11/25/1996 - City Council Special 00430
MINUTES OF A SPECIAL MEETING OF THE
•
EAGAN CITY COUNCIL
Eagan, Minnesota
November 25, 1996
A special meeting of the Eagan City Council was held on Monday, November 25, 1996, at 5:00
p.m. in the City Council Chambers. Present were Mayor Egan and City Councilmembers Awada, Hunter, Masin and
Wachter. Also present were Director of Finance VanOverbeke, Paul Donna, fiscal consultant from Springsted, Inc.
and City Administrator Hedges.
VISITORS TO BE HEARD
There were no visitors to be heard.
SPECIAL CITY COUNCIL MEETING
City Administrator Hedges stated that a Special City Council meeting is proposed for Wednesday,
December 4 at 5:00 p.m. to meet with the APRNRC to discuss various park related items. In a motion by City
Councilmember Wachter, seconded by City Councilmember Hunter, all members voting in favor, a Special City
Council meeting was scheduled for Wednesday, December 4 at 5:00 p.m.
BID AWARD G.O. IMPROVEMENT BONDS,SERIES 1996A
96.107
Paul Donna, Springsted, Inc., stated that the first bond sale was in the amount of$6,115,000 to
provide funding for thirteen improvement projects which are now completed and assessed or will be in the near
future. He stated that the General Obligation Improvement Bonds, Series 1996A received ten bids which is an
extremely high number of bids for a G.O. improvement bond issue. Mr. Donna stated that the low bidder is Harris
Trust& Savings Bank at a true interest rate of 4.9918%. He stated that the interest rate estimated for this sale was
5.27%. City Councilmember Wachter asked for the definition of a true interest rate. Mr. Donna stated that this is the
weighted interest rate over the life of the bonds which also considers the discount.
After further review, in a motion by City Councilmember Awada, seconded by City Councilmember
Wachter, all members voting in favor, a resolution authorizing the sale of $6,115,000 of General Obligation
Improvement Bonds, Series 1996A to the low bidder, Harris Trust&Savings Bank, at a true interest rate of 4.9918%
was approved.
$350,000 GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF INDEBTEDNESS,
SERIES 1996B
96.108
Mr. Donna stated that three bids were received with Norwest Investment Services, Inc. being the
low bidder at a true interest rate of 4.3282%for the$350,000 G.O. Equipment Certificates of Indebtedness, Series
1996B. He stated that the estimated interest rate was 4.08%.
In a motion by City Councilmember Hunter,seconded by City Councilmember Awada, all
members voting in favor, a resolution authorizing the sale of$350,000 General Obligation Equipment Certificates of
Indebtedness, Series 1996B to Norwest Investment Services, Inc.at a true interest rate of 4.3282%was approved.
$995,000 GENERAL OBLIGATION STATE AID ROAD REFUNDING BONDS,SERIES 1996C
Mr. Donna stated that Norwest Investment Services, Inc.was the low bidder of six bids submitted 96.109
for the$995,000 General Obligation State Aid Road Refunding Bonds, Series 1996C at a true interest rate of
4.2472%. He stated that the interest rate estimated for this sale was 4.55%,again emphasizing the excellent rate
on this bond sale.
In a motion by City Councilmember Awada, seconded by City Councilmember Wachter, all
members voting in favor, a resolution authorizing the sale of$995,000 General Obligation State Aid Road Refunding
Bonds, Series 1996C to the low bidder, Norwest Investment Services, Inc., at a true interest rate of 4.2472%was
• approved.
00431
Page 2/Eagan Special City Council Meeting Minutes
November 25, 1996
Mr. Donna stated that Moody's bond rating was Aa and Standard&Poors' rating was a AA-which
are excellent ratings for the community. He attributed the strong ratings and a good showing in the market to the
City's strong financial management,healthy financial position and overall community wealth relative to the
communities.
ADJOURNMENT
There being no further business,the meeting was adjourned a 5:25 p.
November 25, 1996
,
Date City Clerk
TLH
•
•