Committee Minutes

MINUTES/FINANCE COMMITTEE
Monday, October 3, 1994 - 6:45 p.m.

Members present: Carpenter, Babinchak, Geller, McCabe.

1. Matter of bond resolutions:
Wally Dornfeld, Springsted, Inc., reviewed recommendations for the various bond issues:

a) $1,925,000 Sewer Revenue Bonds, 1994-D
Mr. Dornfeld recommended that a Moody's rating be requested, and that they proposed to take bids on November 7.

Moved by McCabe and Babinchak that we adopt a resolution relating to the issuance of $1,925,000 Sewer Revenue Bonds, Series 1994-D, and calling for the public sale thereof, and set date of sale as November 7, 1994. Motion carried.

b) $265,000 Tax Increment Issue (Roadrunner Investments) - Series 1994-C
Mr. Dornfeld reported these are general obligation of the City of Grand Forks, either levy or come from other available funds of the City, usually two-year period before City starts to collect tax from that increment.

Moved by Babinchak and Geller that we adopt the initial resolution authorizing issuance and call for the public sale of general obligation tax increment bonds, Series 1994-C, with a term of 15 years, and set date of sale as November 7, 1994. Motion carried.

c) $2,470,000 Improvement issue, Series 1994-B
Mr. Dornfeld reported that proceeds of issue used to finance improvements throughout the city and payable from special assessments against benefitted property. He reported that the City received a double A rating.

Moved by Geller and Babinchak that we adopt a resolution relating to $2,470,000 Refunding Improvement Bonds, Series 1994-B, and calling for the public sale thereof, and set date of sale as November 7, 1994. Motion carried.

d) $700,000 CVB Revenue Bonds,
Mr. Schmisek reported that this issue will be handled little differently, bids were to come in earlier on this issue, that council has approved putting into place 1% tax to pay this debt; Mr. Dornfeld reported they would negotiate bond issue for the City as an agent for the City, not do public bidding, and is more economically feasible to do issue this way.

Moved by Babinchak and McCabe that we introduce an ordinance authorizing the incurring of debt payable from Hotel-Motel Tax proceeds to finance the costs of capital improvements and establishing procedures thereof. Motion carried.

MINUTES/FINANCE COMMITTEE
October 3, 1994 - Page 2

2. Discussion re. number of small issues being sold.
Mr. Dornfeld reported that there are a lot of small TIF issues, that these are tending to pile up as far a debt is concerned, that there's a point in time where City maybe should think about some of the smaller issues as a total, and that this is just a word of caution. He also stated that after talking to local banks, that maybe this is something they might be interested in. Mr. Schmisek stated they also have concern about smaller issues, and want to get process in place.

Meeting adjourned.

Alice Fontaine
City Clerk