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ARDEN HILLS CITY COUNCIL WORK SESSION — SEPTEMBER 12, 2011 5 <br />MOTION: Councilmember Holden moved and Councilmember Tamble seconded a <br />motion to approve Resolution 2011 -045 Setting the Preliminary Levy for <br />Taxes Payable in 2012 in the Amount of $3,132,264. Motion carried <br />unanimously (5 -0). <br />Council discussed options for the Truth -in- Taxation hearing. <br />MOTION: Councilmember Holden moved and Councilmember Werner seconded a <br />motion to set the Truth -in- Taxation Hearing Date for December 5, 2011, at <br />7:00 p.m. Motion carried (4 -1) Tamble -Nay. <br />B. Northwestern College Conduit Debt Interest Rate Mode Change <br />Director of Finance and Administrative Services Iverson explained that in November 2010, <br />the City issued bonds for the benefit of Northwestern College to finance a portion of the costs of <br />constructing and equipping the student center. The bonds were originally issued in a short -term <br />fixed interest rate mode and privately placed with M &I Marshall & Ilsley Bank. The project has <br />been completed and Northwestern College would like to convert the interest rate on the bonds to a <br />variable rate of interest that resets on a weekly basis. For tax purposes, this will cause a refunding <br />of the current bond issue and a re- issuance of the bonds, but it will not affect the City's ability to <br />issue debt in this calendar year nor will it have any effect on the Presbyterian Homes conduit debt <br />issue. The Council is asked to approve the interest rate mode change and the reoffering of the <br />bonds to the public. <br />Director of Finance and Administrative Services Iverson stated that the City's bond counsel, <br />Julie Eddington of Kennedy & Graven, and Doug Schroeder of Northwestern College, are present <br />to answer any Council questions. <br />Mayor Grant commented that this will result in no cost to the City and no City liability. He then <br />asked Ms. Eddington what the current bond interest rate is. <br />Julie Eddington, Kennedy & Graven, explained that bond rates are variable and reset weekly <br />but she believes the current rate is 1.5% to 2 %. <br />MOTION: Councilmember Holden moved and Councilmember Tamble seconded a <br />motion to Approve Resolution 2011 -044 Approving the Conversion of the <br />City's Adjustable Rate Revenue Bonds (Northwestern College Project), Series <br />2010, to a Variable Rate Mode; and Approving and Authorizing the <br />Execution and Delivery of Documents Related Thereto. Motion carried <br />unanimously (5 -0). <br />8. UNFINISHED BUSINESS <br />None <br />9. COUNCIL COMMENTS <br />