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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 Lew 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 Adiustable Rate Revenue Bonds (Northwestern College Proiect), 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 />