Agenda Packets - 2016/11/14 - Laserfiche WebLink

Home Browse Search

Item No. 7.C. Meeting Date: November 14, 2016 Type of Business: Council Business City Administrator Review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Mark Beer, Finance Director Item Title/Subject: Public Hearing to Consider Resolution 8658 Adopting a Capital Improvement Plan and Giving Preliminary Approval to the Issuance of General Obligation Capital Improvement Bonds The City Council commissioned a space-needs-study and contracted with an architect to provide preliminary design and cost estimates for the construction of a new public works facility. The City Council has reviewed the preliminary plans and provided direction to staff on design and construction. The City had previously planned for construction of the facility in 2016 but delayed construction to give the new public works director time to review the proposed facility. There are a number of preliminary steps necessary before final approval can be considered. State statutes require that the City hold a public hearing with notice of at least 14 days but no more than 28 days published in the City’s newspaper of record. Publication occurred in the October 28, 2016 Sun Focus. The City Council adopted resolution 8562 adopting a five year financial plan for 2017 thru 2021 on May 9, 2016. One of the components of the five year plan is a five year Capital Improvement Program (CIP). As part of the process of considering construction and financing of a Public W orks facility the CIP will need to be updated to reflect more accurate cost data and adopted by resolution to comply with MN Statute Section 475.521. Attached is the updated CIP and cash flows for the CIP, relevant state statutes, bond sources and uses, and Resolution 8658. Capital Improvement bonds issued under MN Stat. Sec. 475.521 require a reverse referendum period of 30 days subsequent to adoption by the City Council. By adopting the attached resolution the City Council is not obligated to construct and finance the proposed Public Works facility. The bond amount can be reduced as we finalize some of the details but it is better to set it higher to provide flexibility if needed. This is a preliminary step in that process. Staff recommends that the Mayor open the public hearing and take any comments, consider adopting the updated CIP and granting preliminary approval to issue Capital Improvement Bonds. Respectfully Submitted, Mark Beer, Finance Director