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City of Centerville <br />Council Meeting Minutes <br />January 13, 2021 <br /> <br />Administrator Statz stated that each year Council has arranged a retreat to discuss Goal Setting, <br />etc. He stated that last year Staff scheduled the session at the City of Hugo in their Oneka Room <br />which would allow for COVID restrictions and that last year it was scheduled from 8:00 a.m. – <br />1:00 p.m. He stated that there was not enough time to cover all items last year but felt that four <br />hours was sufficient to address a meaningful agenda. <br /> <br />Brief discussion took place regarding it would be the second annual Goal Setting Meeting/Retreat <br />for the City, Council Members could provide discussion topics to the Administrator for inclusion <br />on the Agenda, attendees (Commission/Committee Members/Department Heads?) if feasible, and <br />a date of February 6, 2021, <br /> <br />Motion by Council Member Koski, seconded by Council Member Mosher to Schedule a <br />Special Goal Setting Meeting of the City Council for February 6, 2021 Commencing at 8:00 <br />a.m. <br /> <br />Administrator Statz questioned an end time and whether Staff was to order lunch for Members. <br /> <br />Council Member Koski Amended his motion to Start at 8:00 a.m. and End at 1:00 p.m. <br />Council Member Mosher Accepted the Friendly Amendment. A roll-call vote was taken. <br />Mayor Love and Council Members King, Koski, Lakso & Mosher voted in favor. Motion <br />carried. <br /> <br />4. 2013A General Obligation Bond Refunding <br /> <br />Finance Director DeJong stated that he had received a suggestion from Mr. George Eilertson, <br />Financial Advisor, Northland Securities that it was in the best interest of the City to take advantage <br />of an opportunity to refund an outstanding bond issue that could potentially save the City $86,000- <br />$88,000. Finance Director DeJong stated that this goes along with Council’s desire to reduce debt <br />and reduce the bond levy for property owners. He reviewed a graphic that was contained within <br />the Council packet. <br /> <br />Mr. Eilertson expressed is thankfulness to Council for again appointing his firm and consideration <br />of this item this evening. Mr. Eilertson stated that the City has two (2) bonds currently and this <br />refunding would be for the 2013 General Obligation both associated with the 2013 Street Project. <br />He stated that the other bond is a 2016 General Obligation originally issued in 2009 for a street <br />project. He also stated that at the time of issuance of the original 2013A G.O. Bond the City was <br />rated by Standard & Poors of an AA Bond Rating which was fantastic but if looking at a longer <br />period of time and $10,500 for the costs of rating along with the time it takes for the rating along <br />with the interest rates, he recommends the non-rate bond. He stated that if the economy with the <br />vaccine gets more out into the public, interest rates may increase and a trend moving forward and <br />savings depleted and looking at non-rated and the additional fee it is well worth it. He also stated <br />that it can shorten the period of issuance of the bond and in the market for the low interest <br />environment. He stated he was asking for a motion to move ahead due to two (2) benefits to the <br />City as management of the levy on existing bond levies and achieving $14,000-$20,000 levy <br />reduction. Savings of $80,000 to $86,000 net savings. <br />Discussion ensued regarding savings, nonrating, refunding, simple terms refinancing <br />debt/refinancing your home similar, lower interest rate, structure new debt, achieve a savings over <br />Page 6 of 10 <br /> <br /> <br />