HomeMy WebLinkAbout01/28/2004CITY OF APPLE VALLEY
Dakota County, Minnesota
January 28 , 200 4
Minutes of the special meeting of the City Council of Apple Valley, Dakota County, Minnesota,
held Jan uary 2 8 th, 200 4 , at 6 :30 o’clock p.m., at Apple Valley Municipal Center.
PRESENT: Mayor Hamann - Roland; Councilmembers Bergman, Erickson, Goodwin, and
Grendahl.
ABSENT: None.
City staff members present were: City Administrator Lawell, City Clerk Mu eller , Finance
Director Ballenger, and City Engineer Gordon .
Mayor Hamann - Roland called the m eeting to order at 6 :30 p.m.
APPROVAL OF AGENDA
MOTION: of Erickso n, seconded by Bergman , approving the agenda for to night ’s meeting as
presented. Ayes - 5 - Nays - 0.
SALE OF CITY REFUNDING BONDS
Steve Mattson, of Northland Securities, fiscal consult ant, was present and distributed an offer to
purchase g ross revenue recreational facility refunding bonds of the City in a negotiated sale. The
original bonds were issued in 1995 to finance Hayes Park Arena. The refinancing would result in
a total debt s ervice savings to the City of $98 , 746.26.
He advised the Council that Moody’s Investors Services, the organization that awards bond
ratings to communities across the country , upgraded the credit worthiness of Apple Valley bonds
from A a 3 to A a 2. This upgr ade results in more advantageous interest rates for the City. He
distributed a list of the 23 cities in Minnesota that are rated Aaa, Aa1, and Aa2.
Councilmember Grendahl asked if the debt service savings can be dedicated to reducing the
internal loan to the Sports Arena. Mr. Mattson said the Council could make that decision , but
noted the total savings will not be achieved until 2014 whe n the bonds are paid off.
Resolution No. 200 4 - 3 4
MOTION: of G rendahl , seconded by Bergman , adopting providing
for the issuance and sale of the City’s $ 1,015 ,000 G ross Revenue Recreational
Facility Refunding Bonds of 200 4 to Northland Securities, Inc., at a n average
interest rate of 4.1091 percent and net effective interest rate of 4.4158 percent, and
authorizing executio n of the necessary documents to complete the sale. Ayes - 5 -
Nays - 0.
Mr. Mattson then distributed an offer to purchase general obligation refunding bonds of the City
in a negotiated sale. The original bonds are a combination of four bond issues, issu ed in 199 7
(Chapter 429 Bonds, State Aid Road Bonds, Park Bonds, and Cemetery Bonds) . Initial
CITY OF APPLE VALLEY
Dakota County, Minnesota
January 2 8 , 200 4
Page 2
calculations showed refinancing would result in a debt service savings to the City of $539,431.19.
By locking into sureties for the escrow account, t he refinanc ing result s in a total debt service
savings to the City of $ 645,206.72 .
Resolution No. 2004 - 35
MOTION: of Erickson, seconded by Goodwin, adopting providing
for the issuance and sale of the City’s $11,010,000 General Obligation Refunding
Bonds of 2004 to N orthland Securities, Inc., at an average interest rate of 3.3988
percent and net effective interest rate of 3.5246 percent, and authorizing execution
of the necessary documents to complete the sale. Ayes - 5 - Nays - 0.
MOTION: of Erickson, seconded by G rendahl, to adjourn. Ayes - 5 - Nays - 0.
The meeting was adjourned at 6:54 o’clock p.m.