05/13/2002 Council Minutes - Laserfiche WebLink

Home Search

COUNCIL MINUTES MAY 13, 2002 Councilmember Reinert moved to table consideration of the Five -Year Financial Plan for 2002 through 2006 to the Monday, June 10, 2002 City Council meeting. Councilmember Dahl seconded the motion. Motion carried unanimously. Consideration of Resolution No. 02-41, Authorizing Issuance of $2.73 million General Obligation Improvement Bonds — Al Rolek, City Finance Director Rolek advised the City Council has approved public improvement projects for Lake Drive/Apollo Drive, Twilight Acres Sanitary Sewer and West Shadow Ponds Street and Utilities. It is necessary to issue and sell General Obligation (G.O.) Improvement Bonds to fmance the improvements to be made in these projects. The City's financial advisor, Springsted, Inc., has issued its recommendation for the issuance of $2,730,000 G.O. Improvement Bonds. City Finance Director Rolek indicated, if approved, the sale wou consideration for award by the City Council at its meeting t year term, running from 2004 through 2013 and would be r assessments against the benefited parcels. City Finance Director Rolek advised staff recomm for the Issuance and Sale of $2,730,000 G.O. Imp City Finance Director Rolek invited Jerry Sh recommendation on this matter. Mr. Shannon stated Springsted, Inc. General Obligation Improvement stated the bonds would be repaid fro bonds were being issued p 429. He indicated bond proc various areas of the City, inclu Shadow Ponds. on June 24, 2002, with . The issue would have a 10 - ugh the levy of special on of Resolution No. 02-41, Providing Bonds, Series 2002A. , Vice President of Springsted, Inc., to present his a recommendation for the issuance of $2,730,000 e s ; =`d this issued involved three separate projects. He ial assessments levied against benefited properties and the s Charter and Minnesota Statutes, Chapters 475 and e used to fmance street and utility improvement projects in g Lake Drive and Apollo Drive, Twighlight Acres, and West Mr. Shannon stated the bonds will mature annually February 1, 2004 through 2013 and the assessments will be spread over 10 and 15 year periods of time. He indicated the assessments for West Shadow Ponds will be spread over a term of ten years. He added, while the assessments on the Twilight Acres project are actually spread for a term of 15 years, he would recommend that the bonds be amortized over a ten year term. He indicated there was a high likelihood of prepayment of the assessments. Mr. Shannon stated the City may elect on February 1, 2008 to prepay the bonds due on or after February 1, 2009 with no penalty. He stated the estimated rate on the bonds is approximately 4.25 percent, the lowest interest rate he has forecasting for the City of Lino Lakes in 10 years.