HomeMy WebLinkAbout#19 Financing Matters Related to Downtown Project
MAYOR & COUNCIL COMMUNICATION
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DATE: September 6, 2016
REGULAR
ITEM #19
MOTION
AGENDA ITEM: Financing Matters Related to the Downtown Project
SUBMITTED BY: Lake Elmo Finance Committee
THROUGH: Cathy Bendel, Finance Director
REVIEWED BY: Cathy Bendel, Finance Director
Kristina Handt, City Administrator
Finance Committee Chair Fliflet
SUGGESTED ORDER OF BUSINESS:
- Introduction of Item .............................................................. City Administrator
- Report/Presentation………………………………… City Administrator
- Questions from Council to Staff ............................................. Mayor Facilitates
- Call for Motion ............................................................... Mayor & City Council
- Discussion ....................................................................... Mayor & City Council
- Action on Motion .................................................................... Mayor Facilitates
POLICY RECOMMENDER: Lake Elmo Finance Committee
FISCAL IMPACT: NA
SUMMARY AND ACTION REQUESTED: The City Council is being asked to approve the
recommendations proposed by the Finance Committee related to the downtown project fees and
assessments and to direct staff to update the special assessment policy to reflect these changes.
BACKGROUND INFORMATION: For a number of months, the City Finance Committee has
been viewing and discussing a number of avenues to alleviate the financial burden to the
taxpayers who are part of the Lake Elmo Avenue Downtown Project. The following summarizes
the recommendations that came out of those meetings.
City Council Meeting [Consent Agenda Item #19]
September 6, 2016
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The following two items have already be approved by the City Council:
All costs and assessments for Phase I and Phase I were treated as one project for
calculating assessments
An early connection incentive was recommended and approved for those properties
connection to the sewer system within one year of being made available.
The following still need review and approval by the City Council:
Decrease the interest rate being charged on special assessments from 2% over the bond
rate to 1% over the bond rate.
Allow special assessments to be financed for 5 years longer than the City bonding cycle
(streets for up to 15 years and utilities for up to 20 years)
Allow existing residents to be allowed to defer through special assessment City
Connection fees
Approve that the City participate in the Met Council deferral program which will allow
residents and businesses to participate in this Met Council program with the Met Council.
RECOMMENDATION: Based on the aforementioned, staff recommends the City Council
approve the recommendations from the Lake Elmo Finance Committee as follows:
“Move to approve the four recommendations listed and updated the special assessment
policy to reflect those changes”
OR
“Move to approve the following recommendations; ________________ and update the
special assessment policy to reflect those changes”
ATTACHMENT:
1. Detailed recommendation listing from the 8/10/16 Finance Committee meeting