07-22-1985 CC MIN - Laserfiche WebLink

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City Council Minutes July 22, 1985 Page Three COUNCILMEMBER SCHULDT MOVED TO APPROVE RESOLUTION 85-30 A RESOLUTION APPROVING THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO.2, ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO.2, AND DIRECTING CITY STAFF TO IMPLEMENT TAX INCREMENT FINANCING DISTRICT NO.2. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED 3-0. MAYOR HINKLE MOVED TO APPROVE RESOLUTION 85-31 A RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF $130,000 GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 1985B. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED 3-0. 8. Consideration of Resolution Auth@rizing The Issuance Of Refunding Improvement Bonds Mr. Ron Langness of Springsted, Inc., reviewed the refunding issue with the Council and explained that it is a tremendously complicated resolution to draft and would take several hours to complete. Therefore, he stated, if the Council wants to adopt the Resolution he would then finalize it. He explained the resolution incorporates five existing issues and one new issue into one refunding issue. He reviewed his report No. 2986 prepared for the Council which discussed recom- mendations for the issuance of $2,640,000.00 general obligation refunding .. improvement bonds, series 1985B. He explained the current issues are approximately at 10.7% and that the estimated refunding interest rate would be approximately 8.06%. He then reviewed Exhibit No. 1 in the report which showed a comparison of the refunding program showing the existing debt and the assessment income based on the last audit, including deferred assessments. He referred Counci1members to Column #5 which showed the debt service and refin- ancing of the balloon payments. He explained the net affect of the refunding issue would be a reduction in debt service of approximately $310,000.00 and would accomp1ish'a reduced interest rate, reduced debt service payments, and spread out the balloon payments. Mr. Langness then reviewed the advanced refunding process for the City Counci1members and noted that essentially advanced refunding is the replacement of outstanding obligations with new, lower interest rate obligations. He also noted that Minnesota law makes it difficult to refund an issue more than once and that the federal tax bill, if passed, will eliminate advanced refunding completely. COUNCILMEMBER SCHULDT MOVED TO APPROVE RESOLUTION 85-32 A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $2,640.,000 GENERAL OBLIGATION REFUNDING AND IMPROVING BONDS, SERIES 1985~. COUNCILMEMBER WILLIAMS SECONDED THE MOTION. THE MOTION PASSED. 3-0. 9. Administrator's Update: A. Simonet Drive Informational Meeting The City Administrator noted that the original date scheduled for holding the Simonet Drive Informational Meeting was July 29, however, he requested additional time to allow staff to prepare for the meeting. Mr. Bublitz noted that he would attempt to schedule the meeting for the first week in August and notify Counci1members regarding the date and time. B. Transient Merchant Ordinance Counci1member Schuldt commented that the Council, during this past June's