2007-07-19 Workshop PacketAlbcrtvillc
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ALBERTVILLE CITY COUNCIL
WORKSHOP AGENDA
July 19, 2005
6:30 PM
1. 1-94
a. Introductions by Larry Kruse
b. Project Review S.E.H. Engineer Jamison Sloboden
c. MNDOT Comments followed by questions
d. BMI Jon Huseby Comments
e. Paul Donna, Northland Securities -Financing Discussion
f. City Attorney Mike Couri on funding option from a legal perspective
g. Review of moratorium
h. Recommended actions?
2. City Hall Financing
0 3. Waste Water Treatment Financing
4. Arena Financing
5. Fire Truck Financing
6. Prairie Run Financing
7. Other
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1
' Council Workshop, July 19, 2005,1-94, Capital Financing Workshop Sign-up List
Name Representing City e-mail Address/Phone Numt
CAS.
PJ
•
C
7/19/2005
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• What factors should be considered in
choosing a capital financing method?
— Three guiding principals:
• Equity
• Effectiveness
• Efficient
7/192005 No&dmd Secmitiea Public Fiaence 3
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❖Developing and Evaluating a Finance Strategy
❖Debt Financing Considerations:
— City Hall
— Water Treatment
— I-94 Interchange
— Capital Equipment Needs
7/192005 Nm Ward S—iti. Public Finance 2
Northland Securities Public Finane 1
7/19/2oas
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B. General Obligation CIP Bonds
• Restricted to City Halls, Public Safety Facilities,
Public Works Facilities and Libraries.
• "Reverse Referendum" Process
Capital Improvement Plan
Public Hearing / 30 day petition period
Unanimous vote of council
• Counts Against City's Debt Limit
• Maximum Annual P&I Limits
General Obligation Pledge — debt service levy
7/192005 NortW.W Seoaities Public Fioenre
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0
Northland Securities Public Finane 2
7/19/2005
•
C. Lease Revenue Bonds
• No Referendum Required
• Counts Against City's Debt Limit - if project is
greater than $ LOM
• Annual Appropriation vs G.O. Pledge
• Property Tax Supported — general fund levy
• Higher Interest Cost (.05% - .15% for essential
assets)
• Levy Spread Against Net Tax Capacity
7/192005 N« hla d sxuitics Public Fi- 9
10
10
Considerations
✓ Politics
✓ Cost
✓ Who benefits / term
✓ Future projects / mix of debt & cash
✓ Net tax capacity vs market value
7/192005 Northland securities Public Fi=w 10
Northland Securities Public Finane 3
7/19/2005
10
Northland Securities Public Finane 4
0
7/19/2005
,7
C. Lease Revenue Bonds
• No Referendum Required
• Counts Against City's Debt Limit - if project is Beater
than $1.OM
• Annual Appropriation vs G.O. Pledge
• Property Tax Supported — general fund levy
• Higher Interest Costs (.05% - .15% for essential
assets)
• Levy Spread Against Net Tax Capacity
7/192005 NorOdmd Securilim Pubic Finmice 18
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11
Northland Securities Public Finane 5
S
7/19/2005
9
B. General Obligation Improvement
Bonds
• No Referendum Required
• Does Not Count Against Debt Limit
• General Obligation & Assessment Pledge
✓ assessments required to cover 20% of cost
✓ Any other available funds
7/192005 Northland Sawitim Public Finance
10
I
4 C1
C. General Obligation Street
Reconstruction Bonds
• Reverse Referendum Process Required:
• 5 year Sued plan
• public hearing / 30 day petition period / 5 % threshold
• unanimous vote of council to issue the debt No referendum required
• Counts Against Debt Limit
• General Obligation Pledge — debt service levy
7/192005 NodWard Securities Public Finanm 22
Current Interest Rates
rer�
Tr to 10 1 i 20
C iencral Obli•_.10on RoixLi LA^l 3.50n.o 3.8M0 4.10°o
C1
.case ReNenu€13<xKh(A3) 3.60P:b
-rl'easur, Sccurilie5 4-1",» 4.•t3°4t 4.50%
7/192005 Northland Securities Public Finmwe 24
Northland Securities Public Finane 6