10-24-2016 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL. Monday, October 24, 2016 7:00 o'clock p.m. 3. BOND SALE — SALE OF GENERAL OBLIGATION REFUNDING BONDS SERIES 2016A — RESOLUTION NO. 6684 (continued) Anhut stated while it might sound like a small difference, it will add up over a six year period. The bid from Dougherty also included a reoffering premium, which basically means that Dougherty is willing to pay the City higher than face value for the bonds. As a result of that premium, the final amount of principal outstanding is $2,086,000, which is a substantial decrease from the $2,795,000 that was originally anticipated. There were also some reductions in the cost of issuance and fees. Anhut stated the bottom line is that it means greater savings to the City than what was anticipated. Council Member Levang asked if receiving seven bids is typical for that amount of money. Anhut stated they would generally expect five for a City that has a AAA rating and that seven exceeded their expectations. Anhut stated more bids means more competition. McMillan commented she was delighted to see that Moody's has reaffirmed the City's AAA rating and that they were able to obtain a very good interest rate. Levang moved, Printup seconded, to adopt RESOLUTION NO. 6684, a Resolution Awarding Sale of $2,705,000 General Obligation Street Reconstruction Refunding Bonds, Series 2016A, Fixing the Form and Specifications Thereof, Providing for Their Execution and Delivery and Providing for their Payment. VOTE: Ayes 5, Nays 0. PUBLIC HEARING 4. PUBLIC HEARING REGARDING THE CERTIFICATION OF DELINQUENT UTILITIES — RESOLUTION NO. 6685 Olson stated each year the City certifies to Hennepin County all unpaid annual service charges for the septic program, the recycling program, and all delinquent sewer and water accounts of $50 or more, to be collected with the following year's taxes. In addition to the outstanding delinquent amounts, 8 percent interest is added to all accounts and an administrative fee of $25 is added to all accounts. The total amount to be assessed is $129,210.71, which is a slight increase from 2015. The amount will be decreased by any payments received up to the final payment date of November 23, 2016. State statutes require the City hold a public hearing regarding the assessment of these fees prior to certifying the assessment roll to the county. Notices of the public hearing have been sent to all delinquent properties. Mayor McMillan opened the public hearing at 7:12 p.m. There were no public comments received. Mayor :McMillan closed the public hearing at 7:12 p.m. Page 2 of 8