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STAFF REPORT <br />DATE: May 7, 2024 <br /> REGULAR <br /> <br /> <br /> <br />AGENDA ITEM: 2024 Bonding <br />SUBMITTED BY: Clarissa Hadler, Finance Director <br />REVIEWED BY: Clark Schroeder, Interim City Administrator <br /> <br />BACKGROUND: <br />The City Council has included a couple of projects in the 2024-2033 CIP for this year with funding <br />proposed to come from bonding. The Council has previously approved all of the projects we will be <br />bonding for this year. Projects include 2024 Street Improvements (Carriage Station and Jamaca Court) <br />and 2024 Collector Streets (15th Street N & Hudson Blvd). <br /> <br />ISSUE BEFORE COUNCIL: <br />Should the Council authorize the issuance and sale of $ 5,230,000 general obligation bonds? <br /> <br />PROPOSAL DETAILS/ANALYSIS: <br />Tammy Omdahl from Northland Securities will be at the meeting to go over the finance plan, which is <br />included in your packet, and answer any questions you may have. Also included in the packet is the <br />resolution to authorize the issuance and sale of the bonds. Bids are due the morning of June 4th and Council <br />would take final action on approving the bonds at the meeting that evening. At this time the interest rates <br />are an estimate and won’t be known until June 4th. <br /> <br />Lastly, included in your packet is the Municipal Advisory Service Agreement with Northland Securities <br />Inc. The agreement sets out the services Northland will provide in the bond issuance and compensation of <br />$ 29,045. The agreement is just for this bond issuance and will expire 60 days after the closing on the <br />bonds in July. <br /> <br />FISCAL IMPACT: <br />The estimated levy schedule can be found on page 9 of the finance plan. The city is required to levy 105% <br />of the general fund portion of the improvement (street) projects. <br /> <br />OPTIONS: <br />1) Approve Resolution No. 2024-061 <br />2) Amend and then Approve Resolution No 2024-061 <br />3) Do not authorize the issuance of bonds <br /> <br />RECOMMENDATION: <br />Motion to approve Resolution No. 2024-061: A Resolution Providing for the Competitive Negotiated Sale <br />of $5,230,000 General Obligation Improvement and Water Revenue Bonds, Series 2024A <br /> <br />AND <br /> <br />Motion to approve the Municipal Services Agreement with Northland Securities, Inc. <br /> <br />ATTACHMENTS: <br />• Finance Plan <br />• Resolution No 2024-061 <br />• Municipal Advisory Services Agreement with Northland Securities, Inc.