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STAFF REPORT <br />DATE: June 17, 2025 <br /> REGULAR <br /> <br /> <br />TO: Mayor and Councilmembers <br />FROM: Clarissa Hadler, Finance Director <br />AGENDA ITEM: Set Sale Resolution - 2025 Bond Issuance <br /> <br /> <br />CORE STRATEGIES: <br /> <br />☐ Vibrant, inclusive, connected community ☐ Efficient, reliable, innovative services ☐ Responsive, transparent, adaptive governance ☒ Balanced Finances now and future <br />☐ Managed Growth <br /> <br />BACKGROUND: <br />Each year, the city determines how much money it would like to bond for to complete the capital projects <br />it has planned. In 2024, staff received direction from the Council to begin to decrease the amount the city <br />bonds for projects, so this year, of the approximately $6 Million in Infrastructure Capital Projects for <br />2025, only $2,185,000 will come from bonding. <br /> <br />The Council has previously approved the project we will be bonding for this year. The 2025 Street <br />Improvements is considered a single construction project but encompasses improvements in five areas of <br />the city; <br />• 55th Street / 57th Street / Julep Way <br />• Irish Court <br />• Lake Elmo Vista Neighborhood (55th St) <br />• Prairie Hamlet Neighborhood (59th St Ct N) <br />• Teal Pass Estates Neighborhood (Jerome Ave N / Jasper Ave N / 49th St) <br /> <br />ISSUE BEFORE COUNCIL: <br />Should the Council authorize the issuance and sale of $ 2,185,000 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 July 15th 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 July 15th. <br /> <br />Per the City Special Assessment Policy, a portion of the project (approx. 30%) will be assessed to <br />benefitting properties. These assessments are payable over 15 years and will be used to pay a portion of the <br />bonds. The remaining portion will be paid via the debt levy. The 2025A issuance is expected to require a <br />debt levy of an average of $226,000 for ten years. <br /> <br />Lastly, included in your packet is the Municipal Advisory Service Agreement with Northland Securities <br />Inc. The agreement sets out the services Northland will provide in the bond issuance and compensation of <br />$ 31,388.50. The agreement is just for this bond issuance and will expire 60 days after the closing on the <br />bonds in August.