilmember Gundlach was absent.
SPECIAL BUSINESS:
Consider Approval of a Resolution Authorizing the Issuance of $1,035,000 General Obligation
Improvement Bonds of 2001.
STEVE MATTSON (Juran & Moody): Discussed the bond sale in connection with the staff report noting the
issuance is a standard 10-year deal at an average coupon of 3.8193% with a net effective rate of
4.1561%, which are the lowest interest rates the City has gotten on any bond issue in his 29 years.
Advised that the "A" rating is not in hand from Moody's due to the tragedy at the World Trade Center and
that the bond issue will close in 30 days rather than 10 days. Thera is no concern, however, about the
rating. Also discussed the cash flow with respect to debt service.
TESCHNER: Advised that in January each year a debt analysis is conducted. The $58,000 tax levy is not
fixed for the next 10 year period. It is projected that way right now and is adjusted each year.
MADER: Added that it is not extra money. It's extra because we reserve for it and will have over reserved.
MATTSON: Confirmed.
BOYLES: Asked if there were other refunding possibilities. Also asked for clarification as to the
redemption language within the resolution.
MATTSON: Noted that it could be reviewed, but believed the City had refunded just about everything
possible. With respect to the redemption language, it was more beneficial to do the issue without the call
feature since the likelihood of achieving a lower rate that this was Iow.
ZIESKA: Noted a minor change in the resolution regarding the location of the meeting. Also advised that
staff should be aware that the residents may ask at the assessment hearing why the bonds are sold at
one rate, and the assessment is at another. There may be an explanation required regarding the cost of
money.
MOTION BY ERICSON, SECOND BY PETERSEN TO APPROVE RESOLUTION 01-111
AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION REFUNDING BONDS OF 2001 AS
AMENDED.
VOTE: Ayes by Mader, Petersen, Ericson and Zieska, the motion carried.
The Council took a brief recess in order to sign documents.
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
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Consider Approval of a Resolution Amending Resolution 01-103 Certifying Proposed 2002 City of
Prior Lake Property Tax Levy to Scott County Department of Taxation.
MADER: Advised that there is some question as to whether the preliminary levy can be adjusted upwards,
downwards or both. In the past, the levy has only been adjustable downwards.
TESCHNER: Reviewed the agenda item in connection with the staff report, noting that this action would set
the maximum levy limit while allowing the most flexibility when the final levy is set.
BOYLES: By increasing the preliminary proposed tax levy by $26,000, the City is able to invest potentially
$100,000 in a street overlay project, rather than $50,000 presently budgeted. The infrastructure seems
an appropriate allocation for the funds, subject to a final levy adoption.
MADER: Explained that this action overall would mean an increase in the homeowner's tax bill in 2002 by
$4.53 and bring the percentage to 6.87%, every dollar of which is the replacement of state aid funds, and
would also be on the heels of a 10% reduction in the City's tax bill from last year. Advised that most
communities will experience significant increases, and for example, Shakopee's levy increase will be
approximately 56%.
BOYLES: Clarified that his understanding was that when the legislature contemplated revising the taxing
structure, they knew the impact on the cities.
ZIESKA: Commented that his recollection is that $50,000 provides about ½ mile of overlay. Believes
adding $50,000 to the fund for an overlay program is a good start.
MADER: Also noted that instituting an overlay program eats up much less staff engineering time than full-
scale reconstruction.
MOTION BY ZIESKA, SECOND BY PETERSEN TO APPROVE RESOLUTION 01-112 AMENDING
RESOLUTION 01-111 CERTIFYING PROPOSED 2002 CITY OF PRIOR LAKE PROPERTY TAX LEVY
TO SCOTT COUNTY DEPARTMENT OF TAXATION.
VOTE: Ayes by Mader, Petersen, Ericson and Zieska, the motion carried.
A motion to adjourn was made and seconded. The meeting adjourned at 5:27
Frank Boyles, City Mahager
Kelly Mey'e?, R~c~ing Secretary