1992 Rec./Disb./Res. & Minutes - Laserfiche WebLink

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City Council Meeting Minutes September 9, 1992 page four lease purchase financing of the Centerville City Hall/Fire Hall. She advised that the bid from Norwest Investment Services in Minneapolis at 6.28% appears to be the low bid. Robert Soibech, 1862 Prairie Drive, expressed concern and confusion as how the City Council would make payments on the lease purchase financing and the significance of $430,000.00 being available within the general fund for such an expenditure. Council member Burgstahler explained that general funds are available for payment of the municipal building and the City Council has a choice on how and when to finance the project. He noted that it is question of how much the City would like to take out of savings versus paying over time. He advised that it appeared to be the consensus of the City Council that it would be more prudent to finance the building over time versus paying cash. He noted that nobody ever knows what's around the corner. He noted that 6.28% is a very favorable interest rate for borrowing. He also noted that the City is never sure on what they will earn on a cash balance over time. Council member Burgstahler further advised that it was his opinion that City taxes would not increase over what citizens are paying today to finance the municipal building. He advised that the City has no extra levys in the budget to make the building payment. He also noted that in ten years the City would have additional revenue from the elimination of the current Tax Increment Financing Districts. Mayor Buckbee also noted that the City Council spent quite a bit of time considering the financing of the building and he reiterated that it made the most sense for cash flow to go with a lease purchase arrangement. The Clerk/Administrator pointed out to Mr. Soibech that a budget to set the maximum 1993 levy to be certified to Anoka County will be held tomorrow evening September 10, 1992 at the Centerville City Hall at 6:00 p.m. She invited him to attend the meeting. Motion by Burgstahler, second by Buckbee to award the $500,000.00 lease purchase financing bid to Norwest Investment Service in Minneapolis at 6.28% per the recommendation of the Municipal Financial Advisor and contingent upon review by the City Attorney; appropriate City Officials are authorized to enter into an agreement for said lease purchase, as per the attached resolution, if the a~f@@m@fi~ m@@~~ tn@ a~~r@val of the City Attorney, motion oarried unanimously.