05/29/2007 Council Packet - Laserfiche WebLink

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AGENDA ITEM 2A IIIISTAFF ORIGINATOR Al Rolek MEETING DATE May 29, 2007 TOPIC Consideration of Resolution 07 -80 Providing For The Issuance And Sale Of Approximately $4,215,000 General Obligation Tax Increment Bonds, Series 2007A s • VOTE REQUIRED Simple Majority On May 14 the City Council awarded a contract to Lunda Construction for the reconstruction of the 35W /Lake Drive interchange and related improvements. The project is being funded by a number of sources, including contributions from MN /DOT and Anoka County. To finance the City's cost of the project staff has proposed utilizing TIF proceeds generated from the Legacy and Panatonni TIF districts, MSA funds, state highway tumback funds and various other sources that were presented to Council at prior meetings. As the contract for the project has been awarded, staff is proposing at this time the issuance of G.O. Tax Increment bonds to finance the city's portion of the project. Our financial advisor, Springsted, Inc. has issued their recommendation for the issuance of $4,215,000 G.O. Tax Increment Bonds Series 2007A (see attached). If approved, bids on this issue would be received on June 25, 2007, with consideration for award by the City Council at its meeting the same day. The Series 2007A issue would have a 16 -year term, with final maturity in February, 2024, and would be repaid through the tax increments, as detailed above, and backed by MSA funding and, ultimately, the full faith and credit of the City of Lino Lakes. As outlined in the recommendation, the debt service schedule is structured to utilize TIF proceeds first, with a tax levy schedule for the remaining debt service. The tax levy will be evaluated annually and offset by MSA funds; the City Council would then cancel the tax levy on an annual basis, as needed. Staff recommendation is for the City Council to approve Resolution 07 -80 providing for the issuance and sale of $4,215,000 G.O. Tax Increment Bonds, Series 2007A. 1. Adopt Resolution 07 -80. 2. Refer to Staff for further review. 3. Deny Resolutions 07 -80. Option 1