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Home My WebLink About1/26/04 City of Farmington 325 Oak Street Farmington, MN 55024 A Proud Past - A Promising Future Committed to Providing High Quality, Timely and Responsive Service to All Of Our Customers AGENDA REGULAR WATER BOARD MEETING Monday, January 26, 2004 12:00 noon Conference Room A 1. Call to Order 2. Approve Agenda 3. Approve Minutes -regular meeting, December 22, 2003 4. Continued Discussion Items 5. New Business a) Water Tower Bonds b) Presentation by T-Mobile c) Well Site Maintenance Option d) Well House #6 Security Lighting 6. Approve Bills 7. Financial Report 8. Open Forum 9. Adjourn . . . City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: Water Board Members FROM: Robin Roland, Finance Director SUBJECT: Financing options for bonds DATE: January 26, 2004 INTRODUCTION The G.O. Water Revenue bonds of 1997 were issued to finance the construction of the water reservoir (tower) at the corner of Pilot Knob and 19Sth Street. These bonds were issued at an interest rate of 5.39% on May 14, 1997. The bonds were callable on December 1, 2002. DISCUSSION Current outstanding balance on the bonds is $1,265,000 plus $379,577 in interest payable until 2014. The opportunity exists to either call these bonds in there entirety - thereby saving $313,566 over the next 11 years or refinancing these bonds at a significantly lower interest rate (refunding) over the remaining term of the bonds. The City did this with a number of bond issues in December, 2003. Staff will present both financing scenarios at the Water Board meeting, along with current cash flow position. ACTION REQUIRED Consider options on the 1997 G.O. Water revenue bonds and direct staff how to proceed. Respectfully submitted, Robin Roland Finance Director Page 1 of 1 ~V\t\ ~ & . Bill Weierke From: Grinstead, Tim L [tgrinstead@bonestroo.com] Sent: Friday, January 16, 2004 2:29 PM To: Westbrook, Chad B; Lee Mann Cc: Rolfs, Mark R; Bill Weierke Subject: RE: Thanks Chad. Can you tell Lee and Bill where they can get it at? I'm not sure if they know where to go? Timothy L. Grinstead Bonestroo, Rosene, Anderlik & Associates 2335 West Highway 36 St. Paul, MN 55113 Phone: (651) 604-4881 Fax: (651) 636-1311 mailto :tgrinstead@Bonestroo.com -----Original Message----- From: Westbrook, Chad B Sent: Friday, January 16, 2004 2:07 PM To: Grinstead, Tim L; 'Lee Mann (Imann@ciJarmington.mn.us)' Cc: Rolfs, Mark R; 'Bill Weierke (bweierke@ciJarmington.mn.us)' Subject: RE: . Here is a fixture that should work. It runs around $150. You can choose 35 watt or 50 watt. -----Original Message----- From: Grinstead, Tim L Sent: Friday, January 16, 2004 10:26 AM To: Lee Mann (Imann@ciJarmington.mn.us) Cc: Rolfs, Mark R; Westbrook, Chad B; Bill Weierke (bweierke@ciJarmington.mn.us) Subject: Lee, I just talked with Chad about the light issue. He says you cannot lower the wattage on the light. You can replace them, but not with lower wattage lamps. So he is looking into finding a couple of lights we can replace it with. The one he gave me earlier is really expensive ($800), so he is going to find some less expensive ones. He will then send you the info with fixture costs and you can decide if you want to replace them. Have a great weekend. . Timothy L. Grinstead Bonestroo, Rosene, Anderlik & Associates 2335 West Highway 36 St. Paul, MN 55113 Phone: (651) 604-4881 Fax: (651) 636-1311 mailto :tgrinstead@Bonestroo.com 01/22/2004 . CITY OF FARMINGTON REVENUES AND EXPENDITURES ANALYSIS WATER FUND 11/30/2003 92% OF THE YEAR COMPLETE 2003 2003 %OF BUDGET ACTUAL BUDGET OPERATING REVENUES USER FEES 810,000 725,750 89.60% WATER PERMITS 25,000 21,510 86.04% METER SALES 115,000 105,137 91.42% TOTAL OPERATING REVENUE 950,000 852,397 89.73% NON OPERATING REVENUES WATER AVAILABILITY CHARGES 200,000 247,113 123.56% WATER MAIN TRUNK FEES 100,000 58,725 58.73% WATER TREATMENT PLANT FEES 100,000 58,766 58.77% SPECIAL ASSESSMENTS 200,000 27,072 13.54% INTEREST 200,000 151,835 75.92% ADMINISTRATIVE FINES 11,875 ANTENNA LEASE 40,000 31,442 78.61% TOTAL NON OPERATING REVENUE 840,000 586,828 69.86% TOTAL ALL REVENUE 1,790,000 1,439,225 80.40% EXPENDITURES SALARIES 109,010 73,658 67.57% OVERTIME 2,310 3,978 172.21% BENEFITS 15,430 11,168 72.38% EQUIPMENT SUPPLIES 141,150 89,426 63.36% . VEHICLE SUPPLIES 2,602 0.00% BUILDING SUPPLIES 167 0.00% OTHER SUPPLIES 5,000 16,596 331.93% CHEMICALS 55,000 78,246 142.27% FUEL 4,440 3,544 79.82% PROFESSIONAL SERVICES 69,570 60,731 87.29% LEGAL 2,190 0.00% COMMUNICATIONS 5,300 5,387 101.64% MUNICIPAL SERVICES 1,300 2,665 205.00% ELECTRIC 51,500 69,770 135.48% GAS 1,320 7,120 539.39% INSURANCE 13,430 15,061 112.14% POSTAGE 4,000 5,674 141.85% OUTSIDE PRINTING 7,500 8,780 117.07% LEGAL NOTICES 1,200 723 60.25% DUES & SUBSCRIPTIONS 3,500 2,991 85.46% SCHOOLS & CONFERENCES 1,100 605 55.00% EQUIPMENT MAINT 21,650 2,620 12.10% VEHICLE MAINT 7,150 2,063 28.85% EQUIPMENT RENTAL 473 0.00% TOTAL EXPENDITURES 523,050 464,048 88.72% OTHER FINANCING USES DEBT SERVICE 207,626 36,313 CONSTRUCTION 295,500 11,949 CONSTRUCTION (Wells 6 & 7) 367,449 MISCELLANEOUS 843 TRANSFER FOR NEW FACILITY 33,327 30,400 TRANSFER FOR ADMINISTRATIVE FEES 45,000 41 ,400 TOTAL OTHER FINANCING USES 581,453 488,354 TOTAL EXPENDITURES & OTHER . FINANCING USES 1,104,503 952,402 INCREASE (DECREASE) TO RETAINED EARNINGS 685,497 486,823