05/09/2005 Council Packet - Laserfiche WebLink

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a a a 1 1 1 1 1 1 3 3 1 • 1 Available Funding Sources General Obligation Street Reconstruction Bonds (Minnesota Statutes Chapter 475.58) 5pr ngsted 16 The 2002 legislature amended Chapter 475.58 of the state statutes to enable cities to issue General Obligation Street Reconstruction Bonds without the 20% special assessment requirement for General Obligation Improvement Bonds and without a requirement for voter approval through an election. This new legislation includes several requirements that must be met as follows: • The city must prepare a street reconstruction plan that describes the streets to be reconstructed, the estimated costs, and any planned reconstruction of other streets in the city over the next five years; • The construction must be confined to the improvement of the current street and cannot include any widening or expansion of the street or other added elements like curb and gutter if they do not currently exist. • The street reconstruction plan and the issuance of bonds require a unanimous vote of the City Council following publication of a public hearing for which at least ten days notice has been published in the official newspaper; • There is a reverse referendum provision requiring a vote on the issuance of the bonds when a petition signed by voters representing 5% of votes cast in the last general municipal election is filed within 30 days of the public hearing; • The bonds issued are subject to the net debt limit of the City which is 2% of Estimated Market Value. The City's estimated market value for pay 2005 is $1,535,208,800 which results in a current debt limit of $30,704,176. The City currently has net debt subject to the limit of approximately $5,169,000. The City's remaining net debt limit is approximately $25,535,176. • Taxes levied for the repayment of the debt are exempt from the City's levy limitation. This legislation enables the City to fund the entire cost of their portion of these projects with General Obligation Street Reconstruction Bonds if it meets the above requirements. The bonds are be repaid from ad valorem property taxes, special assessments or other revenues sources with the exception of M.S.A. allotments. We did not prepare any financial projections using G.O. Street Reconstruction Bonds because none of the reconstruction projects in the planning period are anticipated to be confined enough to comply with the requirement of this financing type. - 1 8 5 - City of Lino Lakes - Pavement Management Plan Financing RI