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STAFF REPORT <br />DATE: May 2, 2023 <br /> REGULAR <br /> <br /> <br /> <br />AGENDA ITEM: 2023A Bonding <br />SUBMITTED BY: Kristina Handt, City Administrator <br /> <br />BACKGROUND: <br />The City Council has included a couple of projects in the 2023-2027 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 Old Village 7 and 2023 Streets (Fields of St. Croix 2 and Tana <br />Ridge). I’ve opted not to include the small amount for well 6 ($240,000) at this time since we will have a <br />discussion about our water options at the June work session and may no longer be moving forward with a <br />test well this year. Should we move forward with it this year, the Council can always pass a reimbursing <br />resolution and bond for it next year. <br /> <br />ISSUE BEFORE COUNCIL: <br />Should the Council authorize the issuance and sale of $5,875,000 million 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 6th 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 6th. <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 />$32,470. The agreement is just for this bond issuance and will expire 60 days after the closing on the bonds <br />in July. <br /> <br />FISCAL IMPACT: <br />The estimated levy schedule can be found on page 8 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. 2023-041 <br />2) Amend and then Approve Resolution No 2023-041 <br />3) Do not authorize the issuance of bonds <br /> <br />RECOMMENDATION: <br />Motion to approve Resolution No. 2023-041: A Resolution Authorizing Issuance and Sale of $5,875,000 <br />General Obligation Bonds, Series 2023A <br /> <br />AND