2018-07-02 Council Work Session MinutesCITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the City Council Work Session
Held July 2, 2018
Pursuant to due call and notice thereof, a work session of the City Council, City of Mendota
Heights, Minnesota was held at the City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota.
CALL TO ORDER
Mayor Garlock called the meeting to order at 6:33 pm. Councilmembers Duggan, Miller, Paper,
Petschel were present.
City staff present included Mark McNeill, City Administrator; Kristen Schabacker, Finance
Director; Dave Dreelan, Fire Chief; Scott Goldenstein, Assistant Fire Chief; Andy Pratt, City
Attorney; and Stacie Kvilvang of Ehlers and Associates.
FIRE STATION BOND STRUCTURING
City Administrator McNeill said that an earlier meeting with the City Council on May 30th
resulted in the raising of a question as to how the termination of the Par 3 Bonds in 2023 might
impact the City in the repayment of any municipal bonds for the Fire Station improvements,
should those be determined to be issued.
In response, Stacie Kvilvang reviewed several options for structuring the Fire Station Bonds
which had been created by Ehlers, the City's financial consultant. Those options included
straight 15 and 20 year repayment schedules; paying interest only for the first four years (until
the Par 3 Bonds are retired) and then applying approximately $260,000 of Par 3 proceeds to the
fire station bonds; and options for interest only for four years, with $160,000 to be applied to fire
bonds. In the latter case, $100,000 of the Par 3 bonds would then go to ongoing Parks facilities
improvements.
Councilor Petschel asked Ms. Kvilvang if any of these options would negatively affect the City's
AAA Bond rating. She was told that these would not. Councilor Duggan said that he had seen a
report that the average value of a home in Mendota Heights had gone up to $400,000, as
compared to the $356,000 figure which has been used in the estimates provided to the City
Council.
Administrator McNeill reviewed the impact of the May, 2018, ISD 197 School referendum;
Councilor Petschel stated the need to be certain that taxpayers are educated on those impacts.
Councilor Miller asked if it was better to go with the straight repayment, or to one of the options
which provided for Par 3 bond payments supplementing the fire bond payments. Administrator
McNeill said that from an aspect of minimizing the amount of interest to be repaid, the straight
repayment plan would be preferable. However, the choice of structuring would be a policy
decision of the City Council. Councilor Paper felt that a straight repayment is preferable, but
that the City needs to find a good way to fund parks.
Ms. Kvilvang said that bonds should not be issued until bids are received, so that the correct
amount of the bonds will be known. Assuming the fire station project goes ahead, she said that
the City will pay interest only on the bonds in 2019; principal and interest payments would begin
in 2020.
ADJOURNMENT
There being no further business, Mayor Garlock adjourned the meeting at 6:55 PM.
Neil Garlock
Mayor
Lorri mith
City Clerk
2018-07-02 Council Work Session Minutes Page 2