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HomeMy WebLinkAboutMinutes - Minutes - Municipal Property Corporation - Meeting Date: 11/9/2020Glendale A R I Z O N A MINUTES MUNICIPAL PROPERTY CORPORATION GLENDALE CITY HALL 5850 W. GLENDALE AVE. GLENDALE, ARIZONA 85301 VIRTUAL MEETING NOVEMBER 9, 2020 9:00 A.M. 1. CALL TO ORDER Chair Peterson called the meeting to order at 9:00 a.m. 2. ROLL CALL Chair Peterson announced quorum was reached. Present: Leland Peterson, Chair John Jones, Board Member Donald Knafels, Board Member David Leckie, Board Member Roger Schwierjohn, Board Member Also Present: Vicki Rios, Assistant City Manager Lisette Camacho, Director, Budget and Finance Julie Patterson, Management Assistant Attendees: Kurt Freund, RBC Capital Markets Kathryn Pong, RBC Capital Markets Bill DeHaan, Greenberg Traurig 3. CITIZEN COMMENTS No citizens in attendance. No citizen comments received. 4. ADMINISTER OATH OF OFFICE Presented by: Lisette Camacho, Budget and Finance Director Ms. Camacho announced that all Board Members' Oaths of Office are current. No oaths were administered. 5. APPROVAL OF THE NOVEMBER 12, 2019 MINUTES Presented by: Vicki Rios, Assistant City Manager Presented by: Lisette Camacho, Director, Budget and Finance Motion by Board Member Jones, second by Member Schwierjohn to approve the November 12, 2019 Municipal Property Corporation meeting minutes as written. AYE: Leland Peterson, Chair David Leckie, Board Member John Jones, Board Member Donald Knafels, Board Member Roger Schwierjohn, Board Member Passed 6. ELECTION OF OFFICERS Presented by: Lisette Camacho, Director, Budget and Finance Ms. Camacho announced that an election of officers was needed and announced the current positions as Chair/President, Vice President/Secretary, and Treasurer. Chair Peterson stated that he was willing to remain serving as Chair/President; however, welcomed others who would like to volunteer for the position. There were no volunteers. Motion by Board Member Jones, second by Board Member Schwierjohn, for Board Member Peterson to remain as Chair/President of the Municipal Property Corporation. AYE: Leland Peterson, Chair David Leckie, Board Member John Jones, Board Member Donald Knafels, Board Member Roger Schwierjohn, Board Member Passed Board Member Knafels announced that he was unable to continue to serve as an officer. Board Member Jones volunteered to serve as Vice President and Secretary. Motion by Board Member Schwierjohn, second by Board Member Knafels, to appoint Board Member Jones as Vice Chair and Secretary of the Municipal Property Corporation. AYE: Leland Peterson, Chair David Leckie, Board Member John Jones, Board Member Donald Knafels, Board Member Roger Schwierjohn, Board Member Passed Board Member Schwierjohn volunteered to continue to serve as Treasurer, unless others were interested. There were no volunteers. Motion by Board Member Leckie, second by Board Member Knafels, for Board Member Schwierjohn to remain as Treasurer of the Municipal Property Corporation. AYE: Leland Peterson, Chair David Leckie, Board Member John Jones, Board Member Donald Knafels, Board Member Roger Schwierjohn, Board Member Passed 7. PRESENTATION ON THE FINANCIAL STATUS OF THE CITY Presented by: Vicki Rios, Assistant City Manager Presented by: Lisette Camacho, Director, Budget and Finance Ms. Camacho gave a briefing on the financial status of the City, which included the following highlights: • FY2020 revenue is up approximately 4% from prior year. • The General Fund balance at the end of FY2020 is approximately $10.1 million. • Some financial categories struggled due to the pandemic; however, some line items, such as construction and retail sales were strong, and remained so through the end of August 2020. • There is $5 million set aside in the FY2020 General Fund. • It is anticipated that current financials will weather the pandemic without major disruption. Ms. Rios clarified that the $5 million set aside was part of the COVID-19 CARES Act funds from the state government. Ms. Camacho announced that comprehensive financial reports are posted on the Glendale website. Mr. Peterson commented that the construction figures were encouraging, and he was proud of what the City has been able to accomplish during these times. Ms. Camacho announced that in Spring 2019, a new Bond Committee was formed in order to review the potential for new bonds. The Committee met with the City's financial advisors, reviewed financial information and bonding capacity, assessed the need for additional bond authorization, and considered ballot language. Ms. Camacho reported that the Bond Committee recommended four ballot questions to Council for additional bonding to fund projects for the following city departments: Landfill, Parks and Recreation, Flood Control, and Streets. Ms. Camacho stated that the recommendations were forwarded to Council, which approved the four questions with minor changes to the ballot language. Ms. Camacho announced that all four questions failed in the recent election; however, the effort may be undertaken again in another two years. Ms. Rios shared her observations, which included the following: • The bond election was a very challenging undertaking in regard to getting the message to residents. • Staff was restricted from advocating for or against the bonds; however, strived to conduct extensive outreach. Staff gave presentations at a variety of City Boards and Commission meetings, but there was low to no citizen attendance at these meetings. • A PAC was formed to support the bonds and there was some signage; however, the PAC's messaging came out a little late and many people voted early. • She heard nothing negative about the bonds but also saw no large public push, either. • Another bond election will be considered in two years, in conjunction with the General Election at that time. Staff will analyze this year's process and results for insights. Chair Peterson thanked staff for the report. Mr. Peterson noted that these are very unusual times and there will be challenges ahead, as for any city. 8. MPC EXCISE TAX REVENUE BONDS SUMMARY & UPDATE ON FUTURE REFUNDING Presented by: Kurt Freund, Managing Director, RBC Capital Markets Presented by: Kathryn Pong, Vice President, RBC Capital Markets Mr. Freund and Ms. Pong gave a presentation, with detailed charts and graphs, on the following: • Outstanding Excise Tax Debt Profile • The MPC has approximately $190.2 million in Outstanding Debt as of November 1, 2020. • Update on Market Conditions • Municipal Markets Commentary • Short -Term Market Commentary • Update on Interest Rate Movements — Municipal Yields versus Treasury Yields • Historical 5, 10, and 30 -Year Interest Rates • General Market Update on bonds/municipal markets • Current Municipal Market Conditions Ms. Pong commented on a series of bonds with a call date in 2025 and stated that the RBC team may be back in the Spring with refunding updates regarding these bonds. Chair Peterson inquired about any impacts to bonds due to the election and political changes. Mr. Freund stated that currently, federal tax law allows for the issues of federal tax-exempt bonds to re -finance federal tax-exempt bonds; however, Congress is talking about repealing this law. Mr. Freund stated that the politics at the moment makes it difficult to know what Congress will do; but the RBC team will continue to monitor the situation. Ms. Pong commented that interest rates for Municipal Markets are at historical lows and the value of bonds coming into the market is at record high. Ms. Pong anticipated that interest rates would remain steady and a low levels for the near future. The agenda item was concluded. 9. ADJOURNMENT Board Member Knafels stated that he has been privileged to serve on the Board for the last nine to ten years and announced that as he is moving out of Glendale, he will no longer to be able to serve on the Board. Board Member Knafels stated that he has enjoyed participating and has learned very much. Chair Peterson thanked Board Member Knafels for his service and wished him well in his new transition. Other Board Members echoed this sentiment. Motion by Board Member Knafels, second by Board Member Schwierjohn, to adjourn the meeting at 9:44 a.m. AYE: Leland Peterson, Chair David Leckie, Board Member John Jones, Board Member Donald Knafels, Board Member Roger Schwierjohn, Board Member Passed The Municipal Property Corporation meeting minutes of November 9, 2020 were submitted and approved this of November 8, 2021. L sette Camacho Budget and Finance Director