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HomeMy WebLinkAboutExecutive Committee - Minutes - 12/20/2002Executive Committee Minutes December 20, 2002, County Board Room Members Present: Kenneth Jardine, John Blahnik, Dee Kittleson, Harold Maki, Marco Bichanich Members Absent: Brett Rondeau Others Present: Tom Gordon, Mark Abeles-Allison, Dan Anderson, Kris Kavajecz Meeting was called to order at 3:00pm by Vice-chairman Bichanich. Motion by Jardine, second by Maki to approve minutes of the December 10 meeting. Motion carried. DISCUSSION AND POSSIBLE ACTION REGARDING UNFUNDED LIABILITY: Abeles-Allison explained that current unfunded liability debt for pensions is approximately $1,544,000. The county is currently paying 8% interest annually, with a schedule to pay off the debt by 2026. He further explained that he met with Dan Anderson, County Treasurer and Tom Gordon, County Clerk to discuss the current financial standing of the county and to discuss options for the refinancing of the unfunded liability debt. The county currently has approximately $2,100,000 in undesignated funds. The Administrator, Treasurer, and Clerk recommend using $544,000 of the undesignated funds to apply to the unfunded liability debt and to refinance the remaining $1,000,000 through either the State Trust Fund or a local financial institution. The State Trust Fund is currently offering 6% annual interest with no penalties for pre-payment. It is believed that an even more competitive rate may be offered through local financial institutions. Abeles-Allison suggested that the committee authorize him to file an application with the State Trust Fund to begin the process and to also send requests for bids to local financial institutions. The bids would stipulate that the rate must be fixed, for a term of ten years, and that there be no penalty for pre-payment. All fees must be included in the bids. Abeles-Allison explained that if the refinancing can be completed prior to January 31, 2003, the county will save $123,000 in interest that would have had to be paid for the previous year. The committee discussed all options. Motion by Jardine, Second by Blahnik to authorize the County Administrator, Treasurer, and Clerk to file an application with the State Trust Fund and to request bids from local financial institutions to refinance approximately $1,000,000. Motion Carried. Motion by Blahnik, Second by Jardine to adjourn. Motion Carried. Meeting Adjourned at 3:25pm.