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City Council Minutes Page 2 <br />October 15, 2007 <br />• 5. ]DINT MEETING WITH ECONOMIC DEVELOPMENT AUTHORITY <br />Pursuant to due call and notice thereof, the meeting of the Elk River Economic <br />Development Authority was called to order at 6:35 p.m. by Chair Gongoll. <br />5.1. YMCA Bond Sale. Public Hearin~City Council Action <br />Ms. Johnson briefly went through tonight's actions to issue the bonds for the YMCA <br />project and stated the Council needed to hold a public hearing to designate the bonds for <br />the YMCA project as 501(c)(3). <br />Mark Ruff, Ehlers and Associates-Stated the purpose of the public hearing is to authorize <br />up to $12;000,000 in bonds for the YMCA and give citizens an opportunity to voice whether <br />they like the idea of the city issuing bonds for anon-profit. <br />Mr. Ruff stated the city bond rating was upgraded to Aa3 and noted this bond rating is <br />similar to ratings of larger cities such as St: Cloud. He gave credit to staff and the Council <br />for management of city funds. He read and presented a plaque to the Mayor. <br />Mr. Ruff discussed the bond sale and noted that the rate came in better than expected at <br />4.17 percent. <br />Mayor Klinzing gave credit to Ms. Johnson, Mr. Simon, and the Finance Department staff <br />for doing a great job with the city's finances. <br />Mayor Klinzing opened the public hearing. There being no one to speak to this issue, Mayor <br />Klinzing closed. the public hearing. <br />5.3.A. Ordinance Authorizing the Issuance of Not to Exceed $12,000000 General Obligation <br />Bonds by the Economic Development Authority for the Citv of Elk River-City Council <br />Action <br />Councilmember Gumphrey questioned how the Sherburne County Grant will affect these <br />bonds. <br />Ms. Johnson stated the county would be giving $1.4 million for this project, which will <br />reduce the city's tax levy for this project for six years. <br />MOVED BY COUNCILMEMBER FARBER AND SECONDED BY <br />COUNCILMEMBER ZERWAS TO ADOPT ORDINANCE 07-13 <br />AUTHORIZING ISSUANCE OF NOT TO EXCEED $12,000,000 GENERAL <br />OBLIGATION BONDS BY THE ECONOMIC DEVELOPMENT AUTHORITY <br />FOR THE CITY OF ELK RIVER, MINNESOTA; PROVIDING FOR THE <br />FORM AND DETAILS THEREOF; AND AUTHORIZING THE ECONOMIC <br />DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER, <br />MINNESOTA, TO PLEDGE THE FULL FAITH, CREDIT AND RESOURCES <br />OF THE CITY OF ELK RIVER, MINNESOTA, FOR THE SECURITY AND <br />PAYMENT OF THE BONDS. MOTION CARRIED 5-0. <br />• <br />