HomeMy WebLinkAbout021605 Special16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
SPECIAL COUNCIL MEETING MINUTES
February 16, 2005
CALL TO ORDER:
Mayor Haugen called the meeting to order at 5:03 p.m. Present were Mayor Haugen, Councilmembers Fleming, Petersen,
Zieska and LeMair, City Manager Boyles, Finance Director Teschner, and Steve Mattson of Northland Securities.
Mattson: Originally the bond funding was scheduled to be eight million dollars. Ended up selling only 7.57 million at a
higher interest rate, which increased the coupon value. Investors are better off owning a bond with higher coupons. We
were able to get the present value up from $371,800 to $393,900. The savings to the City was projected at $462,000 and
actually came out as $492,000. People who bought these bonds are committed to buy at 9/1/05.
Teschner: We believe this is the market Iow, but there is no guarantee. That is the risk we take.
Mattson: Virtually all bonds are sold. Most buyers are insurance companies, corporate and industrial buyers. Only a few
individuals.
Mattson distributed a resolution prepared by Briggs and Morgan for Council action.
MOTION BY PETERSEN, SECOND BY ZIESKA TO APPROVE RESOLUTION 05-34, A RESOLUTION PROVIDING FOR
THE ISSUANCE AND SALE OF $7,570,000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 2005A, PLEDGING
FOR THE SECURITY THEREOF WATER AND SEWER SYSTEM NET REVENUES AND LEVYING A TAX FOR THE
PAYMENT THEREOF.
Fleming: Sought clarification of what it means to pledge security of sewer and water revenues.
Mattson: Park and Library bonds are the biggest portion of this issue and that is paid back by tax levy. Second biggest is
the bond issue for brick and mortar of the maintenance facility. Water revenues are pledged against it.
Teschner: Identified that ultimately both are full faith and credit. They are General Obligation vs. sewer and water revenue
bonds. The proceeds of the sale are invested between September and December, and then all bonds will be called.
VOTE: Ayes by Fleming, LeMair, Petersen, Zieska and Haugen.
Motion to adjourn was made by LeMair and seconded by Fleming. The meeting adjourned at 5:14 p.m.
Recorded by,
Frank Boyle
www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447.4245