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HomeMy WebLinkAbout06-07-21 Finance Com MinutesDUBLIN CITY COUNCIL FINANCE COMMITTEE Monday, June 7, 2021 — 4:00 p.m. Virtual Meeting -Minutes Ms. Alutto called the Finance Committee meeting of June 7, 2021 to order at 4:00 p.m. Committee members presen : Ms. Alutto and Mr. Peterson. Mr. Keeler arrived at 4:26 p.m. Staff members present: Mr. Stiffler, Ms. Ocheltree, Mr. Robison, Ms. Murray, Ms. Noble, Mr. Rogers, Ms. O'Callaghan, Mr. Farrar Also Dresent: Jamie Greene and Logan Stang, Planning NEXT� Tom Ricchiuto and Brian Cooper, Baker Tilly Municipal Advisors DIS!CUSSION IIEMS Mr. Stiffier gave a brief introduction of the items before the Committee. Bond Refunding Mr. Stiffier introduced the representatives from Baker Tilly Municipal Advisors that were present at the meeting. Mr. Cooper, Baker Tilly Municipal Advisors, provided a brief debt portfolio summary. • The City has a total of $177 million outstanding bonded debt. He detailed *-4 bonds that will be callable in December of 2021 and explained that the City has the option to redeem the bonds and take advantage of interest rate savings. Interest rates have hit all-time lows though they are predicted to go up. Overall, the newly issued bonds can create about just under $2 million in savings per year in net savings for the life of the bonds. This is a 9.61% savings. • He stated that they have sized a $1 million issuance for sanitary sewer over 20 years as well as a $5.7 million bond for park improvements, • The recommendation is to move forward with the $1 million this year while they are still evaluating whether or not to move forward with the $5.7 this year or next. The biggest risk on delaying is an increase in interest rates and he feels that risk is nominal. • They want to time the issuance to close in early September. Bond ordinances will be coming to City Council soon and they will work on getting the bonds to market. They will work with ratings agencies and feel good about where the City stands with those agencies. Mr. Peterson asked if this re -financing adjusts the maturity date of the bonds. Mr. Cooper explained that this does not extend or shorten the current maturities of the bonds because the useful life and maximum maturities were certified when they were initially issued. Finance Committee Minutes June 7, 2021 Page 2 Ms. Alutto asked when this was anticipated to come before Council. Mr. Stiffier stated that the Riverside Drive financing will be discussed at the June 14 meeting and it is his recommendation that the, financing, continue to #• deferred. These ordinances will all be brought forward at the June 28 Council meeting and voted on at the July 26 Council meeting so that they are effective by the end of August. The rating and financing process can then begin and the money can be obtained by early September. Mr. Stiffier added that almost all debt issued is a 20 -year debt with a 10 -year call. The calls have become important because early re -funding has been eliminated in recent laws. Tax Increment Financing (TIE) Mr. Stiffler introduced new Financial Analyst Meghan Murray. Dublin 2035 Mr. Greene shared a summary of the big ideas that were provided by all four committees. He provided direction to the Committee asking them to • which of these ideas should be elevated to a priority level and why. The list of ideas has been June 7, 2021 Page 3 Finance Committee Minutes June 7, 2021 Page 4 transportation, and housing. She noted that Ms. Noble is worHing on a Dublin housing study. Ms. Alutto stated that creating a resident ID card is a tactic, not a big idea and makes her uncomfortable. She stated that this is already being done through the DublinGo app. The big idea is to connect residents to services and there are other tactics. Mr. Greene suggested that any additional comments be provided to Ms. Noble by June 21. He closed by asking what type of city Dublin would be in 2035 if they addressed these ideas. Mr. Rogers answered that it would be fiscally stable. Mr. Peterson stated that it would remain cutting edge. Ms. Alutto stated that it would be diverse and thriving in many different ways. Mr. Keeler added "fiscally robust.' Other adjectives added were "desirable," "'enjoyable," and "a community of choice." There being no further business to come before the Committee, the meeting adjourned at —�'erk If Council