05-28-13 Council Packet - Laserfiche WebLink

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CITY COUNCIL AGENDA ITEM 2 B STAFF ORIGINATOR : Al Rolek MEETING DATE : May 28, 2013 TOPIC : Consideration of Resolution 13 -68 Providing for the Issuance and Sale of Approximately $615 ,000 Taxable General Obligation Improvement Bonds, Series 201 3 A V OTE REQUIRED : 3/5 INTRODUCTION The City Council has awarded a bid to construct the Otter Lake Road Extension project. Th is project require s debt financing to f inance the construction of the improvements. BACKGROUND On March 11 of this year the City Council awarded a bid to construct the extension of Otter Lake Road north of CSAH 14. The owner of the property north of CSAH 14 had petitioned th e City for the improvements to make it possible to develop his parcel. The cost of the project is to be as sessed to the benefitting parcels. In order to finance the project the City will need to issue general obligat ion bonds. Due to elements of the City Charter and federal regulations, the bonds will need to be issued as taxable, rather than tax -exempt, ins truments. Our financial advisor, Springsted, Inc. has issued their recommendation for the issuance of $615 ,000 Taxable General Obligation Improvement Bonds Series 2013A for consideration by the City Council. Resolution 13 -68 would provide for the issuanc e and sale of this issue. If approved , bids would be received on June 24, 2013 , with consideration for award of sale by the City Council at its meeting the same day. The Series 20 1 3 A issue will be repaid over 10 years from proceeds of special assessment s levied against benefitted parcels . RECOMMENDATION Staff recommendation is for the City Council to approve Resolution 13 -68 providing for the issuance of $615 ,000 Taxable G eneral Obligation Improvement Bonds Series 201 3 A. ATTACHMENTS Springsted’s Reco mmendations for the Issuance of Bonds Resolution 13 -68