09-22-14 Council Packet - Laserfiche WebLink

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CITY COUNCIL AGENDA ITEM 2A STAFF ORIGINATOR Al Rolek MEETING DATE September 22, 2014 TOPIC Consideration of Resolution 14-107 Providing for the Issuance and Sale of Approximately $2,645,000 General Obligation Improvement Bonds, Series 2014A VOTE REQUIRED 3/5 INTRODUCTION Earlier this year the City Council awarded a bid to construct the 21St Avenue Extension project. In addition, the City has been petitioned by the developer to construct street and utility improvements in the Northpointe development. The City will also be constructing Well #6 and well house improvements. These projects will all be undertaken in the Summer/Fall, 2014 and Spring 2015 timeframe and require the issuance of debt to finance the construction of the improvements. BACKGROUND In March of this year the City Council awarded a bid to construct the extension of 21' Avenue north of CSAH 14. The owners of the properties north of CSAH 14 had petitioned the City for the improvements to make it possible to develop a Metro Transit Park and Ride. The cost of the project is to be assessed to the benefitting parcels. Additionally, the City has been petitioned by the developer of the Northpointe development to construct street and utility improvements within that development, the costs of which will be assessed against benefitted parcels. The City will also undertake a project to construct City Well # 6 and Well house during the next several months. In order to finance these projects the City will need to issue general obligation bonds. Our financial advisor, Springsted, Inc. has issued their recommendation for the issuance of $2,645,000 General Obligation Improvement and Utility Revenue Bonds Series 2014A for consideration by the City Council. Resolution 14-107 would provide for the issuance and sale of this issue. If approved, bids would be received on October 27, 2014, with consideration for award of sale by the City Council at its meeting the same day. The Series 2014A issue will be repaid over 10 years from proceeds of special assessments levied against benefitted parcels and through the Area and Unit Trunk fund. RECOMMENDATION Staff recommendation is for the City Council to approve Resolution 14-107 providing for the issuance of $2,645,000 General Obligation Improvement Bonds Series 2014A. ATTACHMENTS Springsted's Recommendations for the Issuance of Bonds Resolution 14-107.