HomeMy WebLinkAbout043097 SpecialEmergency City Council Meeting Minutes
Date: April 30, 1997
Call to Order: Mayor Andren called the meeting to order at 5:33 p.m. Present
were: Mayor Andren, Councilmembers Greenfield and Schenck.
Mayor Andren announced that the purpose of the meeting was to approve the
sale of 7.8 million dollars of General Obhgation Bonds.
City Manager Boyles indicated that an Emergency Meeting was necessary to
"catch the market" at just the right time so that the proper savings could be
reahzed by the City and taxpayers for this 20 year issue. He introduced Steve
Mattson of Juran and Moody.
Steve Mattson distributed materials to the City Council, including a financial
analysis of the bond issue, a comparison of the interest rates with the Cities of
Montevideo and Fridley who are also in the market during the same period and
an extract of minutes and resolution which Would approve a privately negotiated
sale. Mr. Mattson advised that no municipality was selling bonds during the
remainder of the week which was in Prior Lake's favor. He compared the bond
interest rate received by the City to Fridley and Montevideo. Fridley is a AA1
rated community by Moody's, whereas Montevideo chose to insure their rating to
give them AAA status. Prior Lake is an A-1 Community. Mr. Mattson
announced that all but $1 million of the bonds have been sold to date subject to
the City Council's approval at this meeting. The average coupon rate for the
sale was 5.696% with an estimated effective rate of 5.805%. Mr. Mattson
explained the change in Moody's rating system. He indicated that the City's
rating is based upon Moody's evaluation of the City's fund balances, budget, debt
loads, and other financial statements.
Finance Director Teschner indicated that the City has made a concerted effort to
improve its Moody's ratings by establishing fund balances. The City has also
shortened the debt repayment period as well as monitored the amount of
outstanding debt.
He stated that the City's debt load is relatively modest at $14 million before this
issue. Including this issue, debt load will be approximately $22 million, of which
$2.1 million will come off and $1 million added this year to finance 1997 capital
improvement projects..
· Councilmember Kedrowski joined the meeting at 5:45 p.m.
MOTION BY SCHENCK SECONDED BY GREENFIELD TO APPROVE
RESOLUTION 97- 32 PROVIDING FOR THE ISSUANCE OF $7,800,000
GENERAL OBLIGATION PARK BONDS OF 1997.
16200 E~~a~Sfl~l~(Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
Upon a vote taken, ayes by Andren, Greenfield, Kedrowski, and Schenck, the
motion carried. ~?
The ~General Consent at 5:46 p.m.
City Mana~ I
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