During the session, a detailed presentation by David Wheeler, a Senior Manager in the Banking, Investments, and Debt division, encapsulated the city’s financial landscape. Wheeler provided an annual overview of Minneapolis’s debt, emphasizing the retention of triple-A ratings as an indicator of effective financial stewardship. He noted that such ratings are rare and highlight confidence in the city’s ability to meet its financial obligations. By the end of 2024, Minneapolis had $843 million in outstanding debt, predominantly supported by taxes or levies. Additionally, Wheeler reported $325 million in enterprise-funded debt dedicated to infrastructure and utility projects, assuring the council that revenue ratios were consistently sufficient to cover debt service without necessitating tax levies.

The presentation delved into the statutory debt limit for tax-supported debt, set at 3.67% of taxable market value. Minneapolis’s legal debt limit stands at $2.5 billion, with current utilization at approximately 12.6%, slightly above the regional average of 11% for comparable cities.

The council also reviewed outstanding bonding authorizations, spotlighting $142 million carried over from previous years, owing to projects not requiring immediate bond issuance. These comprised $81 million in utility enterprise bonds and $60 million in levy-funded bonds, as well as additional authorizations in the 2024 budget. Discussion arose regarding project-specific authorizations, such as the PV001 paving project, highlighting a $706,000 approval for 2024. Further discourse involved Commissioner Frey, who addressed funding increments for parkway paving, signaling ongoing negotiations over joint powers agreements and funding allocations.

The session transitioned to the impact of anticipated higher interest rates on future bond sales, with expectations of increased rates compared to the previous year. This prompted inquiries about the convention center’s financing, given a $26 million payment due in December linked to a past refunding issue, with further capital improvements or financing plans not clearly outlined.

A notable resolution during the meeting was the appointment of Christina Keiderling as the executive secretary of the Board of Estimate and Taxation. Keiderling, with a background in public assistance determination and as a budget analyst for federal agencies, expressed eagerness to bring her skills to Minneapolis. Her appointment followed a thorough search process. Keiderling articulated her enthusiasm for joining a city renowned for leadership within Minnesota, appreciating the comprehensive benefits package offered to employees.

As the council wrapped up, announcements included clarifications on the onboarding process for Keiderling, emphasizing the importance of a seamless transition from onboarding to active participation in the board’s work plan, which will be voted on in the next meeting. The meeting concluded with confirmation that all agenda items had been addressed, leading to adjournment without objection.