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10-14-24-WS
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10-14-24-WS
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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—OCTOBER 14, 2024 6 <br /> Councilmember Holden said that in a 15 year period, they are going to want another fire truck <br /> for$1.5 million. Paying off this debt so that the levy pays for fire equipment is a priority. Then <br /> they won't have that extra fee so they can put the other money on the levy. <br /> Mayor Grant wanted confirmation that this council has agreed this fee will go for the building <br /> only. <br /> Councilmember Rousseau said that was her understanding from the beginning. <br /> Councilmember Monson said if we get payment early or we have money before the bonding <br /> that's required, she would expect that to go to the fire station and no other use. <br /> Councilmember Holden said she wasn't worried about another use, she doesn't want to hang on <br /> to money while paying interest. She thinks hanging on to the money because we may be short <br /> later, essentially loses the City money. <br /> Mayor Grant asked if we can use the fee schedule at Xcel to project the amount of money needed <br /> for the 15-year period. Finance Director Yang confirmed. <br /> Mayor Grant said there should be no surprises. Finance Director Yang confirmed. <br /> Councilmember Monson clarified we have a bond and a specific payment for that bond. We are <br /> going to raise franchise fees 10% above that amount for 15-years. If rates drop, we maybe won't <br /> need $395,000. She speculated if it was $375,000 as a requirement on the bond payment, would <br /> we only take an additional 10%over the $375,000 vs. $435,000 or do we have to set the number? <br /> Mayor Grant said we have to set the number. He wants to make sure that we are covered for the <br /> building. He realizes we might create a scenario where there is some extra money. He doesn't <br /> know if we can foresee that scenario, at this point. That may be a discussion for a future council 4 <br /> or 5 years out. <br /> Councilmember Fabel said the bond debt is to the bond holders. Bond holders are entitled to <br /> receive a certain amount of money every year, based under the contract. If there is more revenue <br /> coming in, than is required for those payments, we can't pay off the bond holders early and make <br /> that obligation go away. The debt will be structured in a way that is prescribed in advance. <br /> Mayor Grant said you can call a bond. He thinks this is a callable bond. Finance Director Yang <br /> confirmed. <br /> Mayor Grant said we could pay off the bond holder early. After 10 years, maybe before, you can <br /> refinance. We haven't really talked about that option. A bond holder who knows it can be <br /> refinanced for a shorter period of time might be less likely to buy the bond. So it could be more <br /> costly. Those decisions should be talked through with Ehlers. He agrees that the bond schedule is <br /> what it is. To cut it short, you can refinance but that's the bond holder's schedule. <br /> Mayor Grant said this is a work session to gather information with no final decisions being <br /> made. He thinks he heard three members agree with the $435,000. <br />
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