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515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(651) 766 -4029 / FAX: (651) 766 -4048 ADMINISTRATOR <br />www.ci.little- canacta. mn. us Joel R. Hanson <br />MAYOR <br />Bill Biesener <br />COUNCIL <br />Rick Montour <br />John Keis <br />Michael McGraw <br />Shelly Boss <br />MEMORANDUM <br />TO: Mayor Blesener and Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: November 22, 2013 <br />RE: G.O Capital Improvement Plan Financing - <br />Public Works /Parks Facility <br />As was discuss with Mark Ruff of Ehlers, the preferred method to finance our new <br />building would be to make use of General Obligation Capital Improvement Bonds. This <br />will enable us to preserve existing cash while also avoid a tax levy going forward (2015 — <br />2034) through the use of depreciation proceeds from the water and sewer funds. <br />To initiate this process, we must hold a public hearing to review the CIP Plan and on the <br />issuance of bonds to finance the project. While we have not finalized the details of the <br />building project, it would be preferential to be in the bond market in January to take <br />advantage of typically lower interest rates. Therefore, we are recommending at <br />maximum bond issue size of $2,570,000 that will be more than adequate to fund the <br />project. If we learn that fewer dollars are needed, we can reduce the size of the bond <br />issue. <br />Staff is recommending we hold this hearing at our meeting of December 18th. We then <br />have to wait 30 days before proceeding with the bond issue to ensure a valid reverse <br />referendum petition is not received (5% of the voter in the last general election). The <br />attached resolution needs to be adopted to commence the process. <br />1 <br />