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515 Little Canada Road, Little Canada, MN 55117-1600 <br />(651) 766-4029 / FAX: (651) 766-4048 <br />www.ci.l ittic-canada. nm. us <br />MEMORANDUM <br />TO: Mayor Keis & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: April 3, 2015 <br />RE: Call for I-Iearing — G.O. Street Reconstruction Plan Bonds <br />MAYOR <br />John Keis <br />COUNCIL <br />Rick Montour <br />Michael McGraw <br />Toni Fischer <br />Christian Torkelson <br />ADMINISTRATOR <br />Joel R. Hanson <br />With the pending reconstruction/rehabilitation of Centerville Road, we have conceptually agreed <br />to finance Ramsey County's share of the project until February of 2017. The current estimated <br />cost for this project is approximately $3,000,000 and the County's share is $2,200,000. We <br />would be covering the issuance and interest costs associated with the bond issue. In our <br />agreement with Ramsey County, we will want a provision that states if they don't make the <br />payment to us by the agreed upon date, they will have to reimburse us for costs associated with <br />the issuance of temporary bonds used to carry us until the payment is received. <br />hn discussing this project with our financial advisors, Ehlers & Associates, the best program to <br />use to accomplish this project is the use of General Obligation Street Reconstruction Plan Bonds. <br />This requires a public hearing of the proposed capital expenditure. This program has a "reverse <br />referendum" provision similar to the program we used to finance the Public Works Building last <br />year. The referendum provision is triggered if a petition signed by at least five percent of the <br />voters from the last general election is filed within 30 days of the hearing. The attached <br />resolution is calling for the hearing on this program to be held on April 22, 2015. If no petition <br />is received, bids are received, and we have the County's Cooperative Agreement in hand, we <br />could be issuing bonds at our meeting of 27th <br />It should also be noted that we would typically finance this type of project with local <br />improvement bonds issued pursuant to Minnesota Statutes, Chapter 429. That does not work in <br />this case given we will not be assessing 20% of the overall project costs. Also complicating the <br />use of that mechanism is we are financing the County's share of the project versus city costs. <br />1 <br />