Board of Aldermen Meeting Agendas & Minutes

 

Every effort is made to ensure that the Agendas and Minutes provided on this and subsequent pages is timely and correct; however, users should keep in mind that this information is provided only as a public convenience. In any case where legal reliance on information is required, the official records of the City of Ballwin should be consulted.

The Board of Aldermen meet on the second and fourth Mondays of each month at 7 p.m. in the Board Room of the Ballwin Government Center, 1 Government Ctr. Schedule and place subject to change. Meetings are open to the public. All citizens are urged to attend.

Finance and Administration Committee Meeting

Meeting Agenda

MEETING NOTICE

Members of the Ballwin Board of Aldermen will meet for a Finance & Administration Committee Meeting on Monday, January 25, 2016 at 6:00 P.M., prior to the Board Meeting at the Donald “Red” Loehr Police and Court Center at 300 Park Drive. The item to be discussed is in regards to the Olde Town Plaza TDD.

This meeting and all other meetings are open to the public and the building is handicapped accessible.

Meeting Minutes

Finance & Administration Committee Meeting
January 25, 2016 at 6:00 p.m.
300 Park Drive – Donald “Red” Loehr Police and Court Center

The minutes are prepared in summary to reflect the overall discussion – not verbatim quotes.

2002 Tax Revenue Bond

The Committee Meeting was called to order at 6:01 p.m. by Alderman Frank Fleming.
In attendance were Finance & Admin Committee Members: Aldermen Michael Finley, Kevin Roach and Kathy Kerlagon. Additional Board members who attended were Mayor Pogue, Jimmy Terbrock, Mark Stallmann, and Jim Leahy. Also in attendance were City Administrator Eric Hanson, City Attorney Robert Jones, Assistant City Administrator Thomas Aiken, and Finance Officer Denise Keller.

Laura Radcliff, along with her colleagues Peter Czajkowski and Gina Martin from Stifel Nicolaus, went over the Olde Town TIF bond issue. She and her colleagues presented an outline of the Debt Service Reserve Fund balance, historic collections, and information on the outstanding debt service. Laura explained Ballwin’s limited obligation for bond payment and viable options to keep Ballwin’s reputation intact.

By 2018, if revenues continue at their current levels, this becomes the year when there is not enough money coming in from revenue and not enough money in the debt service reserve fund to pay debt service. This is when a payment default would occur. The bonds are scheduled to mature in 2022.

Whenever the City has had to draw from the debt service reserve fund to make debt payments, a notice of material event has to be posted on EMMA, which is the electronic repository for all information regarding municipal borrowings. If the bond issue were to default, the City would have to disclose this fact on all future borrowings. The City’s reputation would be at risk and its credit rating may be indirectly impacted. It is very uncommon to have a bond issue in distress.

Two options were presented to the Committee 1) Do nothing or 2) Refund 2002 Bonds with an annual appropriation backed bond issue along with a tender of the existing bonds at 90 cents to the dollar. Stifel has explored as many as 8 additional options but don’t consider the others to be viable.

Alderman Roach asked what the property owner’s obligation was to the bonds. Laura explained that there is neither any obligation to nor taxes being paid by the owner of the property. These bonds are paid by sales tax revenue.
Alderman Roach asked what is required of the City in order to proceed with a refinance. He was informed that the purpose of this committee meeting was to start this conversation and that further discussion on viable solutions will be done at a later time.

Alderman Fleming adjourned the Finance Committee meeting at 6:56 p.m.

TIM POGUE, MAYOR

ATTEST:
ERIC HANSON, CITY ADMINISTRATOR
Approved: February 8, 2016