Committee Minutes

MINUTES/FINANCE COMMITTEE
Tuesday, November 14, 1995 - 3:45 p.m.

Members present: Carpenter, Babinchak, Geller, McCabe.

3. Matter of surplus city property.
Bobby Owens reported that this is equipment/property turned in by various departments, offered to other city departments for a 30-day period, and the 30-day notice ran out October 27 (property includes desks, chairs, computer stand, printers, computer/monitor, etc.). Moved by Babinchak and Geller to declare the property as surplus and to offer for sale. Motion carried.

4. Matter of 1995 Refunding Improvement Bonds.
Wally Dornfeld, Springsted, Inc., reviewed Recommendations for the $4,655,000 Refunding Improvement Bonds, Series 1995G, and reported that the purpose of the recommendations is to establish time-frame for issuing bonds for the various improvements City needs to fund, that Mr. Carsen and Mr. Schmisek have been working to get numbers together to determine what projects could be financed, and are asking that the City establish terms and conditions of the offering for various improvements within the city which will be assessed against benefitted properties, principal amount of the offering is $4.655 Million, repayment term December 1, 1997 to 2015, source of debt service revenues is special assessments against benefitted properties, optional redemption: bonds maturing 2006 through 2015 are callable l2-01-05, a credit rating will be requested from Moody's Investors Service, and sale date and time is Monday, December 4, 1995 at 7;30 p.m. He reported they will receive bids in their office and will report to the city council that evening. He stated that the projects being financed are listed in the report and are identified by both project and district number, number of years assessed and starting date of the assessment. He reported that the total project costs were $4,553,885, issuance cost of $31,290 and allowance for underwriters discount of $69,825, which brings total to $4.655 Million; that 11 projects will be placed on the assessment roll in November of 1995 and remaining 20 projects assessed November, 1996 for collection beginning in 1997, their projections are 1 1/2% over the interest rate they expect on the bonds, 428 on this issue, the remainder of the documentary is fairly standard as it pertains to the issue. He stated that the City is moving ahead pretty fast on a lot of projects, although still a solid double A credit, they will look at City little harder each time they come to market because of frequency City has come to market, and that he has suggested to Mr. Schmisek that after the first of the year they should sit down and have a working session with the finance committee and department heads to see what's ahead for 1996; that this year the City entered the market on 7 separate issues and would like to see that condensed so not on the market as much.

Mr. Dornfeld stated that another thing City facing is the
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secondary market disclosure which started in July of this year, and going to be required to file various documents with holding companies to indicate financial status on the issues sold since that time, and the fact that the City does come to the market every year will make it a little easier for the City, that have to relent to the secondary market disclosure, or won't get anyone to bid on the bonds because can't sell bonds unless City has covenanted to do the market disclosure because of defaults and other political things. He stated that Grand Forks has been doing that over the course of time with their advisement (ie., Air Force Base situation) and those things be continued to be disclosed and any other material fact. He stated they will help City in making disclosures or keeping up to date on them as part of their service. He stated they are expecting about a 5.30% rate on the bonds.

Moved by Geller and McCabe to adopt the resolution authorizing issuance of the bonds and offer for sale, with sale date set for December 4, 1995 at 7:30 p.m. Motion carried.

1. Applications for abatement of taxes:
a) 1992 and 1993 taxes by Johnson Farms for property at 2397 DeMers Ave. (ASCS Office Bldg., Lots F and C, Blk. A, Westward Acres Subdivision).
Mel Carsen, city assessor, reported this property built in 1991/92 and occupied shortly after that, owned by Johnson Farms, that there's quite a difference in their calculation and assessor's statement of valuation; that he discussed with Bert Johnson, and after reviewing, his recommendation is to reduce valuation for 1992 from $463,700 to $440,600 and for 1993 from $474,700 to $440,600. He stated this was based on three factors: 1) recalculated cost approach, 2) income approach based on expenses that supports slight reduction; and 3) comparison of comparable properties; that applicant's request is to reduce to $341,481.56 for both years. He reviewed comparables with the committee, and stated that he feels value should be $440,600. He reported that he notified Mr. Johnson of this meeting; a rep., Rod Stegman was present, but stated he didn't wish to make any comments because he was only informed of the meeting at 3:30 today. The committee held the matter for 2 weeks to give the applicant time to provide additional information for their consideration. Held to November 28 at 3:45 p.m.

2. Matter of clarification of CVB lease.
Mr. Schmisek reported that Mr. Hart is out of town; held until November 28 meeting.

5. Matter of proposed license and permit fees.
Mr. Schmisek reviewed proposed license and permit fee schedule with present and proposed fees to recover City's costs associated with them, and reported that these figures were used
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in the 1996 budget. There was some discussion re. necessity/ reason for various licenses and whether some could be
eliminated. After discussion the committee decided to approve as presented and if after further review they wanted to consider eliminating some of the categories, the matter would be brought back.

Moved by Babinchak and McCabe to approve proposed license and permit fees, and to introduce ordinance for first reading. Motion carried.

McCabe excused.

6. Budget amendment:
a) Assessing Department.
Mr. Schmisek reviewed budget amendment in the amount of $1,000 which is funding to finish computer program started by an individual who has since left City's employment, that funds are available using carryover, and recommended approval. Moved by Babinchak and Geller to approve. Motion carried.

7. Matter of pledged securities.
Chairman Carpenter will review securities prior to Monday night's council meeting.

Meeting adjourned at 4:30 p.m.

Alice Fontaine
City Clerk

Dated: 11/15/95