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ARDEN HILLS CITY COUNCIL—MAY 8, 2023 6 8. PULLED CONSENT ITEMS A. Motion To Approve Resolution 2023-022 Relating To Approval Of Amendment To The City's Series 2015 Note, Series 2011A Note And Series 2012A Note (Presbyterian Homes Of Arden Hills, Inc.) Finance Director Bauman explained the City previously issued certain conduit revenue obligations which need to be modified due to the phase out of LIBOR (used in determining the interest rate). The City's Bond Counsel has determined that the Amendments will not be considered a significant modification of the Notes and will not result in a reissuance. Staff commented further on the request and recommended adoption of a Resolution relating to Approval of the Amendment for the Notes. Mayor Grant explained LIBOR was the London Inter Bank Offer Rate which was an interest rate that was tied to the debt instruments. He reported it was his understanding LIBOR was going away. He indicated this was a housekeeping matter that needed City approval. Councilmember Fabel stated he asked to remove this item from the Consent Agenda for curiosity reasons. He explained this seems to have been a significant commitment the City made back in 2011. He indicated he was not familiar with pass-through financing and was curious with how this worked. Mayor Grant reported the City of Arden Hills and other communities have a bank qualified amount of conduit financing they can issue each year. He reported the conduit debt under consideration was issued to Presbyterian Homes to assist with their expansion. He stated the City can issue $10 million per year in conduit debt and the City receives a fee for the issuance. He noted this type of financing was still available. Finance Director Bauman stated the City currently has five or six conduit debt revenue notes outstanding. She indicated she has not been approached for a request since she has been with the City of Arden Hills, which is five years. She reported each city is allowed to issue $10 million per year in conduit debt. Councilmember Holden explained this financing was not held by the City, but rather the City simply allowed Presbyterian Homes to use the City's credit rating through this conduit debt. MOTION: Councilmember Monson moved and Councilmember Holden seconded a motion to Approve Resolution 2023-022 Relating To Approval Of Amendment To The City's Series 2015 Note, Series 2011A Note And Series 2012A Note (Presbyterian Homes Of Arden Hills, Inc.). The motion carried (5-0). 9. PUBLIC HEARINGS None.