HomeMy WebLinkAboutItem 14- 7 2 13 2013 Bonding needs1
MAYOR AND COUNCIL COMMUNICATION
DATE: 07/02/2013
REGULAR
ITEM #: 14
AGENDA ITEM: Approve Issuance and Sale of G.O. Improvement Bonds
SUBMITTED BY: Cathy Bendel, Finance Director
THROUGH: Cathy Bendel, Finance Director
REVIEWED BY: Dean Zuleger, City Administrator
SUMMARY AND ACTION REQUESTED: The City Council is respectfully requested to consider
approving the issuance and sale of General Obligation Improvement Bonds to fund the 2013 CIP projects.
BACKGROUND INFORMATION: The 2013 Capital Improvement Plan was reviewed and discussed
at workshops on May 14th and May 28th. The City Council is being asked to consider approving bonding
for the following projects:
• Keats MSA Street and Trunk Watermain Improvements - $500,000
This project consists of $1.3M for Street Improvements and $1.1M in Trunk Watermain
Improvements. The street improvements will be funded 100% by MSA Grant monies and
assessment funds. The water improvements will be funded through a MN-DEED water grant for
$450k, assessments of $75k and a new water bond for $500k. The water fund will make the water
bond payments with annual water revenues.
• Production Well #4 and connecting Watermain - $500,000
This is a $1.5M project, $550k will be funded through a MN-DEED water grant, $450 will be
funded from the cash reserves in the water fund and $500k will be funded by a new water bond.
• Lake Elmo Avenue Sewer Infrastructure Improvements - $3,000,000
This is a $4M project, $1M of which will be paid by the MN-DEED Sewer Grant
Bond payments will be made by the Sewer fund.
• Section 34 (Lennar Area) Water and Sewer Utility Extension - $1,300,000
The City will bond for the project to pay the vendors and the bond amount will be 100% assessed
and recovered. A bond will be negotiated so that the bond can be paid off as the assessment funds
are available.
RECOMMENDATION: It is recommended that the City Council approve bonding for the above
mentioned projects.