Finance Committee

CITY OF VERONA MINUTES FINANCE COMMITTEE JUNE 10, 2013 VERONA CITY HALL 1. The meeting was called to order by Scott Manley at 6:19 p.m. 2 Roll Call: Elizabeth Doyle, Scott Manley. Absent (excused): Mac McGilvray. Also present: Bill Burns, City Administrator; Cindy Engelke, Finance Director; Mike Harrigan, Ehlers & Associates; Jon Hochkammer, Mayor; Brad Stiner, Alderperson. 3. Approval of the 5/282013 Finance Committee Minutes: Motion by Manley, seconded by Doyle, to approve the 5/28/2013 Finance Committee Minutes. Motion carried 2-0. 4. Payment of Bills: Motion by Manley, seconded by Doyle, to approve the payment of bills in the amount of $910,857.92. Motion carried 2-0. 5. Out-of-Office Checks: Motion by Doyle, seconded by Manley, to approve the payment of out-of-office checks in the amount of $2,641.66. Motion carried 2-0. 6. Resolution R-13-019 Authorizing the Issuance and Sale of Approximately $5,945,000 General Obligation Refunding Bonds, Series 2013A: Mr. Harrigan presented the bid results for the sale of General Obligation Refunding Bonds. This issue would refinance the City’s 2007 General Obligation Bonds and 2010 Taxable General Obligation Build American Bonds. Two bids were received with the low bid submitted from a consortium led by R.W. Baird with a True Interest Cost (TIC) of 2.4022%. Since the bonds were bid with a premium, the issue size can be reduced to $5,795,000. Motion by Manley, seconded by Doyle, to recommend approval of resolution R-13-019 awarding the sale of $5,795,000 General Obligation Refunding Bonds, Series 2013A. Motion carried 2-0. 7. Resolution R-13-020 Authorizing the Issuance and Sale of $2,460,000 General Obligation Promissory Notes, Series 2013B: Mr. Harrigan also presented the bid results for the sale of General Obligation Promissory Notes. This is a new money issue that would finance the City’s 2013 capital improvement projects. Five bids were received with the low bid submitted from UMB Bank with a True Interest Cost (TIC) of 1.7169%. Motion by Doyle, seconded by Manley, to recommend approval of resolution R-13-020 awarding the sale of $2,460,000 General Obligation Promissory Notes, Series 2013B. Motion carried 2-0. 8. Resolution R-13-021 Designating Officials Authorized to Declare Official Intent Under Reimbursement Bond Regulations: Mr. Burns explained that due to the timing of projects and the City’s debt issue, the City sometimes needs to incur expenses and reimburse itself from the proceeds of borrowing. Bond counsel at Quarles and Brady recommend that the City adopt a resolution authorizing the City Administrator to issue a Declaration of Official Intent stating the City’s intention to reimburse costs from  borrowing. Motion by Doyle, seconded by Manley, to recommend approval of resolution R-13-021. Motion carried 2-0. 9. Request for Tax Increment Financing Assistance for a Project at 416-422 E. Verona Avenue: Mr. Burns presented a draft term sheet summary for potential TIF assistance for a project at 416-422 E. Verona Avenue. These properties are proposed to be redevelopment with the construction of an approximately 8,000 square foot commercial building. Under the draft terms, the property could be eligible for an annual TIF incentive payment based on the amount of additional tax increment generated from the properties after the redevelopment. The total payment is proposed to be capped at $175,000 over a nine year period. The City has also expressed interest in acquiring right- of-way from the frontage of the property. The Committee directed staff to begin preparing a draft development agreement for the project and to obtain an estimate for the cost of an appraisal for the right-of-way acquisition. 10. Adjournment: Motion by Doyle, seconded by Manley, to adjourn the Finance Committee Meeting at 6:50 p.m. Motion carried 2-0. Respectfully submitted, Bill Burns, City Administrator