06-22-2020 Council Packet - Laserfiche WebLink

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proposed for the street reconstruction improvements under the street reconstruction project. However, the plan is subject to a reverse referendum. Funding is only being considered for the 2021 project at this time. A 15 year payment schedule would result in annual debt service of approximately $215,000 annually based on a $2,600,000 project. Under state law, street reconstruction bonds can be issued without election provided the following requirements are met: a) The City must prepare a 5 year street reconstruction plan b) The City must hold a public hearing c) The City Council must approve the plan by 2/3 vote (amended in 2017) d) A 30 day period must elapse during which time a petition may be submitted requesting an election. The petition must be signed by voters equal to 5% of the votes cast in the last municipal general election. e) If no petition is received, the city may issue bonds without election. The draft 2020-2024 Five Year Street Reconstruction Plan has been prepared. The public hearing has been set for the June 22, 2020 City Council meeting. This will allow for the reverse petition process and possible ballot question submittal to Anoka County, if necessary. If a petition is received, a ballot question will be prepared for consideration by the voters in the 2020 municipal election. If no petition is received, the council may authorize preparation of plans as specifications for the project. City Council consideration following the public hearing will be to approve the 5 year Street Reconstruction Plan and authorize the issuance of Street Reconstruction Bonds for the 2021 improvements. Staff would like to emphasis the following points: • The 2021 project will be subject to future council consideration and action including construction plan approval. • Approval of the plan and bond authorization does not obligate the City to construct a project or issue bonds. • The amount of bonds authorized under the plan represents a maximum amount. • The actual amount of bonds issued will be subject to council approval once a final project cost is determined following plan design and bidding process. • The plan allows for the bonding for the 4th Avenue and Karth Area Improvements to occur anytime during the 2020 – 2024 Five-Year Street Reconstruction Plan. No authority is being provided to authorize the 2024 improvements. Those improvements will be subject to future revision of the 5 Year Street Reconstruction Plan. RECOMMENDATION Staff is recommending approval of Resolution No. 20-67. ATTACHMENTS 1. Resolution No. 20-67 2. 2020 – 2024 Five Year Street Reconstruction Plan