04-14-2014 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________ Page 28 of 30 (18. POLICE GARAGE AND ADDITION PROJECT, 2750 KELLEY PARKWAY, Continued) (b) Supplemental Capital Improvement Plan and Confirm Intent to Issue Bonds - (Public Hearing) – RESOLUTION NO. 6385, Continued Walsh noted the contract remains for eight years and that bonds are extending it out to 15 years. Walsh stated it will be more difficult in the later years to levy additional debt. Walsh stated the City is spreading the debt out for a longer period to make it look better in the early years. McMillan stated in 2023, the 2008 street reconstruction bonds will be finished, which will amount to approximately $480,000. McMillan stated the City has to make periodic investments in its infrastructure. Walsh stated he was attempting to be more transparent with where the dollars are going and not grouping it in with something else. Walsh stated the plan is a good plan, but that he wants to be clear that the City should not champion it as a 10-year service contract when the bonds are being spread out over 15 years. Bremer stated the contract could be renewed. McMillan stated the City has to make some calculated assumptions. Walsh stated his personal goal is to lower debt rather than extend it simply to make the upfront years look better. Walsh stated if the City requires more money for the project, they should look at doing something different rather than making it look artificially lower in the early years. McMillan closed the public hearing at 9:46 p.m. Kimmel stated the City Council should have the capital improvement plan in their packet and that the Council should consider the supplemental capital improvement plan, followed by a public hearing for the tax abatement. Levang moved, Bremer seconded, to adopt RESOLUTION NO. 6385, a Resolution Calling Public Hearing on the Intention to Issue General Obligation Capital Improvement Plan Bonds and the Proposal to Adopt a Supplemental Capital Improvement Plan for 2014 through 2019 under Minnesota Statutes, Section 475.521. VOTE: Ayes 3, Nays 0. (c) Property Tax Abatements Relating to Big Island Financing (Public Hearing) – RESOLUTION NO. 6386 Nick Anhut, Ehlers & Associates, stated there is a requirement for the City Council to open the public hearing to allow for public input on the issue of authorizing property tax abatement bonds for Big Island. The purpose of the bonds is to refinance the HRA’s existing 2005 public project revenue bonds that are outstanding for the next three to four years. Tax abatement Chapter 469 authorizes municipalities to issue a general obligation pledge for public projects, which requires that the City hold a public hearing.