Laserfiche WebLink
EN HILLS <br /> MEMORANDUM <br /> DATE: August 09, 2011 <br /> TO: Financial Planning and Analysis Committee <br /> FROM: Sue Iverson, Director of Finance and Administrative Services <br /> Kyle Howard, Finance Analyst <br /> SUBJECT: Meeting agenda <br /> • Discussion on Changing the Conduit Debt Fee <br /> In December, 2010 Presbyterian Homes wanted to use Conduit Debt to finance their project. The issue <br /> arose where the cities current Conduit Debt Fee was not suited to fully deal with such a large issuance of <br /> Conduit Debt, $34,000,000. The city's current policy is that 1/8th of 1% of the outstanding principal <br /> balance of the bonds is collected to cover the annual administrative fee. The administrative fee may be <br /> paid in a lump sum at closing on the bonds, or may be paid semiannually while the bonds are outstanding <br /> at the times specified in the bond documents. <br /> The Council has requested that the Financial Planning and Analysis Committee review the current <br /> Conduit Debt Fee.They have recommended that it be modeled after the City of Blaine policy. Blaine has <br /> a tiered system that allows for different allocation percentages based on the total dollar value of the <br /> issuance and different types. Blaine's method of allocation was used by the City to handle the <br /> Presbyterian Homes Conduit Debt Fee. The Council would like the current fee calculation method to be <br /> reviewed by the committee and a new method recommended for adoption. <br /> Supplemental items in packet <br /> City of Blaine Conduit Debt Policy <br /> Conduit Financing Fee of Surrounding Communities <br /> City of Arden Hills Procedure for Private Activity Revenue Bond Financing <br /> • <br />