HomeMy WebLinkAbout2002 [07] Jul 25
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July 25, 2002
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Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in special sessioh
on Thursday, July 25, 2002 at 3:00 PM in the st. Joseph City Hall, I
Members Present: Mayor Larry Hosch. Councilors Bob Loso and Kyle Schneidér. AdministratorlClerk
Judy Weyrens. Members Absent:· Cory Ehlert, AI Rassier,
Others Present: Monte Eastvold.
2002 General Obliaation Improvement Bonds: Monte Eastvold of Juran and Moody presented the
Council with the bid results for the public bond sale of the 2002 General Obligation Bonds, They are as
follows: I
UBSIPAINEWEBBER
US BANK CORP
3.9121 Net Interest Cost
3.9317 Net Interest Cost
Eastvold stated the bond issue was rated and the City received a BAA rating, the same as in the past. 'In
discussing the matter with the underwriter, the City's bond rating remained the same due to the level of
debt for a City the size of St. Joseph. While the City of St. Joseph has a 12% debt rate, that is not '
uncommon for a growing community, The majority of debt is tied to special assessments and will be paid
off in a relatively short period. .
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Eastvold further stated that the 2002 GO Improvement Bonds qualified for insurance, with the premium
paid by the successful bidder. Eastvold stated that the rates quoted reflect that ,of a bond issue that is I
AAA rated, which is a result of the insurance, '
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Loso questioned Eastvold if the low interest rate would result in a reduction of interest for those properties
being assessed. Eastvold responded that is a policy decision that must be made by the City, Typically
the interest rate charged assessments is 1 Y. percent to 2 percent above the net effective rate. The
projected levy schedule would need to be adjusted if the interest rates on the assessments are reduced
beyond 2 percent. i I
Loso made a motion accepting Resolution 2002-_ proposal on the competitive negotiated sale
of $ 4,700,000 General Obligation Improvement Bonds of 2002; providing for insurance; and 1
pledging special assessments for the security thereof. The motion was seconded by Schneider
and passed unanimously by those present. I
Debt Manaaement Study: Monte Eastvold presented the Council with an updated Debt Management I
Study, The study evaluations the financial conditions of each bond issued by the City of St. Joseph, i
Eastvold stated that three bond issues project a negative cash flow at completion. Those three issues
are the East Baker Street Improvement, 2000 EDA Public Revenue Bonds and the Northland Plat Five
improvements, Eastvold stated that the East Baker Street Bond Issue for the past years has shown al
negative fund balance at maturity ,and the Council will need to transfer funds at the time of closing. The
2000 EDA Public Revenue Bonds have a negative cash flow due to additional expenditures for the City
Hall facility, Weyrens clarified that the City Council was aware that the expenditures of the new City I
facility would exceed the bond proceeds, and agreed to use a portion of the proceeds from the sale of the
property located at 21 - 1 st Avenue NW to offset those costs, The last bond issue, Northland Five, has
been guaranteed by the developer and any shortfall will be reimbursed to the City as per the development
agreement executed with the final plat. i
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EI Paso Outdoor Liauor Reauest: Weyrens reported that Carol Tamm of the EI Paso inadvertently folgot
to make application for an outdoor liquor permit for an event to be held on Sunday, July 28, 2002. 1
Weyrens stated the Ordinance requires outdoor liquor permits to be approved by the City Council 30 pays
prior to the event. Schneider made a motion to approve the outdoor liquor request of the EL Paso
for an event to be held on July 28, 2002. Approval is contingent upon the license holder meeting
the requirements of the Police Chief. The motion was seconded by Loso and passed unanimously
by those present,
July 25, 2002
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Vacation Carrv Over: Weyrens stated that in December of 2002 the City Council authorized Weyrens to
carry forward her unused vacation until July 1,2002, Weyrens stated that while she has taken vacation I
this year, she will not be able to use both the current 2002 vacation and the remaining vacation balance
of 2001. Loso stated that while he is not opposed to making some agreement regarding the vacation
balance, he is concerned with setting precedence with other employees or the union. The Council
requested that the City Attorney be contacted for assistance in seeking resolution to this matter.
Adiourn: The meeting was adjourned by consensus at 3:45 PM
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8~~s~rator I Clerk
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