ORTONVILLE CITY COUNCIL
COUNTY OF BIG STONE, STATE OF MINNESOTA
SPECIAL WORKSHOP MEETING MINUTES
DIALYSYS BUILDING – 315 MADISON AVENUE
MONDAY, AUGUST 20, 2007
6:00 P.M.
CALL TO ORDER
AND ROLL CALL:
Mayor Blair
Johnson called the Special Workshop Meeting of the Ortonville City Council to
order at 6:00 P.M. Roll call was taken with the following Present: Mayor Blair
Johnson, Nick Anderson, John Cunningham, Mike Dorry and Bob Meyer, with the
following Absent: Artie Arndt and Dan Oakes. City Staff present: City
Administrator David Lang. Media Present: None. Others Present: Carolyn Drude and
Shelly Eldridge of Ehlers & Associates Inc.
AGENDA
AMENDMENTS/APPROVAL:
The agenda was
approved by consensus.
DISCUSSION:
CURRENT AND PROJECTED IMPROVEMENT BOND FUNDING OPTIONS – 2008 & BEYOND:
City
Administrator Lang provided an overview of current and prospective bond issues
per the Five Year Plan spreadsheets reviewed at the Capital Program public
hearing last week. It was noted the City Charter includes all enterprise funds,
including Ortonville Area Health Services (OAHS) into a single group with
respect to covering debt payments for bond issues. Drude indicated the current
bond warrants promise to the existing bondholders an earnings coverage of 1.25
times the bond payments.
She stated OHS is
planning a $15,200,000.00 thirty-year term bond issue to fund its proposed
rebuild and expansion project. The City is considering bonded improvement
projects for the water treatment plant that would add approximately $57,000.00
per year in debt payments to the current Water Fund debt payments. In addition,
anticipated sewer rehabilitation projects would add approximately $57,000.00 per
year in debt payments to the current Sewer Fund debt payments. Drude indicated a
projected rate study cost for the Water Fund would be $3,000.00 and for the
Sewer Fund an additional $3,000.00. She suggested the acquisition of an
Excel-based Capital Improvement Planning Workbook at a cost of $3,000.00 to
$4,000.00. Drude also recommended consideration of establishing a Storm Water
Utility fee.
With respect to
some of the technicalities of bond issues, Drude noted Minnesota law limits the
annual dollar amount of “bank qualified” bonds to $10 million. One possibility
would be to split the OAHS bonding needs into two components. The first half of
approximately $7.5 million could be issued in 2007, with the second half being
issued in 2008. Another option may be to issue the first half in 2008, and the
second half in 2009.
Ortonville City
Council Special Meeting Minutes August 20, 2007 Page 2
of 2
DISCUSSION:
CURRENT AND PROJECTED IMPROVEMENT BOND FUNDING OPTIONS – 2008 & BEYOND: (cont.)
With respect to
bond issues for improvements such as a fire station or city hall, Drude noted
these are subject a reverse referendum. She indicated the most common option is
a lease/purchase financing, with the Economic Development Authority (EDA)
issuing revenue bonds, and the City making lease payments to the EDA to cover
principal and interest on the bond issue.
ADJOURNMENT:
Mayor Blair
Johnson adjourned the meeting by consensus at 7:00 PM.
APPROVED: ATTEST:
______________________
_________________________
Blair
Johnson David A. Lang
Mayor
Clerk-Administrator
