WS 2009 02 09
CHANHASSEN CITY COUNCIL
WORK SESSION
FEBRUARY 9, 2009
Mayor Furlong called the work session to order at 5:30 p.m.
COUNCIL MEMBERS PRESENT:
Mayor Furlong, Councilwoman Ernst, Councilwoman
Tjornhom, and Councilman McDonald. Councilman Litsey arrived after the first item of
discussion.
STAFF PRESENT:
Todd Gerhardt, Roger Knutson, Laurie Hokkanen, Greg Sticha, Paul
Oehme, and Todd Hoffman
REVIEW CROSSOVER REFUNDING OF $6,095,000 G.O. LIBRARY BONDS, SERIES
2002A.
Todd Gerhardt introduced Dave Callister and Mark Ruff from Ehlers and Associates. Greg
Sticha explained the regulations associated with the refunding request and passed out revised
numbers. Mark Ruff explained how the crossover refunding process is similar to an individual
refinancing their home mortgage and outlined a schedule for the bond sale and approval process,
highlighting the down side to refinancing now versus waiting or doing nothing at all. In
reviewing the matrix he had prepared, the city could see a saving of about $500,000 with the
crossover refunding. Councilwoman Tjornhom asked for clarification of the 3% number as a
rule for making the savings worthwhile in refinancing. Mark Ruff stated the city’s debt policy
specifies a 4 to 5 percent savings before taking action. With this request the city would see about
a 4% savings. Mayor Furlong asked what effect today’s economic climate has on the city’s
savings. Councilwoman Tjornhom asked about the associated risks. Councilman McDonald
asked for clarification on the bond amount numbers and the cost savings associated with
refinancing. Greg Sticha explained that there would be some associated staff time involved in
administering the crossover refunding. Councilwoman Ernst asked about investment interest
versus savings in interest on bonds. Mayor Furlong expressed his sense was to move forward
with the request and if the rates aren’t favorable at the time of the sale, Ehlers could recommend
not to proceed.
REVIEW PRIORITIES, 2009 KEY FINANCIAL STRATEGIES.
Todd Gerhardt reviewed the individual results of the priority rankings by council members,
explaining the color coding associated with the different overall rankings. Councilman
McDonald asked that his ranking regarding the satellite fire station #3 be changed because of a
misunderstanding of what was being asked. Councilwoman Ernst asked about renting versus
selling the current public works building. Mayor Furlong noted that generally the council was
consistent with their rankings. The council discussed individual items that received rankings in
the 2 to 3 range. Todd Gerhardt outlined a schedule of meetings to discuss the various key
financial strategies.
The work session was recessed at 7:00 p.m. It was reconvened at 8:00 p.m.
City Council Work Session - February 9, 2009
DISCUSS ECONOMIC DEVELOPMENT AUTHORITY BYLAWS.
Todd Gerhardt recommended changing the number of EDA members from 7 to 5 after
explaining the reason for having at large members on the board in the past and proposed
changing the bylaws to state that the Mayor and Deputy Mayor act as Chair and Vice Chair and
the associated duties of each.
Todd Gerhardt informed the council of the passing of Hud Hollenbeck, a long time Lake
Minnewashta resident.
Mayor Furlong adjourned the work session at 8:00 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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