12-18-2013 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL DECEMBER 18, 2013 PLAN - PUBLIC WORKS/ PARKS FACILITY Improvement Plan Bonds for construction of a new Public Works /Parks Facility on the property located at 2858 Centerville Road. Estimated construction costs are $2,570,000. Ruff explained that State Statute 475.521 provides the City with the authority to issue these G.O. Capital Improvement Plan Bonds for facilities such as city halls, public safety buildings, public works buildings, and libraries without holding a referendum. The Statute provides for a process, however, which includes a 30 day waiting period after this hearing during which a qualified petition can be presented to the Council which would require that the matter be put on the ballot. Ruff reported that if that were to occur, the Council could still move forward with other financing methods for this project. Ruff noted, however, that it was felt that the G.O. Capital Improvement Plan Bond provides the City with more flexibility. He also noted that the plan is that debt service payments would be made from sewer and water funds as well as cash -on -hand. Ruff indicated that if this financing option moves forward, the plan would be to sell the G.O. Capital Improvement Plan Bond at the Council's first meeting in February. He noted that interest rates are very low, and anticipated a bond sale at a low 3% figure. Ruff reported that the G.O. Capital Improvement Bonds have some limitations, noting that the bonds would count against the City's debt limit. The City has a debt limit of 3 %, or $23 million. Ruff pointed out that Little Canada has very little debt, so the $2,750,000 is only utilizing 10% to 15% of the City debt limit. Ruff summarized the process which includes conducting the hearing this evening, passing the resolution before the Council for preliminary approval of the G.O. Capital Improvement Plan Bonds and adopting a Capital Improvement Plan, waiting 30 days to determine whether or not a reverse referendum petition will be submitted. If a petition is not received, the sale of the bonds is anticipated to occur at the first meeting in February. Ruff then reviewed the Capital Improvement Plan that is a part of this process, noting that it was prepared by his office and City staff. Ruff indicated that as part of this plan, the State wants consideration of several issues including the ability to share facilities, operating costs, etc. Ruff pointed out that a good deal of thought and planning has been done as part of the decision to move forward with this project. Blesener noted that if this bond sale results in a petition for a reverse referendum, the City has other options to finance the project. Ruff reported that that was correct. He noted that the City could pay for the project with cash, or it could use a combination of cash and sewer and water bonds which are not subject to a reverse referendum. Blesener 2