2011-04-11 Study Session Budget - Laserfiche WebLink

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CITY OF UNIVERSITY CITY COUNCIL STUDY SESSION April 11, 2011 The Council Budget Study Session was held on the fifth floor of City Hall, on Monday, April 11, 2011. Mayor Welsch called the meeting to order at 5:30 p.m. In addition to the Mayor the following members of the Council were present: Mr. Stephen Kraft Mr. Terry Crow Mr. Michael Glickert Mr. Arthur Sharpe, Jr. Ms. Lynn Ricci Mr. Byron Price Also present were the City Manager Lehman Walker, the Finance Director/Deputy City Manager Janet Watson, and the Director of Community Development Andrea Riganti. This Council Study session was a continuation of City departments’ Fiscal Year 2012 Budget study. Ms. Watson continued with the second part of the Administrative Services budget presentation. She said she had a Financial Analyst review the City’s bond issuances to see if they are worth refinancing. Looking at the General Obligation Bonds, Series 2005 the outstanding balance is $875,000. The first call date was 3/1/2010 and the maturity is in 2015. She noted that there is a year of reserves so it actually will pay off in 2014. She said with the small amount remaining and the cost of reissuance fees this would not be one for refunding (refinancing). There is the availability to issue a no tax increase bond issue, which would increase funding for future items without increasing the tax levy, but it would be a Council decision. Ms. Watson said the second one is the Special Obligation Bonds, Series 2005 with $475,000 remaining with a call date of 2/1/2013. Again because of the small amount remaining and the cost of reissuance fees this would not be one for refunding. Ms. Watson explained that the call date is the first time you could refinance. Ms. Watson said the Certificates of Participation, Series 2003 with $3,920,000 outstanding could bring a significant savings if refinanced. If done before the call date of 2/1/2012, it would be considered an advance refunding. She said the things that would be considered are how the current reserves are invested, the market conditions and the rates as they have been fluctuating. The preliminary data suggests that the City could save $100,000 over the life of the issue if refinanced, assuming the rates remained the same. The fourth issuance was Certificates of Participation, Series 2004 with a call date of 2/1/2013. Ms. Watson said it would not be feasible at this time with only $89,000 savings as the cost of the reissuance would eat up the savings. Ms. Watson said because of the length of the issuance it should continue to be monitored. Mr. Crow asked if the $100,000 savings was net and Ms. Watson agreed. Ms. Watson spoke on the delinquencies in the City as trash, ambulance fees, and demolition costs and will be providing a list of options to the Council in the near future. Mr. Walker introduced the department of Community Development: Director Andrea Riganti, Building Commissioner Jarred Agee and Deputy Director for Planning, Zoning and Economic Development Raymond Li.