CC_Minutes_2008_0728 - Laserfiche WebLink

Home

Regular City Council Meeting Monday, July 28, 2008 Page 4 Klausing moved, Roe seconded, adoption of Resolution No. 10644 entitled, "Resolution Providing for the Competitive Negotiated Sale of $2,550,000 General Obligation Equipment Certificates of Indebtedness, Series 2008A;" scheduled for August 25, 2008, for the purpose of refinancing replacement of the Ice Arena Re- frigeration System. Councilmember Pust questioned staff s rationale for choosing the August 25, 2008 as the sale date. Finance Director Miller advised that staff and counsel needed approximately one month before setting the date, based on proposed bidding time; and that the date chosen also provided available City Council agenda time to bring information back to the City Council. Mr. Miller further noted that construction had already been initiated using temporary monies, but that it was important to recoup those monies through the Certificate sale yet this year for placement on property tax rolls in 2009. Councilmember Pust sought clarification on the additional $50,000 estimated for issuance costs. Finance Director Miller advised that this was to cover legal and issuance costs; as well as underwriter's discounts and premiums, and potential compensation to the winning bidder for their upfront costs. Councilmember Ihlan reiterated, for the record, that the request was for sale of $2.5 million in Equipment Certificates, in addition to $50,000 in issuance costs. Finance Director Miller concurred with Councilmember Ihlan's conclusions. Councilmember Ihlan, also for the record, noted an e-mail that she'd received from a citizen in opposition to this request, Tam McGehee, 77 Mid Oaks Lane, and advised that a copy would be made available to the public and City Council before the end of tonight's meeting. Councilmember Roe spoke in support of the motion, and noted that this option was previously discussed by Councilmembers as a tool to pay for the Ice Arena project; and opined that it appeared that this was the optimum time for the Certifi- cate Sale, questioning if waiting was in the best interest of the City or its taxpay- ers. Councilmember Pust opined that when Councilmembers originally discussed this financing tool, and the impact on taxpayers, it was her intent that this 3.2% in- crease be taken into consideration when discussing the remaining 2009 budget items. Councilmember Pust assured the public and fellow Councilmembers that she would be taking it into consideration.