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Regular City Council Meeting Monday, June 9, 2008 Page 14 the City chose not to undertake a portion of the project, it would make more sense to issue two separate bond issues, given the immediate needs and those antici- pated in 2013. Mr. Miller clarified that, if all of the dollars issued were not needed, it was typical that the excess be used to pay off the debt service earlier, and not given back to the lender. John Kysylyczyn, 3083 N Victoria Street Mr. Kysylyczyn questioned if equipment certificates were paid back on market value of property or net property calculations. Mr. Miller responded that they would be based on net tax capacity; noting that impacts to business and homeowners were different, and reiterated staff's recom- mendation for an equipment certificate issue rather than a GO bond. Mr. Kysylyczyn questioned current interest rates for borrowing money versus any loss in interest if the City were to use internal monies to fund the project. Mr. Miller advised that, based on the current interest environment and current bond ratings at 4.25%, the City's investment portfolio was earning in excess of 5% in interest. Tam McGehee, 77 Mid Oaks Lane Ms. McGehee offered her support of the comments of Mr. Sands and those of City Manager Malinen; opining her support of geothermal energy. Ms. McGehee noted her previous request, during construction of Public Works building and City Hall renovation, that geothermal systems be considered. Ms. McGehee spoke in support of bonding for a sufficient amount to do the arena project now and for re- placement of existing units with geothermal units as needed to ensure that the best possible system is in place; however, spoke in support of GO bonds with voter approval, rather than attempting to "slip it under the radar screen." City Manager Malinen noted that one of the major concerns in staff's recommen- dation not to wait was the condition of the current system potentially beyond its useful life; and that the minimal cost for the additional borings to support future expansion was incidental. Mr. Malinen noted the cost to the City and its user groups if the current system were to fail and the skating center had to be closed for lengthy repairs, at which time repair of that current system, with the Freon, would cause further long-term costs. Mr. Malinen clarified that the recommended financing plan was to recognize all those factors, to keep the arena going, while asking the City Council to make a decision for additional borings at the same time to serve the existing arena and make it better, and for the potential to move for- • ward in 2013 with another campus conversion.