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Proposed Issue: <br />$8,665,000 General Obligation Bonds, Series 2025A <br />Purposes: <br />The proposed issue includes financing the 2025 street reconstruction and utility projects. <br />• Street Reconstruction ($4,495,000): This portion of the Bonds are being issued to <br />finance the street reconstruction of 815t Street, Elbe Street, Danube Street, Red <br />Maple Lane, Diane Trail, and Evergreen Trail. Debt service will be paid from ad <br />valorem property taxes. <br />• Utility Revenue ($4,170,000): This portion of the Bonds are being issued to finance <br />the utility improvements associated to the street reconstruction projects noted <br />above, as well as other utility work identified to be completed in 2025 throughout <br />the City. Debt service will be paid from utility revenues and special assessments. <br />The City levied $1,002,000 of special assessment on benefiting property owners <br />Authority: <br />The Bonds are being issued pursuant to Minnesota Statutes, Chapters: <br />• 444 - Utility Bonding Authority <br />• 475 - General Bonding Authority <br />• 475.58 - Street Reconstruction and Overlay Plan (SROP) <br />Utility Portion: The utility portion of the bonds are being financed under Chapter 444, which <br />allows cities to issue debt without limitation as long as debt service is expected to be paid <br />from water and sewer revenues. <br />Street Reconstruction Portion: Under chapter 475.58, subdivision 3b, cities are allowed to <br />issue debt after approving a SROP and holding a duly schedule public hearing. The City <br />approved the SROP on June 26, 2023, after a public hearing. <br />In addition, this portion of the Bonds will count against the Net Debt Limit of 3% of the <br />estimated market value (EMV) of taxable property in the City, specifically the SROP portion <br />of Bonds. Since the Pay 2025 EMV is $3,657,652,500, the debt limit of the City is $109,729,575. <br />Therefore, the proposed debt applicable to the SROP, plus the City's current outstanding debt <br />secured solely from property taxes ($6,005,000) leaves the City well within the statutory <br />debt limit. <br />The Bonds will be general obligations of the City for which its full faith, credit and taxing <br />powers are pledged. <br />Presale Report May 12, 2025 <br />City of Lino Lakes, Minnesota Page 1 <br />