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HomeMy WebLinkAbout2003-153 Council ResolutionSTATE OF MINNESOTA CITY OF LINO LAKES RESOLUTION NO. 03-153 CALLING FOR AN ELECTION RELATING TO THE ISSUANCE OF GENERAL OBLIGATION BONDS AND DECLARATION OF OFFICIAL INTENT TO REIMBURSE CERTAIN EXPENDITURES FROM PROCEEDS OF INDEBTEDNESS WHEREAS, The City Council (the "Council") of the City of Lino Lakes, Minnesota (the "City") has determined it is in the best interest of the City to issue general obligation bonds (the "Bonds") in order to finance the improvement and reconstruction of certain streets in conformance with the City's adopted Capital Improvement Program for 2004 and 2005 ("Proj ect"); and, WHEREAS, The City intends to pay for 11% of the cost of the Project through special assessments levied against benefited properties abutting the improvements, in accordance with standard City assessment policies; and, WHEREAS, Pursuant to the City Charter and Minnesota Statutes, Chapter 475, as amended, before issuing any of the Bonds, the City must obtain approval from a majority of the electors voting on the questions of issuing such Bonds; and WHEREAS, Pursuant to Minnesota Statutes, Chapter 205, as amended ("Chapter 205"), the City may call an election for the purpose of voting on these matters; and WHEREAS, The City expects to pay certain expenditures (the "Reimbursement Expenditures") in connection with the election and Projects prior to the issuance of any Bonds, and that proceeds of the Bonds will be used to reimburse the Reimbursement Expenditures; and, WHEREAS, The City reasonably expects that debt obligations in an amount not expected to exceed $3,615,000 will be issued for the Project; and, WHEREAS, Section 1.150-2 of the Treasury Regulations requires the City to declare its reasonable intent to reimburse prior expenditures for the Projects with proceeds of a subsequent borrowing. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA AS FOLLOWS: 1. The Council proposes to issue the Bonds in the aggregate principal amount not to exceed $3,615,000 to finance costs of the Project, and to pay 89% of the cost of the Project through a tax levy against all taxable property in the City and the balance of the cost through special assessments against benefited properties. 1 2. The Council hereby calls for an election to be held pursuant to Chapter 205 on Tuesday, November 4, 2003, from 7:00 a.m. to 8:00 p.m. relating to the authorization by the electors to issue the Bonds. 3. The question to be voted on shall read as follows: QUESTION 1: SHOULD THE CITY OF LINO LAKES BE AUTHORIZED TO ISSUE AND SELL ITS GENERAL OBLIGATION BONDS IN AN AGGREGATE AMOUNT NOT TO EXCEED $3,615,000 TO PROVIDE FUNDS FOR THE IMPROVEMENT AND RECONSTRUCTION OF THE STREETS SHOWN IN THE CAPITAL IMPROVEMENT PROGRAM FOR 2004 AND 2005, AND TO PAY 89% OF THE DEBT SERVICE ON SUCH BONDS WITH A PROPERTY TAX LEVY ON ALL TAXABLE PROPERTY IN THE CITY? 4. The City Clerk is hereby directed to (i) publish and post the notice of election in the City's official newspaper, substantially in the form attached hereto as Exhibit A at least two weeks before the election; (ii) publish a sample ballot in the City's official newspaper at least one week before the election; (iii) post a sample ballot in City Hall for public inspection, and at each polling place, at least four days before the election; and (iv) provide written notice of the election to the County Auditor of the County of Anoka at least 49 days before the election, • including the date of the election and title and language for the ballot question; all as required by Chapter 205. 5. The City finds and determines that the foregoing recitals are true and correct. 6. The City hereby declares its official intent to use proceeds of indebtedness to reimburse itself for Reimbursement Expenditures. This declaration is made solely for purposes of establishing compliance with the requirements of Section 1.150-2 of the Treasury Regulations. This declaration does not bind the City to make any expenditure, incur any indebtedness, or proceed with the Project. 7. This resolution shall take effect from and after its adoption. Adopted this 8th day of September, 2003. ATTEST: Ann Blair, City Clerk CITY OF LINO LAKES, MINNESOTA 2 • • STAFF ORIGINATOR: COUNCIL MEETING DATE: TOPIC: VOTE REQUIRED: BACKGROUND: AGENDA ITEM 7K Michael Grochala September 8, 2003 Resolution No. 03-153 Calling for an Election Relating to the Issuance of General Obligation Bonds (2004-2005 Street Improvement and Reconstruction Project) Simple Majority The City of Lino Lakes currently has 99 miles of local streets that need to be maintained. In 1996, the city established a pavement management program to more efficiently monitor and allocate resources for ongoing maintenance of streets. The program, updated annually, includes condition ratings of each street to help prioritize rehabilitation and/or reconstruction of roadways in the city. As the City of Lino Lakes ages, the need for reconstruction of local streets is becoming a larger priority than it has in the past. Streets that are in poor condition or have storm water drainage problems substantially increase city maintenance costs. The city began implementing the pavement management program in 1998 with the reconstruction of streets located in the Lakes Addition development. Based on the program, the city has identified a number of streets in need of reconstruction for inclusion in its 2003-2007 Capital Improvement Plan (CIP). As with any improvement project, financing must be evaluated before a project can proceed. Three primary funding sources are typically available to cities to pay for the improvements. These include Municipal State Aid street funds (MSA), assessments to benefiting properties, and general tax levies. Streets identified for improvement and reconstruction in 2004 and 2005, that are proposed to be funded by a combination of special assessments and general tax levies, include the following: 2004: Hokah Drive South and Hokah Court Arrowhead Drive (from Ware Road to approximately 1,295 feet east) Totem Trail Rice Court Sioux Lane (from Hokah Drive to approximately 160 feet west) 2005: West Shadow Lake Drive; Shadow Court; Sandpiper Drive • Because a general tax levy is necessary to fund a portion of the costs associated with the above referenced street improvements, the City must obtain voter approval prior to proceeding with such improvements. Staff has prepared Resolution No 03-153 calling for the election and approving the question to be voted on (Attached). In general the question requests authorization to allow the City is issue its general obligation bonds in an amount not to exceed $3,615,000 and to pay 89% of the debt service on such bonds with a property tax levy. The remaining 11 % is proposed to be paid by special assessments to benefiting properties abutting the proposed improvements. These numbers are based on the draft feasibility report that staff is completing and preparing for presentation to the City Council on September 22, 2003 and is generally consistent with the street and storm sewer estimates included in the City's adopted Capital Improvement Program (CIP). The project schedule is as follows: 1. Authorize Ballot Question 2. Submit Ballot Question to County Auditor 2. Receive Report and Call for Hearing on Improvements 3. Hold Public Hearing on Improvements 4. Additional Neighborhood/City wide informational meetings 5. Elections • 6. 60 day waiting period (per charter) expires 7. Council Authorizes Preparation of Plans and Specs (If referendum approved and no petition against) • Sept. 8, 2003 Sept. 12, 2003 Sept. 22, 2003 Oct. 13, 2003 October November 4, 2003 December 12, 2003 December 15, 2003 The proposed resolution and ballot question has been reviewed by the City's Bond Counsel, Kennedy & Graven. RECOMMENDATION: Staff is recommending adoption of Resolution No. 03-153. ATTACHMENTS 1. Resolution 03-153 • • • EXHIBIT A FORM OF NOTICE NOTICE OF SPECIAL ELECTION CITY OF LINO LAKES, MINNESOTA NOTICE IS HEREBY GIVEN, that a special election has been called and will be held in and for the CITY OF LINO LAKES, State of Minnesota, on Tuesday, November 4, 2003, for the purpose of voting on the following questions: ❑ YES ❑ NO INSTRUCTIONS TO VOTERS: "To vote for a question, put an (X) in the square next to the word "YES" for that question. To vote against a question, put an (X) in the square next to the word "NO" for that question." CITY QUESTION NO. 1: ISSUANCE OF BONDS FOR STREET IMPROVEMENT AND RECONSTRUCTION AND LEVYING OF TAXES SHOULD THE CITY OF LINO LAKES BE AUTHORIZED TO ISSUE AND SELL ITS GENERAL OBLIGATION BONDS IN AN AGGREGATE AMOUNT NOT TO EXCEED $3,615,000 TO PROVIDE FUNDS FOR THE IMPROVEMENT AND RECONSTRUCTION OF THE STREETS SHOWN IN THE CAPITAL IMPROVEMENT PROGRAM FOR 2004 AND 2005, AND TO PAY 89 % OF THE DEBT SERVICE ON SUCH BONDS WITH A PROPERTY TAX LEVY ON ALL TAXABLE PROPERTY IN THE CITY? BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING FOR A PROPERTY TAX INCREASE. The amount of taxes that would be raised in the first year of the property tax levy to pay the principal and interest on the bonds is estimated to be approximately $330,690. The maximum amount of increased levy is estimated to be approximately .0002469% of the taxable market value of property in the city. The portion of debt service on the bonds not paid with a tax levy will be paid with special assessments levied against benefited properties. A-1 • • The precincts and the polling places for this election will be as follows: The polls for said election will be open at 7:00 a.m. and will remain open until closing at 8:00 p.m. Any qualified registered voter of the City is entitled to vote at said election, and any resident of the City not previously registered as a voter may register on election day. Dated: , 2003. BY ORDER OF THE CITY COUNCIL /s/ City Administrator • MEMORANDUM DATE: September 5, 2003 TO: City Council FROM: Dan Tesch RE: 2003 Referendum Street Reconstruction Ballot Question Following review by the City Attorney the Ballot Question has been modified to read as follows: BALLOT QUESTION: The City Council of Lino Lakes is considering the • improvement and reconstruction of certain streets within the City in conformance with the City's adopted Capital Improvement Program (CIP) for 2004 and 2005. The total cost is estimated to be $X,XXX,XXX.00. XX percent (XX%) of these costs are proposed to be paid by levying special assessments against the benefited properties abutting such improvements, in accordance with standard City assessment policies. The remaining XX percent (XX%) is proposed to be paid by property tax revenues generated from the entire City. The City Charter requires voter approval before using property tax revenues for this purpose. • "Shall the City Council of Lino Lakes be authorized to issue General Obligation Bonds up to the amount of $X,XXX,XXX.00 and levy property taxes on the entire City for payment of the bonds for the reconstruction of the streets shown in the Capital Improvement Program for 2004 and 2005? Yes No Staff will have additional information regarding project costs at the Council meeting. However, at this time our primary issue is the wording of the ballot question. Document2