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<br />Memo <br /> <br />Date: December 13, 2004 <br />To: Mayor, City Council & Staff <br />Rom: John W. Meyer Finance Director <br /> <br />Police Building (Old Business) <br /> <br />Following council direction, I met with Jim Keinath (City of Circle Pines <br />Administrator) and discussed the lease buyout and the bond sale for the new <br />police station. When the new facility is completed, the City Of Centerville will <br />have five years remaining on a lease at an escalating rate. The payment of <br />$16,975 now is significantly lower than the present value of our lease payments <br />and the cost to renovate the space for other use. I recommend that, in 2005, <br />payment of the $16,975 buyout to the City of Circle Pines. <br /> <br />Regarding the bond sale for the police station, the City of Circle Pines is using a <br />new law that provides for the sale of bonds for capital improvement plan <br />activities. To use this method, all parties involved in paying for the new facility <br />will need to hold a public hearing. The use of this law could save nearly 1 % <br />interest on the bond because the issue is considered general obligation <br />improvement versus general obligation revenue. I recommend the city schedule <br />and conduct the hearing allowing for this financing method. <br />