>> GOOD AFTERNOON. AND WELCOME TO THE MAY 14, 2025, MEETING, REGULAR MEETING OF THE BOARD OF ESTIMATE AND TAXATION. MAY NAME IS STEVE BRANDT AND I'M THE PRESIDENT OF THE BOARD. BEFORE WE BEGIN THE MEETING, I
WOULD ASK THE CLERK TO OFFER A REMINDER TO THE PUBLIC AND ANYONE ELSE PARTICIPATING ORALLY IN THIS BROADCAST. >> I WANT TO OFFER A FRIENDLY REMINDER TO ALL MEMBERS, STAFF, AND THE PUBLIC THAT THESE MEETINGS ARE BROADCAST LIVE TO ENABLE GREATER PUBLIC
PARTICIPATION. THESE BROADCASTS INCLUDE REAL-TIME CAPTIONING AS A FURTHER METHOD TO INCREASE THE ACCESSIBILITY OF OUR PROCEEDINGS TO THE COMMUNITY. THEREFORE, ALL SPEAKERS NEED TO BE MINDFUL OF THE RATE OF THEIR SPEECH SO THAT OUR CAPTIONER CANS FULLY CAPTURE AND
TRANSCRIBE ALL COMMENTS FOR THE BROADCAST. WE ASK ALL SPEAKERS TO MODERATE THE SPEED AND CLARITY OF THEIR COMMENTS. >> AT THIS TIME I'LL ASK THE CLERK TO CALL THE ROLL SO WE CAN VERIFY THE PRESENCE OF A QUORUM. >> MEMBER FREY, HERE.
>> ABENE, HERE. >> PAYNE IS ABSENT. >> CHUGHTAI, PRESENT. >> VICE PRESIDENT PREE-STINSON, PRESENT. >> PRESIDENT BRANDT, PRESENT. >> THERE ARE FIVE MEMBERS PRESENT. >> LET THE RECORD SHOW THAT WE HAVE A QUORUM. I WILL NOW OFFER AN ACKNOWLEDGMENT THAT WE MEET
TODAY ON THE LAND OF THE DAKOTA. WE'LL PROCEED TO THE AGENDA, A COPY OF WHICH WAS POSTED FOR PUBLIC ACCESS AT THE CITY'S LEGISLATIVE INFORMATION MANAGEMENT SYSTEM, WHICH IS AVAILABLE AT LIMS.MINNEAPOLIS
MN.GOV. BOARD MEMBERS, THE AGENDA FOR TODAY'S MEETING IS BEFORE US. MAY I HAVE A MOTION TO ADOPT THE AGENDA? >> SO MOVED. >> IS THERE A SECOND? >> SECOND. >> OKAY. ANY DISCUSSION? SEEING NONE, ALL THOSE IN FAVOR SAY AYE. OPPOSED SAY NAY. THE AYE'S HAVE IT AND THE AGENDA
IS ADOPTED. NEXT IS THE ACCEPTANCE OF MINUTE FROM OUR APRIL 23 MEETING. MAY I PLEASE HAVE A MOTION TO ACCEPT THE MINUTES? >> SO MOVED. >> SECOND. >> OKAY. WE HAVE A PROPER MOTION BEFORE US. ANY DISCUSSION?
ALL THOSE IN FAVOR PLEASE SAY AYE. THOSE OPPOSED, SAY NAY. THE AYE'S HAVE IT AND THE MINUTES ARE ADOPTED AS PRESENTED. ITEM FOUR IS THE ACCEPTANCE ON THE AGENDA TODAY IS THE ACCEPTANCE OF PUBLIC COMMENT. THE CLERK INFORMS ME THAT WE
HAVE NOBODY SIGNED UP TO SPEAK TODAY. SO WE'LL CONTINUE ON TO THE NEXT ITEM ON OUR AGENDA, WITH JUST A REMINDER THAT MEMBERS OF THE PUBLIC ARE ABLE TO TAKE ADVANTAGE OF THE OPPORTUNITY TO SPEAK TO THE BOARD OF ESTIMATE
AND TAXATION ON AN ITEM THAT IS ON THAT DAY'S AGENDA FOR UP TO TWO MINUTES. AND I WOULD ENCOURAGE PEOPLE TO TAKE -- WE ENCOURAGE YOUR PUBLIC TO TAKE ADVANTAGE OF THAT. ITEM FIVE IS RECEIVING A DEBT
PRESENTATION -- OH, I WILL ASK THE CLERK TO -- I GUESS I WOULD ASK THE CLERK TO RECEIVE AND FILE THE COMMENTS, BUT WE HAVE NO COMMENTS. ITEM FIVE ON THE AGENDA IS RECEIVING A DEBT PRESENTATION FROM THE DIRECTOR OF BANKING, INVESTMENTS AND DEBT DAVID
WHEELER, SENIOR MANAGER, WILL PRESENT THE ANNUAL LIST OF NOT YET BONDED AMOUNTS OF CURRENTLY AUTHORIZED CAPITAL PROJECTS. KID
>> GOOD AFTERNOON, PRESIDENT BRANDT, GIVING THE PRESENTATION ON BEHALF OF OUR DIRECTOR AND OUR DIVISION. I WILL PRESENT OUR ANNUAL SUMMARY OF THE CITY INDEBTEDNESS AS WELL AS PRESENT THE CURRENTLY OUTSTANDING BONDING AUTHORIZATIONS FOR CITY PROJECTS. AND THEN BRIEFLY AT THE END JUST
TOUCH ON KIND OF SOME PRELIMINARY PREVIEW OF THE CITY'S 2025 VARIOUS PURPOSE BOND ISSUE. WE WILL EXPECT TO COME BACK IN JUNE FOR THE FORMAL AUTHORIZING AND AWARDING RESOLUTIONS FOR THE BET TO CONTINUE ON IN THE BOND
ISSUANCE PROCESS. AND TO START WITH, I WANT TO JUST TOUCH ON SOME GOOD NEWS. IT'S NOT NEW TO ANYONE, BUT I THINK BEARS REPEATING THE CITY'S BOND RATINGS, WE CURRENTLY OWN THREE TRIPLE A RATINGS FROM THE NATIONAL CREDIT RATING AGENCIES.
STANDARD & POOR'S AND FITCH HAVE MAINTAINED TRIPLE A RATINGS FOR THE CITY FOR THE PAST FEW YEARS AND AT THE END OF 2025 AS PART OF THE ANNUAL SURVEILLANCE RATING, MOODY'S INVESTOR SERVICE UPGRADED THE CITY TO TRIPLE A.
SO AS THE MAYOR NOTED LAST WEEK IN THE STATE OF THE CITY ADDRESS, WE EXPECT ONE OF ABOUT 20, MAYBE 30 CITIES IN THE ENTIRE NATION TO HAVE THREE AAA BOND RATINGS. I THINK A RECOGNITION OF THE CITY'S FINANCIAL MANAGEMENT,
LEADERSHIP AND GOVERNANCE AND THE CONFIDENCE FROM THE MARKET THAT WILL MEET OUR OBLIGATIONS AND PAY OUR DEBT SERVICE. AND JUST A GOOD RECOGNITION, SO WANTED TO, AGAIN, POINT THAT OUT.
AT THE END OF 2024, THE CITY HAD $843 MILLION IN DEBT OUTSTANDING. MOST OF THAT COMES IN THE FORM OF OUR TAX SUPPORTED OR LEVY FUNDED DEBT, $325 MILLION. NEAR THAT AMOUNT IS THE
ENTERPRISE FUNDED DEBT THAT IS BONDS PAYABLE BY THE ENTERPRISE FUNDS, FUNDING THE INFRASTRUCTURE AND CAPITAL PROJECTS FOR SEWER, STORM WATER AND WATER UTILITIES. THOSE DEBTS ARE PAID BACK FROM REVENUES WITH PLEDGED REVENUES OF THE PAID DEBT SERVICE.
WE DO HAVE OUR GENERAL OBLIGATION PLEDGE ON THOSE. IF REVENUE IS EVER INSUFFICIENT TO PAY DEBT SERVICE, WE WOULD LEVY TAXES, BUT TO MY KNOWLEDGE
WE HAVE NEVER HAD TO DO THAT. AND THE ADEQUATE REVENUE RATIOS TO PAY THE DEBT SERVICE. AND THE REMAINING PURPOSE AND DEBT TYPES, AND WE HAVE FAIRLY SMALLER AMOUNTS RELATIVE -- I WILL JUST NOTE THE PARK BOARD
UNDER $5 MILLION IN DEBT OUTSTANDING AT THE END OF LAST YEAR. AND SPECIFICALLY THE CONVENTION CENTER WAS THE $26 MILLION AND REFUNDING ISSUE IN 2020. THAT WHOLE AMOUNT IS DUE ON DECEMBER 1 OF THIS YEAR, SO WE'LL RETIRE THAT ENTIRE ISSUE
OUTSTANDING. >> JUST A LOOK AT THE HISTORY OF THE OUTSTANDING DEAD GOING BACK A DECADE. AND STARTING ON THE FAR LEFT THIS, PAST YEAR, RELATIVELY CONSISTENT, NOMINAL INCREASES
YEAR OVER YEAR ALONG WITH THE CAPITAL PLANNING. WE'VE KIND OF PROGRESSED ACCORDING TO OUR EXPECTATIONS, AND I WILL JUST NOTE ON AN INFLATION ADJUSTED BASIS WE ARE AT OR BELOW OUR PAST BALANCES.
SO VERY CONSISTENT DEBT LOAD. AND THEN A LOOK AT THE CITY'S DEBT CAPACITY. THIS IS A STATUTORY DEBT LIMIT THAT IS SET FORTH IN STATE STATUTES. IT SETS A DEBT LIMIT OF TAX
SUPPORTED DEBT THAT THE CITIES CAN ISSUE, APPLICABLE TO UALL CITIES IN THE STATE. MOSTLY IT IS 3% OF THE TAXABLE MARKET VALUE. FOR CITIES AS MINNEAPOLIS-ST. PAUL, CITIES OF THE FIRST CLASS,
THE LIMIT IS SET AT 3 2/3 OF THE TAXABLE MARKET VALUE. OUR LEGAL DEBT LIMIT IS $2.5 BILLION. WE DON'T HAVE ANYWHERE NEAR THAT OUTSTANDING OBVIOUSLY AND AT MID YEAR END WE HAD DEBT OUTSTANDING THAT WAS APPLICABLE TO THIS LIMIT.
AGAIN, PRIMARILY LEVY FUNDED DEBT OF $313 MILLION, SO ABOUT A 12.6% USAGE OF THAT DEBT LIMIT.
AND THEN JUST FOR REFERENCE, AND PRESENTED AND UPDATED AGAIN FOR THIS YEAR, A PICTURE OF THE DEBT LIMIT UTILIZATION THROUGHOUT NEIGHBORING COMMUNITIES. THESE ARE THE LARGEST 15 CITY ISSUERS IN THE STATE. AND IT'S A BUSY GRAPH, BUT WHAT
IS PRESENTED HERE IS EACH CITY'S DEBT LIMIT AS WELL AS ON THE GREEN DOT THAT PERCENTAGE OF DEBT OUTSTANDING THAT IS APPLICABLE TO THAT LIMIT, SO I THINK FIRST AND FOREMOST WHAT JUMPS OUT IS THE MAGNITUDE OF
OUR LIMIT COMPARATIVELY OF OTHER ISSUERS AROUND. I'LL NOTE THAT ORANGE DOTTED LINE IS THE INSURER OF THE 11% IS THE AVERAGE USAGE OF ISSUERS AND RIGHT IN LINE WITH THAT.
A HAIR ABOVE AND VERSUS 11% FOR MOST OF THE ISSUERS. >> AND THEN THIS IS A LOOK, AGAIN, THAT DEBT LIMIT WAS A LIMIT AGAINST THE TAXABLE MARKET VALUE IN THE CITY.
THIS IS A LOOK AT THE OUTSTANDING TAX SUPPORTING DEBT THE CITY HAS AS COMPARED TO THE TAX CAPACITY. PRESIDENT BRANDT, I THINK YOU HAD ASKED ABOUT A DATA POINT LIKE THIS LAST YEAR, SO WE INCLUDED AGAIN AN INTERESTING LOOK JUST TO SEE AND THE
DIFFERENCE HERE IS THIS IS JUST THE TAX CAPACITY, SO THE RATIO LOOKS HIGHER AT 40% OF THE TAX CAPACITY IN GREEN IS THE APPLICABLE DEBT, TAX SUPPORTED LEVY FUNDED DEBT, BLUE IS THE TREND OF OUR TAX CAPACITY.
AGAIN, TRENDING UP NOMINALLY UP EACH YEAR. WE ARE UP AROUND 40% AS WE SEE THE TAX CAPACITY OFF PEAK VALUES IN 2023, SO TICKING UP A LITTLE. BUT THE OTHER THING I'LL NOTE IS THAT IS ALL OF THE TAX SUPPORTED DEBT OUTSTANDING.
AND THIS IS ESSENTIALLY SAYING TAX CAPACITY THIS YEAR AND THAT IS THE ENTIRE DEBT OUTSTANDING AND IN REALITY, WE LEVY ABOUT $5 # A MILLION FOR DEBT SERVICE THIS -- LEVY ABOUT $55 MILLION FOR DEBT SERVICE AND EQUATES TO
7% OF THE TAX CAPACITY VALUE. >> SO THOSE ARE JUST KIND OF THE SOME OF THE HIGHLIGHTS THE CITY INDEBTEDNESS AT YEAR END AND TAKE ANY QUESTIONS ON THAT AND I ALSO WANTED TO PRESENT TO THE
BOARD THE CURRENT LIST OF OUTSTANDING BONDING AUTHORIZATIONS AND THIS IS A SUMMARY PAGE AND YOU SHOULD HAVE THE EXHIBIT IN THE MEETING PACT PACKETS AS WELL.
I APOLOGIZE FOR THE READABILITY OF THE DATA LEVELS AND YOU CAN REFER TO YOUR PACKETS HOPEFULLY FOR ANY SPECIFIC PROJECT QUESTIONS. THESE ARE THE AUTHORIZATIONS APPROVED BY COUNCIL. WE ARE CARRYING OVER $142
MILLION FROM PRIOR YEARS THAT IS BONDING AUTHORIZATIONS THAT WEREN'T USED FOR VARIOUS REASONS. 81 MILLION IN UTILITY ENTERPRISE BONDS AND $60 MILLION OF LEVY FUNDED BONDS. IN THE END OF 2024 AS A PART OF THE BUDGET RESOLUTIONS, COUNCIL
APPROVED $58 MILLION OF ENTERPRISE BONDS. AND $102 MILLION IN LEVY FUNDED DEBT AND $9 MILLION OF ASSESSMENT BONDS FOR TOTAL OF $313 MILLION IN AUTHORIZATIONS OUTSTANDING. AGAIN, THAT IS BONDS YET TO BE ISSUED.
WE DON'T OBVIOUSLY ISSUE ALL OF THAT EVERY SINGLE YEAR DEPENDING ON WHAT PROJECTS ARE READY TO BE FUNDED. BUT THIS IS A FAIRLY TYPICAL BALANCE THAT WE CARRY IN OUTSTANDING AUTHORIZATIONS. >> MR. WHEELER, IF I COULD
INTERRUPT FOR A MINUTE, WHILE WE ARE ON THIS PAGE, IT LOOKS LIKE THE RATIO BETWEEN ENTERPRISE AND LEVY FUNDED IS QUITE A BIT DIFFERENT IN THE AUTHORIZED 2025 AS OPPOSED TO THE PRIOR AUTHORIZATION. AND I WONDERED IF THERE'S A
FACTOR OR SERIES OF FACTORS THAT HAVE CONTRIBUTED TO THAT. AND MORE ENTERPRISE BONDS THAN LEVY FUNDED IN THE PREVIOUS YEARS, AND NOW IN 2025 WE, IN WHAT'S AUTHORIZED TO BE ISSUED, WE HAVE MUCH MORE IN LEVY FUNDED.
>> YEAH, PRESIDENT BRANDT, SO A LOT OF IT IS JUST PROJECTS SET FOR VARIOUS REASONS HAVE NOT NEEDED OR BEEN READY TO ISSUE BONDS AS FAR AS PROJECT CONSTRUCTION COSTS NOT EXPECTED OR NOT USED. THE 2025 RATIO IS A PRETTY
TYPICAL RATIO. WE PRETTY TYPICALLY WILL SEE A HIGHER BALANCE OF LEVY FUNDED BONDS APPROVED, AUTHORIZATIONS APPROVED. THERE'S JUST BEEN FOR VARIOUS REASONS ENTERPRISE PROJECTS THAT HAVE NOT NEEDED OR BEEN ABLE TO ISSUE THEIR BONDS.
SO THAT'S AN ACCUMULATION GOING BACK SEVERAL YEARS OF AUTHORIZATIONS NOT UTILIZED OR NOT ISSUED ON. >> AND WOULD THAT BE MAINLY RELATED, FOR EXAMPLE, ONE THATMENT COS TO MIND IS THE -- ONE THAT COMES TO MIND WERE THE PROJECTS THAT WERE SLATED IN THE
ROOF DEPOT SITE AS PART OF THE PUBLIC WORKS COMPLEX. BUT THE CITY APPARENTLY IS MOVING IN A DIFFERENT DIRECTION. I ASSUME THOSE WOULD BE FUNDED BY ENTERPRISE REVENUES PRIMARILY? >> YES, PRESIDENT BRANDT, THAT IS ONE OF THE PROJECTS THAT DOES HAVE AN ACCUMULATION.
WE'VE NOT ISSUED BONDS ON THAT PROJECT IN QUITE A WHILE. SO THEY DO HAVE A NUMBER OF OUTSTANDING AUTHORIZATIONS. >> OKAY. THANK YOU VERY MUCH. AND I WOULD LIKE TO CLERK TO NOTE THAT COMMISSIONER PAYNE IS IN THE MEETING.
GO AHEAD. >> SURE. AND I HAVE INCLUDED THE TABLE AND THE SLIDE. I WILL SKIP THROUGH. IF ANYONE HAS ANY SPECIFIC QUESTIONS ON ANY OF THE AUTHORIZATIONS, HAPPY TO TAKE THOSE NOW.
>> ARE THERE QUESTIONS ON THE AUTHORIZATIONS? COMMISSIONER ABENE. >> YES. AND NOW I CAN'T -- YOU'RE RIGHT. YOU PROMISED ME THAT I WOULDN'T BE ABLE TO SEE IT AND I CAN'T. AND I ALSO DID LOOK AT IT BRIEFLY, BUT WE JUST GOT THE
TABLES TODAY AS FAR AS I KNOW. BUT THERE WAS ONE IN THERE AND I'M JUST A NERD FOR PV001, WHICH IS TOWARD THE END. IT IS PAVING OR STREETS PROJECT AND IT IS $700,000. THE FIRST ONE THERE I CAN ALMOST ACTUALLY MAKE IT OUT. AND READING THE BOTTOM LEVEL OF
THE EYE CHART RIGHT NOW, BUT DO YOU KNOW WHAT YEAR THAT WOULD BE? THAT WOULD HAVE BEEN AUTHORIZED? >> COMMISSIONER ABENE, PV001 FOR $706,000 WAS APPROVED AT THE END
OF 2024. 2025 BUDGET. >> THESE WERE ONLY THE 2025 ONES IN THESE TABLES? >> THESE TABLES INCLUDE ANYTHING OUTSTANDING. >> OKAY. THIS SHOULD, AGAIN, I APOLOGIZE, HARD TO READ. WE DO REFERENCE THE RESOLUTION
AND DATE AND PROJECT AND CODE IN THERE. >> MAY I ASK A FOLLOW-UP QUESTION? >> CERTAINLY. >> THE PV001, AGAIN, THERE'S ONE OF THE THINGS THAT I'M REALLY KEENLY INTERESTED IN IN THE CITY'S OVERALL BUDGET, BUT THAT WAS INCREASED.
BUZZ HISTORICALLY $700,000 OR $750, AND IT WAS INCREASED, YOU KNOW, IN THE LAST COUPLE OF YEARS. SO WAS THIS THE TOTAL AUTHORIZATION FOR THAT LINE ITEM OR THE REMAINING AUTHORIZATION FOR THAT LINE ITEM? >> COMMISSIONER ABENE, THESE REPRESENT JUST THE TOTAL FOR
EACH LINE ITEM. SO $706,000 WAS APPROVED IN RESOLUTION 2024, R-445. SO I CAN'T SPEAK TO THE OUTSTANDING BALANCE.
I BELIEVE ANYTHING THAT HAD BEEN PREVIOUSLY AUTHORIZED HAS PROBABLY BEEN ISSUED, BUT I WOULD DEFER TO PUBLIC WORKS AND CAN ANSWER THAT AFTER THE MEETING. >> I APPRECIATE THAT. THANK YOU. >> I'D LIKE TO HOP ON THAT
QUESTION BECAUSE PUTTING ON MY OLD CLICK HAT, IT SEEMS TO ME WE RECOMMENDED AN INCREASE IN FUNDING FOR PARKWAY PAVING, AND AS I RECALL, MAYOR, AT ONE POINT A YEAR OR TWO AGO, YOU HAD RECOMMENDED AN INCREASE ABOUT 26
OR 27. IS THAT STILL SNT HOPPER OR HAS THE COUNCIL TAKEN ACTION TO UNDO THAT? IS THAT STILL IN THE HOPPER OR HAS THE COUNCIL TAKEN ACTION TO UNDO THAT? >> I'M GOING TO JUMP IN THERE. THERE IS A DIFFERENT AMOUNT, I BELIEVE, FOR PV001 AND I DON'T
REMEMBER THE YEAR THAT IT WAS FIRST PLANNED TO INCREASE, BUT I BELIEVE IT WOULD HAVE BEEN 2024. AND BY 27 IT WAS SUPPOSED TO BE $2.7 MILLION. I KNOW THE CITY WAS LOOKING AT $3 MILLION BECAUSE OF THE CONDITION OF THE PARKWAYS AND THE REQUIREMENT THEY HAVE
EQUIVALENT CONDITION TO ON AVERAGE CITY STREETS. AND THERE IS A JOINT POWERS AGREEMENT ABOUT THIS. SO YEAH. AND THAT CAN'T BE CHANGED. I WILL JUST DO A LITTLE LOOKING AND THIS WOULD BE THE KIND OF THING WHERE I MIGHT EMAIL QUESTIONS AHEAD OF TIME ON
SOMETHING LIKE THIS. OKAY, THANK YOU. >> COMMISSIONER FREY? >> THAT AGREEMENT IS, OF COURSE, PERIODICALLY RENEGOTIATED, AND MOST RECENTLY THE NUMBER WENT UP. I COULDN'T TELL YOU BY EXACTLY HOW MUCH BUT THAT RENEGOTIATION WOULD HAPPEN AGAIN, I BELIEVE,
LATE THIS YEAR, EARLY NEXT. >> THANK YOU, COMMISSIONER FREY. ARE YOU SAYING THAT BASICALLY THE ACCELERATION THAT I RECALL AND COMMISSIONER ABENE WAS REFERRING TO IS STILL IN THE PIPELINE? >> I BELIEVE SO.
I DON'T HAVE ANY REASON TO SUSPECT OTHERWISE. >> THANK YOU. >> ANY OTHER QUESTIONS ON THIS PARTICULAR SECTION? >> PROCEED PLEASE. >> AGAIN, HERE IS JUST THE
SUMMARY OF OUR CURRENTLY OUTSTANDING AUTHORIZATIONS. AND WHAT WE DO WITHIN THE CITY FOR EACH YEAR FOR THE BONDING WE TAKE THE AUTHORIZATIONS AND DISBURSE THEM TO THE DEPARTMENTS TO GET THEIR PLANNED SPENDING AND BONDING FOR THIS YEAR.
AND SO I WANTED TO MENTION JUST BRIEFLY WE ARE IN THE MIDST OF WORKING ON THE 2025 VARIOUS PURPOSE BOND ISSUE. AND AS I MENTION, WE WILL COME BACK NEXT MONTH AND THE NEXT MEETING ON JUNE 11 WITH PLANNED
AWARDING AND AUTHORIZATION RESOLUTIONS, BUT RIGHT NOW OUR INITIAL INDICATIONS ARE REQUESTS OF BOND PROCEEDS OF ABOUT $135 MILLION. AGAIN, PRETTY TYPICAL OVER THE LAST FEW YEARS. WE'VE BEEN AROUND $120 TO $130
MILLION IN BOND PROCEEDS REQUESTED FOR EACH BOND SALE. AND $85 MILLION FOR LEVY FUNDED DEBT. $41 FOR ENTERPRISE AND 8.5 FOR ASSESSMENTS. THAT MIGHT CHANGE AS WE MOVE ALONG, BUT THOSE ARE PRELIMINARY INDICATIONS.
FURTHER DETAILS AND CAN GO A LITTLE MORE IN-DEPTH NEXT MONTH. >> OKAY. >> AND FINALLY AS A POINT OF REFERENCE, WE WANTED TO POINT OUT JUST WHERE THE MARKET IS RIGHT NOW.
>> THIS GRAPH, AND ANOTHER APOLOGY. IT IS HARD TO READ, BUT WORKING OUT OF BLOOMBERG, THESE ARE THE AAA TAX EXEMPT RATES FOR MINNESOTA ISSUES. WE SHOWED THIS LAST YEAR AS WELL. EACH LINE CORRESPONDS TO THE LAST TIME WE SOLD BONDS.
STARTING AT THE BOTTOM IN 2021 AND YOU CAN SEE WHAT THE YIELD CURVE WAS LIKE ON THE DAY WE SOLD BONDS. SO 2021 OBVIOUSLY A LOT LOWER. AND 2023 IS THE GREEN LINE QUITE A BIT HIGHER. AND THEN 2024 AND 22 AFTER THAT.
AND THE BLUE LINE AT THE TOP REPRESENTS THE CURRENT MARKET IN 2025, SO AGAIN, NOTICEABLY HIGHER AND THERE IS UNCERTAINTY AND VOLATILITY IN THE MARKET RIGHT NOW. WE HAVE SEEN RATES INCREASE, SO JUST SETTING EXPECTATIONS AND JUST FOR YOUR REFERENCE, THE
MARKET IS UP. YIELDS ARE A LITTLE HIGHER. SO WE DO EXPECT INCREASE IN INTEREST COSTS FOR THE FORESEEABLE FUTURE. AND THAT IS EVERYTHING I WANTED TO COVER TODAY. I CAN STAND FOR ANY OTHER
QUESTIONS YOU MIGHT HAVE. >> DO THE MEMBERS HAVE ANY QUESTIONS PLEASE? >> COMMISSIONER ABENE. >> THANK YOU, PRESIDENT BRANDT. I'M SORRY, I THINK SOMETHING OCCURRED TO ME ABOUT PV001 AND I HATE TO SOUND LIKE SUCH A NERD
ON PV001, BUT IT MAY BE THE CITY HAS ITS DISCRETION TO CHOOSE FUNDING SOURCES FOR THAT LINE ITEM. AND SO MAYBE THERE'S ONLY A PORTION OF IT THAT'S FROM BONDING, AND THE REMAINEDER IS COMING FROM ANOTHER SOURCE. I BELIEVE THAT MIGHT ACTUALLY BE WHAT IS OCCURRING.
>> YEAH, JUST TO FOLLOW ONTO THAT, WHAT WE REPRESENT HERE IS EXPLICITLY BONDING AUTHORIZATIONS. >> YES, YES. >> IF THERE IS OTHER REVENUES, THEY WOULDN'T BE INCLUDED HERE. THIS IS STRAIGHT FROM RESOLUTIONS FROM COUNCIL. >> YEAH, THANK YOU. THANK YOU. >> THANK YOU FOR THE
PRESENTATION. ARE THERE OTHER QUESTIONS? I WOULD JUST LIKE TO ADD MY CONGRATULATIONS TO THE FINANCE STAFF FOR THE WORK IT HAS DONE IN CONNECTION WITH THE TRIPLE TRIPLE A. I REALIZE A LOT OF PLAYERS WERE
INVOLVED, BUT YOU FOLKS ARE THE ONES IN THE TRENCHES AND I APPRECIATE YOUR WORK AND THE ADVISORY TO THE POLICY MAKERS AND THE DECISION OF THE POLICY MAKERS, PARTICULARLY THOSE ON THE COUNCIL AND THE MAYOR WHO MAKE THE SPENDING DECISIONS. WE HERE JUST SET THE LEVY LIMIT,
BUT WE TRY TO ENCOURAGE THE SORT OF POLICIES THAT LEAD TO OUTCOMES LIKE THIS. I WISH I COULD TAKE CREDIT FOR IT, BUT I CAN'T. SO THANK YOU VERY MUCH FOR THAT. AND SO WHAT YOU'RE TELLING US IS THAT WE SHOULD EXPECT SOMEWHAT HIGHER INTEREST RATES IN OUR NEXT SALE THAN WE PAID A YEAR
AGO, UNLESS THERE'S -- >> YES, RELATIVE TO 2024, YES. OF COURSE, THERE'S STILL SOME TIME. MARKETS CAN MOVE. BUT OVERALL, YEAH, YIELDS ARE UP. INTEREST COSTS ARE UP. >> OKAY. >> AND WHEN THE CONVENTION CENTER, I BELIEVE IT IS THE
EXPANSION S PAID OFF IN DECEMBER, I BELIEVE I'VE READ IN THE QUARTERLY BUDGET REPORTS THAT THE CONVENTION SENTER IS GEARING UP FOR REQUEST THAT
WOULD ADD ADDITIONAL CAPITAL SPENDING BONDING TO SUPPORT ADDITIONAL MODERNIZATION OF THAT FACILITY. DO YOU HAVE ANY IDEA WHAT THE SCALE OF THAT WILL BE COMPARED TO THE $26 MILLION PAYMENT, WHICH THAT WAS A BALLOON, WASN'T
IT? THAT $26 MILLION. >> PRESIDENT BRANDT, YES, THAT WAS -- WE REFUNDED THE ISSUE AT THE TIME IN 2020. IT WAS OPTIONALLY REDEEMABLE STARTING IN 2022, BUT YES, IT WAS SET TO MATURE ALL AT ONCE IN 2025 AND THE FULL 2026 MILLION
WAS THE WHOLE ISSUE. AND AS TO OTHER CAPITAL IMPROVEMENTS, FINANCING AND BONDING, I'M NOT AWARE OF ANYTHING. I HAVEN'T BEEN INCLUDED SO I WON'T COMMENT ON THAT. >> AND I'M WONDERING ONE THING I
WAS INTERESTED IN IS WHAT THE RATIO IS BETWEEN PAY AS YOU GO FUNDING AND BONDING AND THAT MAY BE A LITTLE BIT OUTSIDE OF YOUR DOMAIN, BUT HAS THERE BEEN ANY NOTABLE CHANGES IN THAT? I KNOW THE CITY HAS HAD A PHILOSOPHY IN
THAT REGARD FOR A NUMBER OF YEARS. >> PRESIDENT BRANDT, I WOULD PREFER TO FOLLOW-UP AFTER THE MEETING, BUT WE DO THE VERSION OF BOTH. CERTAINLY SOME PROJECTS ARE PAID
FOR AND THEN REIMBURSED WITH BONDING. SOME PROJECTS ARE BONDED FOR AT THE OUTSET. AND IT IS KIND OF I BELIEVE A VERY PROJECT SPECIFIC CASES, BUT PROBABLY TAKE THAT AWAY AND GIVE
YOU MORE THOUGHTFUL ANSWER. >> GENERALLY, BECAUSE I KNOW YOU DIDN'T COME PREPARED FOR THAT SORT OF A QUESTION, BUT IS THE PAY AS YO GO HIGHER IN THE ENTERPRISE FUNDS BECAUSE OF THE
ACCUMULATION OF REVENUE IN THE VARIOUS WATER, SEWER, AND OTHER UTILITY AREAS LIKE SOLID WASTE? >> THAT IS SOMETHING I WOULD PROBABLY TAKE AWAY AND DEFER TO ENTERPRISE FUNDS FOR, I THINK, A
CONFIDENT ANSWER. >> OKAY. AND THE LAST QUESTION I HAVE, I'M NOT SURE -- I MEAN, WE ALL IN MINNESOTA OPERATE GENERALLY UNDER THE SAME SET OF DEBT
LIMITS, SO TO THAT EXTENT, THE CHART COMPARING US TO OTHER MINNESOTA CITYS IS HELPFUL, BUT DO YOU HAPPEN TO HAVE ANYTHING IN YOUR FILES OR OFF THE SHELF IN TERMS OF COMPARING US WITH, SAY, SELECTED OTHER NORTHERN
CITIES BECAUSE OF THE CHALLENGES OF OUR CLIMATE FOR SOME OF OUR INFRASTRUCTURE, I WOULD FIND THAT PROBABLY A CITY OF COMPARABLE SIZE. >> PRESIDENT BRANDT, AT THE MOMENT WE DON'T HAVE ANYTHING OFF THE SHELF.
CERTAINLY SOMETHING THAT WE CAN DO. THE INTERESTING ANALYSIS AND YEAH, WE'RE WORKING TO KIND OF BUILD OUT OUR COMPARATIVE DATABASE OF REPORTING AND ANALYTICS. SO WE STARTED WITH THE LOCAL MINNESOTA CITIES, BUT YEAH, PRETTY EASY COMPARISON AND
ANALYSIS TO DO FOR YOU. >> OKAY. >> I GUESS I ASK THAT QUESTION JUST BECAUSE WE ARE THE -- WE ARE THE REGIONAL CENTER FOR THE TWIN CITIES, AND THEREFORE, WE
HAVE A LOT OF CAPACITY BUILT IN TO VARIOUS UTILITIES SET AND OUR OTHER SERVICES THAT MAY BE A SMALLER CITY WOULD NOT BE REQUIRED TO PROVIDE, BUT THAT'S JUST AN OBSERVATION, AND I THANK YOU FOR YOUR PRESENTATION. AND IF THERE ARE NO FURTHER
QUESTIONS, I WILL ASK THE CLERK TO RECEIVE AND FILE AND THANK YOU VERY MUCH FOR THE PRESENTATION. >> OKAY. ITEM NUMBER SIX ON OUR AGENDA IS
A RESOLUTION ASKING THE BOARD TO APPROVE THE HIRING OF CHRISTINA KEIDERLING TO THE POSITION OF B.E.T. EXECUTIVE SECRETARY. MS. KEIDERLING IS IN THE ROOM
TODAY, AND I AM SURE GLAD TO STAND A FEW QUESTIONS. BUT I WOULD ASK HER TO SAY A FEW WORDS IF WE ACT FAVORABLY ON THE HIRING. I THINK I WOULD LIKE TO ASK EVEN THOUGH IT GOT ON THE AGENDA RELATIVELY LATE, AND I WONDERED IF THE CLERKS COULD READ THE RESOLUTION FOR THE BENEFIT OF
THE PUBLIC. >> RESOLUTION 2025-003, BOARD OF ESTIMATE AND TAXATION AUTHORIZING THE PRESIDENT OF THE BOARD OF ESTIMATE AND TAXATION
TO ENTER INTO AN EMPLOYMENT AGREEMENT WITH CHRISTINA KEIDERLING FOR THE POSITION OF EXECUTIVE SECRETARY SENIOR ADVISOR. WHEREAS, PURSUANT TO SECTION 5.2 OF THE CITY CHARTER, THE MINNEAPOLIS BOARD OF ESTIMATE
AND TAXATION OR THE BOARD IS PERMITTED TO EMPLOY AN EXECUTIVE SECRETARY IN THE UNCLASSIFIED SERVICE. AND, WHEREAS, ON FEBRUARY 8, 2024, THE BOARD APPROVED RESOLUTION 2024-002, WHICH
CREATED A SEARCH COMMITTEE, THE SEARCH COMMITTEE, TO DEVELOP A JOB POSTING AND COMMENCE A SEARCH FOR AN EXECUTIVE SECRETARY. AND WHEREAS, ON DECEMBER 11, 2024, THE BOARD APPROVED A RESOLUTION AUTHORIZING THE SEARCH COMMITTEE TO CREATE A JOB
POSTING FOR THE POSITION OF EXECUTIVE SECRETARY, WHICH WAS POSTED UNDER THE TITLE OF SENIOR ADVISOR. AND WHEREAS, PURSUANT TO THE RESOLUTION T BOARD SEARCH COMMITTEE UNDERTOOK A SEARCH AND SELECTED A PREFERRED CANDIDATE
FOR THE POSITION OF EXECUTIVE SECRETARY SENIOR ADVISOR. NOW, THEREFORE, BE IT RESOLVED, BY THE MINNEAPOLIS BOARD OF ESTIMATE AND TAXATION, THAT THE PRESIDENTED OF THE BOARD IS AUTHORIZED TO ENTER AN AGREEMENT OF EMPLOYMENT WITH THE POSITION
OF EXECUTIVE SECRETARY SENIOR ADVISOR ON THE TERMS INCLUDED IN THE CONTINGENT OFFER LETTER DATED MAY 7, 2025. >> THANK YOU. JUST BY WAY OF INTRODUCTION, I
WOULD LIKE TO SAY THAT MS. KEIDERLING HAS EXTENSIVE RESUME FOR HER YOUTHFULNESS. AND SHE GOT HER START WORKING IN PUBLIC ASSISTANCE DETERMINATION WITH THE CITY AND COUNTY OF
DENVER. SHE WAS A BUDGET ANALYST FOR FISH AND WILDLIFE SERVICE AND BUDGET ANALYST FOR THE PLANT ANIMAL AND HEALTH INSPECTION SERVICE, AN AGENCY OF THE USDA.
I WILL SAY THAT SHE HAD THE FORESIGHT TO START LOOKING BEFORE THE RECENT BUDGET CUTS THAT AFFECTED AFUS. AND ESSENTIALLY WOULD HAVE REQUIRED HER TO RELOCATE HAD SHE
CONTINUED WITH THE AGENCY AS IS THE CASE WITH A NUMBER OF OTHER EMPLOYEES IN THE AGENCY. APPARENTLY IT IS NOT A PRIORITY OF THE FEDERAL ADMINISTRATION WE KEEP THINGS LIKE DUTCH ELM
BEETLES AND EMERALD ASH BOAR OUT OF THE U.S. ANYMORE. SO I PRESENT THAT TO YOU. I WOULD HAVE SENT THE RESUME AROUND. SEVERAL OF YOU WERE INVOLVED IN THE INTERVIEWS WITH HER ALONG WITH MS. DYE, BUT I WASN'T SURE
WHETHER I HAD THE ABILITY TO DO THAT SINCE WE HAD AS A SEARCH COMMITTEE TAKEN A PLEDGE OF CONFIDENTIALITY. SO THAT'S MY INTRODUCTION. ARE THERE QUESTIONS?
>> NO QUESTIONS. DO WE HAVE A MOTION? >> SO MOVED. >> SECOND. >> OKAY. WE HAVE A MOTION THAT HAS BEEN MADE AND SECONDED. WE HAVE A PROPER MOTION BEFORE US. WITH THAT, I WILL ASK THE CLERK TO CALL THE ROLL ON THE RESOLUTION. >> BOARD MEMBER FREY.
>> AYE. >> ABENE, AYE. PAYNE, AYE. CHUGHTAI, AYE. VICE PRESIDENT PREE-STINSON, AYE. PRESIDENT BRANDT, AYE. THERE ARE SIX AYES. >> ALL RIGHT. AND I WOULD LIKE TO BREAK A
LITTLE BIT HERE FROM OUR AGENDA AND ASK MS. KEIDERLING TO ADDRESS THE BOARD, AND SEE IF SHE CAN GET THROUGH HER ENTIRE PRESENTATION WITHOUT USING THE WORD "SIR" WHICH I AM TRYING TO
BREAK HER OF. >> THANK YOU, PRESIDENT BRANDT. AND THANK YOU VERY MUCH TO THE BOARD. I AM VERY EXCITED TO BE HERE. I KNOW MANY OF YOU HAVE GOTTEN A CHANCE TO TAKE A PEAK AT MY RESUME, BUT THAT DOESN'T NECESSARILY TELL YOU THE STRENGTHS OF THE POSITION. AND START BY TELLING YOU WHAT I CAN OFFER YOU. MY TIME WITH THE FEDERAL
GOVERNMENT HAS GIVEN ME TWO STRONG SKILLS THAT ARE HIGHLY RELATABLE TO THE POSITION YOU ARE LOOKING FOR. NUMBER ONE, I CAN COMPLETE INDEPENDENT RESEARCH. IT WILL BE A DIFFERENT SUBJECT MATTER AND PREVIOUSLY THE INDEPENDENT RESEARCH SKILLS AND I'M A SELF-STARTER. IF YOU ARE LOOKING TO TRACK DOWN INFORMATION AND MAKE SURE THAT
WE HAVE A CONTINUOUS BASELINE OF KNOWLEDGE AND BOARD AND ABSOLUTELY HERE TO HELP WITH THAT. AND THE SECOND THING I CAN OFFER YOU IS THAT I HAVE THE ABILITY TO PUT POLICY AND REGULATION TO INTERPRET IT AND PUT IT INTO PLAIN LANGUAGE. THAT WILL BE A DIFFERENT SUBJECT MATTER THAN WHAT I WAS WORKING ON PREVIOUSLY WITH
AGRICULTURALISTS AND FOOD SCIENTISTS, BUT I HAVE THE BUILDING BLOCK SKILLS WHERE I'M ABLE TO INTERPRET POLICY AND LEGISLATION FOR YOU AND PUT IT INTO PLAIN LANGUAGE. WHEN I DISCOVERED THAT MY CAREER IN THE FEDERAL GOVERNMENT WAS NOT GOING TO BE TENABLE TO
CONTINUE, I STARTED TO LOOK AROUND AND I BEGAN TO COURT THE CITY OF MINNEAPOLIS PRETTY AGGRESSIVELY. AND THERE IS TWO REASONS FOR THAT. NUMBER ONE, I SO ENJOY THE MIDWEST AND MINNESOTA AND MINNEAPOLIS IS THE LEADER OF MINNESOTA. I WAS RAISED ON THE EAST COAST AND THEN I WENT OUT TO THE MOUNTAIN WEST WHEN I WAS IN
COLLEGE. AND SO I THINK THAT MINNESOTA AND THE MIDWEST IN GENERAL IS SUCH A WONDERFUL HALFWAY POINT BETWEEN THE TWO. OFF MUCH MORE RELAXED LIFE STYLE THAN YOU HAVE ON THE EAST COAST AND YOU HAVE THE CULTURAL OPPORTUNITIES YOU DON'T GET IN OTHER AREAS. I HAVE SPENT THE GREATEST AMOUNT
OF TIME HERE IN MINNESOTA THAN I HAVE ANYWHERE ELSE IN MY ADULT LIFE AND I AM EXCITED TO CONTINUE CHOOSING MINNESOTA AND STAY HERE. MINNEAPOLIS BEING A LEADER IN THIS STATE IS A BIG REASON WHY I WANT TO BE HERE. AND THE OTHER REASON IS BECAUSE THE BENEFITS PACKAGE THAT COMES WITH THE CITY OF MINNESOTA OR
SORRY, CITY OF MINNEAPOLIS S SO IMPRESSIVE. I WAS LOSING A BENEFITS PACKAGE THAT I VERY MUCH USED AND WAS SAD TO LOSE AND THE CITY OF MINNEAPOLIS HAS AN IMPRESSIVE BENEFITS PACKAGE FOR THE EMPLOYEES. I THINK IT IS SOMETHING THE CITY SHOULD BE VERY PROUD OF BECAUSE IT NOT ONLY SHOWS YOUR VALUES
AND HOW MUCH YOU ARE WILLING TO INVEST IN EMPLOYEES. I AM EXCITED TO BE ONE AND I GREATLY APPRECIATE THE OPPORTUNITY. >> THANK YOU. DO MY COLLEAGUES HAVE ANY QUESTIONS? OKAY. I THINK IT'S A TRIBUTE TO THEM AS WELL THAT BENEFIT PACKAGE
EXISTS. AND I KNOW THERE WAS SOME CONSCIOUS EFFORT AFTER THE EFFECTS OF THE PANDEMIC ON EMPLOYEES AND THE BELT TIGHTENING THAT HAD TO HAPPEN THERE TO TRY AND MAKE THIS A GOOD PLACE FOR PEOPLE TO WORK.
AND CONTINUE TO BE A GOOD PLACE FOR PEOPLE TO WORK. MR. FREY. >> MR. PRESIDENT, THAT WAS AN IMPRESSIVE OPENING PRESENTATION, AND THANK YOU. YES, WE DO INDEED HAVE A GOOD BENEFITS PACKAGE.
I AM CURIOUS, WHERE ARE YOU FROM ON THE EAST COAST? >> ARLINGTON, VIRGINIA, SUBURB OF WASHINGTON, D.C. >> THAT IS GREAT. >> THANK YOU. >> ALL RIGHT. SEEING NO FURTHER DISCUSSION, WE'LL MOVE TO THE NEXT ITEM -- >> THANK YOU.
>> THANK YOU, MS. KEIDERLING. >> ANNOUNCEMENTS ARE NEXT. DO MY COLLEAGUES HAVE ANY UPDATES? COMMISSIONER PREE-STINSON. >> JUST VERY QUICKLY TO CLARIFY, OUR AMAZING NEW STAFFER STARTS TOMORROW. AND JUST TO DIFFERENTIATE TO
MAKE SURE WE'LL ALL CLEAR THAT WE DO STILL HAVE TO VOTE ON THE WORK PLAN, WHICH WE HAD A VERSION WE LOOKED AT AND TALKED ABOUT, WHICH IS SEPARATE FROM ON BOARDING. WANT TO MAKE SURE EVERYONE IS CLEAR ON THAT. I WAS JOTTING DOWN THINGS BUT JUST QUICKRY THINGS THAT ON BOARDING WOULD INCLUDE
EVERYTHING THAT ANY OTHER CITY WOULD HAVE AND TOUR OF FACILITIES, GENERAL H.R. TRAINING, COMMUNICATIONS AND DATA SECURITY, LIMS, OPEN MEETING LAWS, THOSE TYPE OF THINGS. PRIORITIZING ONE TO ONE WITH BOARD MEMBERS AND PRB STAFF AND MEETING WITH CITY CLERK AND
FINANCE OFFICE AND THOSE TYPES OF THING WILLS TRANSITION INTO THE WORK PLAN, SO I THINK THAT BY THE TIME WE GET TO THE NEXT MEETING, WE SHOULD BE PHASING OUT OF THIS KIND OF INITIAL ON BOARDING AND MOVING MORE INTO THE WORK PLAN PHASE AND I JUST WANTED TO ADD THAT AND MAKE SURE
WE WERE IN AGREEMENT THAT WE DON'T NEED TO VOTE ON ON BOARDING. WE'RE JUST TALKING ABOUT GENERAL ON BOARDING OF A STAFFER AS WE WOULD FOR THE POSITION AT THE CITY. >> THANK YOU, COMMISSIONER PREE-STINSON. I FORGOT TO ADD THAT I WAS GOING TO ASK THE BOARD'S LEAVE TO NOT
DIRECT OUR NEW EMPLOYEE ON ANY PROJECT SPECIFIC RESEARCH, BUT RATHER JUST GIVE HER A GENERAL PLAN OF ATTACK FOR HOW TO APPROACH INVOLVING YOURSELF IN THE CITY ENTERPRISE AND TO
BACKGROUND YOURSELF IN THE KIND OF RESEARCH THAT WILL BE VALUABLE IN HER POSITION. AND DOWN THE ROAD. IF THAT IS OKAY, WE WILL GO AHEAD WITH THAT AS THE UNDERSTANDING AND WORK ON THE WORK PLAN. AND PERHAPS --
PERHAPS IT WOULD BE APPROPRIATE FOR MS. KEIDERLING TO START CONTACTING ONCE SHE FEELS SHE HAS HER FEET UNDER HER TO START CONTACTING BOARD MEMBERS FOR WHAT THE PRIORITIES WOULD BE FOR A WORK PLAN. AND GET US A LIST THAT WE CAN MAYBE BRING UP AT THE NEXT MEETING. AND SET PRIORITIES SO THAT WE'RE
ALL ON THE SAME PAGE ON HOW SHE SPENDS HER TIME. IS THAT AGREEABLE? COMMISSIONER PREE-STINSON. >> I WOULD SAY THAT WE SHOULD VOTE ON THE ACTUAL WORK PLAN AT THE JUNE 11 MEETING, SO WE SHOULD PLAN TO HAVE THAT READY. AND I WOULD HOPE THAT WE WOULD
CO-CREATE THAT WITH MS. KEIDERLING SO THAT IT'S REPRESENTATIVE OF WHAT WE NEED AND ALSO WE'RE READY TO GO AND THERE IS NOT ANY CONFUSION OR WAITING. WE SHOULD PLAN OFFLINE ANY MEETINGS THAT WE NEED TO HAVE AND ALSO TO SUPPORT YOU IN THE ROLE OF SUPERVISING THIS POSITION, PRESIDENT BRANDT, WHICH I'M HAPPY TO DO THAT TO
MAKE SURE WE HAVE A SMOOTH TRANSITION FROM ONBOARDING TO WORK PLAN. >> THANK YOU, COMMISSIONER PREE-STINSON. ANY OTHER DISCUSSION? SEEING NONE, WE HAVE COMPLETED ALL BUSINESS TO COME BEFORE US TODAY AND WITHOUT OBJECTION, WE STAND ADJOURNED. [GAVEL].
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