11-04-85 Finance Comm Minutes* - NOVEMBER 4, 1985 FINANCE COMMITTEE 4:00 PM
Mayor McDowell, Councilmen Ruiz, Palmer, Saverud and Nystul, City Attorney
• Neier, Clerk/Treasurer Halver, C.D.D. Ed Gallagher, Bob Ehlers and Dale Pugh
of Dain Bosworth, and Accountants Tom Torgerson, Roger Jellison, Dan Eigeman,
Julie Marshall, and Ev Sliter.
Councilman Ruiz called the meeting to order and stated Bob Ehlers was here to
bring us up to date and put everything in order for the second reading of
Ordinance 1065 and the sale of the bonds.
Bob Ehlers stated he and the bond counsel attorney are requesting outside
verification of the information supporting the tax increment revenues pledged
to pay off the bond issue. He suggested we needed to send out a request for
proposals but was not sure exactly what should be required in that proposal.
Ev Sliter asked if the city had any projections available and Ed Gallagher
answered all we had was the annual report from the County Assessor.
Bob Ehlers felt the difficult projection would be the future increase in the
districts tax value. He said we need the report on or before mid December.
Dan Eigeman requested a specific written request so everyone would be bidding
on the same basis.
Councilman Ruiz asked for clarification of what would be audited and Bob
Ehlers stated it wasn+t really an audit but rather a confirmation of the
figures being used in the bond projection.
• Councilman Palmer moved the Mayor, Clerk, and Bond Counsel be authorized to
issue a letter soliciting bids for this and Councilman Ruiz seconded. Motion
carried.
Ev Sliter asked whether we wanted an hourly rate with an upper limit or an
fixed price.
Councilman Nystul reported it would be difficult to get a fixed price bid
because of the uncertainty of the amount of research required to reach the
conclusion. He recommended we request an hourly rate quote.
Councilman Ruiz stated the review might discover additional revenues that
have not been collected previously.
Dan Eigeman suggested the city and/or county provide the projection figures
with the accountants providing an opinion on the figures.
Mr. Ehlers and the City Clerk/Treasurer will determine if the city will put
together the figures to be confirmed.
0
Bob Ehlers next requested to receive authority from the Council to proceed
with the sale of the bond. A reserve fund will not be required as long as
• there is 125% coverage of the issue. The city also must decide if they want
a 10 year call or some other term. He preferred the 10 year term and the
committee concurred.
He requested the city proceed to have the resolution ready to pass on
November 18.
Chairman Ruiz asked if the city can adjust the projects set out in the
resolution. Considerable discussion followed with the consensus being the
budgets of the declared projects could be increased, decreased or deleted but
new projects could not be introduced without another council hearing and
resolution. Councilman Palmer felt that the word "shall" should be replaced
with "may" so the council is not locked into performing the projects by the
word "shall" making the projects mandatory. It was concluded other wording
in Section 2 of the resolution adequately addressed this question.
Bob Ehlers said he would like the authority from the council tonight to
proceed with the sale of the bonds under mutually agreeable terms and
conditions to be worked out, On November 18 there will be a resolution with
the terms and conditions spelled out for the council to adopt.
If for some reason the city did not issue the bonds, the city would be liable
for the legal costs.
dgh
0
•