2005-11-30 CC Minutes Workshop
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ALBERTVILLE CITY COUNCIL
November 30, 2005
Albertville City Hall
6:10 PM
PRESENT: Mayor Don Peterson, Council members John Vetsch, LeRoy Berning, Ron
Klecker, and Tom Fay, Finance Director Tina Lannes, City Administrator Larry Kruse and
Financial Consultant Paul Donna.
Mayor Peterson called the Albertville City Council meeting to order at 6: I 0 p.m. followed by the
Pledge of Allegiance.
The purpose of the special meeting was to issue $3.7 million in Lease Revenue Bonds for a new
City Hall and to issue a $4 million Series 2005A General Obligation Sewer Bond for the new
Wastewater Treatment Plant expansion.
. $4,000,000 WASTEWATER TREATMENT BOND ISSUE
Paul Donna of Northland Securities presented the results of the $4,000,000 bond sale stating the
General Obligation issue had a 10 year call, 20 year term and was rated by Moody's at an A2,
but the issues has insurance bringing the issue up to the highest AAA rating. The average
interest rate of3.98% and an annual debt service payment of $293,000. Donna explained that the
EDA is borrowing the funds to build the City Hall and then the building and land is leased back
to the City who makes the payment on the bonds.
MOTION BY Council member Klecker, seconded by Council member Berning to adopt
Resolution No. 2005-58 entitled (A Resolution Awarding the Sale of $4,000,000 General
Obligation Sewer Revenue Bonds, Series 2005A; Fixing Their Form and Specifications;
Directing Their Execution and Delivery; and Providing for Their Payment). Motion carried
unanimously.
$3,700,000 CITY HALL LEASE REVENUE BOND
Paul Donna of Northland Securities presented the results ofthe $3,700,000 bond sale stating the
issue had a 9-year call, 20-year term and was rated by Moody at an A-3. The bond is being
issued to the Albertville Economic Development Authority (EDA) and the City then has a land
and building lease with the EDA. Donna stated the average annual payment is $279,000 and the
average interest rate is a 4.34%.
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M:\Public Data\City Council\Council Minutes\2005 Minutes\M 11-30-05 FinaLdoc
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City of Albertville
City Council Minutes
November 30, 2005
Page 2 of2
Motion by Council member Berning, seconded by Council member Klecker to approve
Resolution No. 2005-59 entitled (A Resolution Awarding the Sale Of$3,700,000 Public Project
Lease Revenue Bonds, Series 2005B; Fixing Their Form and Specifications; Directing Their
Execution and Delivery; and Providing for Their Payment). Motion carried unanimously.
ADJOURNMENT
MOTION BY Council member Klecker, seconded by Council member Vetsch to adjourn the
meeting at 6:20 p.m. Motion carried unanimously.
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Don Peterson, Mayor
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M:\Public Data\City Council\Council Minutes\2005 Minutes\M 11-30-05 FinaLdoc