2021-043 Council Resolution - Laserfiche WebLink

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STAFF ORIGINATOR: MEETING DATE: CITY COUNCIL AGENDA ITEM 2A Hannah Lynch, Finance Director May 10, 2021 TOPIC: Consider Resolution No. 21-43, Providing for the Issuance and Sale of General Obligation Street Reconstruction Bonds, Series 2021A, in the Proposed Aggregate Principal Amount of $1,815,000 VOTE REQUIRED: 3/5 On June 22, 2020, the City Council held a public hearing, approved the 2020-2024 Five Year Street Reconstruction Plan, and gave preliminary approval regarding the issuance of Street Reconstruction Bonds. On February 8, 2021, the City Council accepted bids and awarded a construction contract for the 2021 Street Improvement Project. The project includes street reconstruction and street rehabilitation. The street reconstruction portion includes a full depth reclamation, spot subgrade repairs, and culvert replacements in the following areas: ® 4th Avenue between Main Street and Pine Street Joyer Lane between Birch Street and Karth Road Karth Road between Joyer Lane and the cul-de-sac ® Talle Lane between Karth Road and Canfield Road ® Canfield Road between Talle Lane and Gaage Lane ® Gaage Lane between Canfield Road and Birch Street In order to finance these improvements, the City planned to issue General Obligation Street Reconstruction Bonds. The street rehabilitation portion of the project will be funded from other sources. Also on February 8, 2021, the City Council adopted a resolution declaring the intent to reimburse from future bond proceeds. The Internal Revenue Code requires cities to declare their intent to reimburse project costs incurred prior to receipt of bond proceeds. Preliminary expenditures such as architectural, engineering, surveying, bond issuance, and similar costs are exempt from this provision. The General Obligation Street Reconstruction Bonds will be repaid over a 10-year period by an annual debt service tax levy. This levy was anticipated in the City's Capital Equipment Plan which was reviewed in the Fall of 2020. The City's fiscal advisor, Baker Tilly, -has prepared aPre-Sale Summary for the Issuance of General Obligation Street Reconstruction Bonds to finance the 2021 Street Reconstruction improvements. Terri Heaton of Baker Tilly will be available to answer any questions that the City Council may have relative to the recommended financing.