10-11-22 Special City Council Meeting MinutesSPECIAL OTSEGO CITY COUNCIL MEETING
TUESDAY, OCTOBER 11, 2022
5:30 PM
OTSEGO PRAIRIE CENTER
Call to Order.
Mayor Jessica Stockamp called the meeting to order at 5:32 PM.
Roll Call: Mayor Jessica Stockamp; Councilmembers: Brittany Moores, Jeff Dahl, and Tom
Darkenwald. Present City Staff: City Administrator/Finance Director Adam Flaherty and City
Clerk Audra Etzel, Absent: Council Member Tina Goede
1. Administration:
4.1 Series 2022 Bond Issuance:
A. Presentation by City Administrator/Finance Director Flaherty
B. Consider Resolution 2022-81— Providing for Issuance and Sale of
Series 2022A Bond.
City Administrator/Finance Director Flaherty and Jessica Green with Northland Securities, Inc.
presented information on the Bond Sale Summary for the General Obligation Temporary Sewer
Revenue Bonds, Series 2022A. The Bond Sale Summary was handed out for City Council
consideration. Ms. Green noted the proceeds of the bond are temporary in nature and will
carry a 2-year amortization schedule with interest only payments until the maturity date of
November 1, 2024. The City will have the option to call the bond any time after November 1,
2023, depending on the MPFA funding availability.
' Ms. Green said two bids were received. The S&P rating was SP1+, which is a numbering
system used for temporary bonds. The rating scale is condensed compared to the traditional
rating, and the SP1+ is the best rating for this system. The par amount of $26,215,000 is
different due to the premium amount for what the investor is looking for and a 3.34% true
interest cost. The estimated interest was 3.87% and the bases points differed. The bid tab
summarized the two bids with Huntington Securities, Inc. being the low bid. Oppenheimer &
Co., Inc. had a bid closer to the market. The Par amount is $26,215,000, of which $26 million
is for the project construction fund, $112,724.50 for underwriter's discount (.043%), $98,000
for cost of issuance, and rounding of $4,275,50. The debt service schedule was reviewed
including the interest and call date of November 1, 2023, assuming PFA funds are available.
An updated resolution including the final figures was included in the handout tonight.
CM Darkenwald asked if there was any update of the PFA funding. City Administrator/Finance
Director Flaherty has not received any updates, noting the PFA would include the bridge gap
funds and roll into the final amount. Mayor Stockamp asked how many other communities are
seeking these types of funds. Ms. Green said there are many communities using this type of
funding source. CM Darkenwald asked what is different with the resolution in the packet
tonight. Ms. Green noted the premium amount is not included and the references the final par
amount for Huntington Securities, Inc.
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING OCTOBER 11, 2022
CM Darkenwald motioned to approve Resolution 2022mul Providing for the Issuance
and Sale of General Obligation Temporary Sewer Revenue Bonds, Series 2022A,
seconded by CM Moores. Voted in favor; Stockamp, Darkenwald, Moores, and Dahl.
Voted against; none. Motion carried 4-0.
City Administrator/Finance Director Flaherty provided the bond ratings for surrounding
communities.
2. Adjourn.
CM Darkenwald motioned to adjourn at 5:57 PM, seconded by CM Moores. All in
favor. Motion carried 4-0.
ATTEST:
A ra Etzel, City Clerk
Je sica Stockamp, Major
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