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 29 of 30 (18. POLICE GARAGE AND ADDITION PROJECT, 2750 KELLEY PARKWAY, Continued) (c) Property Tax Abatements Relating to Big Island Financing (Public Hearing) – RESOLUTION NO. 6386, Continued Anhut indicated the individual parcels identified are to be abated. Anhut stated abatement in this instance is a bit of a misnomer since the taxes are not actually being reduced but the City is rather allocating those existing resources towards a specific public project, which in this case is the refinancing of the acquisition of the fire hall from the HRA. In doing so, the City will be able to refinance and swap interest rates as was discussed previously. Included within the resolution is a list of physical properties that are affected. McMillan asked if there is a difference between tax abatement and general refunding. Anhut stated the existing bonds are a different security and are an annual appropriation debt, which makes them subject to lease payments to the HRA. The HRA takes those lease payments to make the bond payments. Anhut stated with the abatement, the City is will be accessing its general obligation pledge and its AAA rating to secure a lower interest rate. Kimmel stated the only reason this was not done in 2005 is that this tool was not available then. Mayor McMillan opened the public hearing at 9:50 p.m. There were no public comments regarding this item. Mayor McMillan closed the public hearing at 9:50 p.m. Levang moved, Bremer seconded, to adopt RESOLUTION NO. 6386, a Resolution Authorizing Property Tax Abatement for Big Island Acquisition Financing. VOTE: Ayes 3, Nays 0. (d) Sale of Capital Improvement, Water, and Big Island Bonds – RESOLUTION NO. 6387 Kimmel stated this resolution authorizes Ehler’s & Associates to move forward with the sale of the bonds. Levang moved, Bremer seconded, to adopt RESOLUTION NO. 6387, a Resolution Providing for the sale of $3,385,000 in Capital Improvement Bonds; $1,305,000 in Water Bonds; and $690,000 in Tax Abatement Bonds for Big Island. VOTE: Ayes 3, Nays 0. CITY ADMINISTRATOR’S REPORT, CONTINUED Loftus stated last week the City opened their leaf and grass disposal site at the Public Works Department. The site will be available Monday through Saturday. Loftus stated Hennepin County has issued a burning ban for the next four to six weeks. Camp fires will be allowed but the City will not be issuing any burn permits. Loftus stated a 3’ x 3’ recreational fire is allowed.