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City of <br />Elk - <br />River <br />To <br />City Council <br />Meeting Date <br />May 20, 2024 <br />Item Description <br />Financial Advisor Services <br />Request for Action <br />Item Number <br />8.4 <br />Prepared By <br />Joe Stremcha, Business Services Director/Assistant <br />City Administrator <br />Reviewed by: <br />Lori Stich <br />Joe Stremcha <br />Cal Portner <br />Tina Allard <br />Action Requested <br />Approve by motion, Ehlers, Inc., to provide financial advisory services to the City of Elk River. <br />Background/Discussion <br />The city, Economic Development Authority (EDA), and Elk River Municipal Utilities (ERMU) engaged <br />Springsted in 2013 for financial advisory services. Springsted has since been acquired by Baker Tilly, and over <br />the past few years, two of our appointed advisors have retired and both the city and ERMU have also made <br />some staffing changes. With the personnel changes, staff felt it was a good time to test the market. <br />After inviting proposals for an independent financial advisor, two firms, Baker Tilly and Ehlers, Inc. responded. <br />An interview committee was formed that included the Finance Manager, Economic Development Director, <br />Assistant City Administrator/Business Services Director, City Administrator, ERMU's Finance Manager, and <br />ERMU's General Manager. The committee interviewed both firms on May 13, 2024. <br />The committee unanimously recommends Ehlers for financial advisor services. Baker Tilly will continue with <br />current projects until they are completed. Ehlers will be consulted for new projects as they arise. The <br />committee felt Ehlers would provide a fresh perspective, expertise, and strong customer service. Ehlers <br />provides a full -service approach from fiscal consulting to debt planning and issuance. Ehlers represents cities <br />larger and smaller than Elk River, such as Maple Grove, Lino Lakes, and Duluth. <br />In the last five years, Ehlers has: <br />■ Advised on nearly 2,500 debt issues totaling over $15 billion. <br />■ Ranked #1 in Minnesota for number of competitive bond sales advertised (per Bloomberg data for <br />2023). <br />■ Conducted nearly 100 long-term financial plans and 225 utility rate studies. <br />■ Advised on over 350 housing, redevelopment, and economic development projects. <br />■ Established 200+ TIF districts and completed TIF reporting for over 450 districts. <br />The Elk River Vision <br />A avelcoming community with revolutionary and spirited resourcefulness, exceptional service, and community p p W E H E 0 A T <br />engagement that encourages and inspires prosperityINMUN <br />430 <br />