CC PACKET 03232004 - Laserfiche WebLink

Home Browse Search

City Council Regular Meeting Minutes 04 March 9, 2004 Page 4 1 however, at this point, he felt the City's residents deserved the fire station to be built under 2 budget. 3 4 Councilmember Thuesen stated he would respect the opinion of the majority of the Council. 5 6 Motion carried unanimously. 7 8 B. Resolution 04-025, re: Call for sale of GO Improvement Bonds Series 2004A: and 9 Resolution 04-26, re: Call for sale of GO Improvement Temporary Bonds Series 2004B. 10 Jim Prosser, Ehlers and Associates, explained the proposed issue involved $1.79 million General 11 Obligation Improvement Bonds Series 2004A and$2.075 million General Obligation 12 Improvement Temporary Bonds Series 2004B. He indicated the bonds would serve two separate 13 purposes: 14 1. The Improvement Bonds would finance the 2004 street reconstruction program and were 15 being issued for a 15-year period. He explained bonds maturing in 2013 and thereafter 16 would be callable in 2012 at the option of the City. He indicated they would be paid 17 from assessments and the debt service portion of the City's tax levy, which had an 18 estimated impact of approximately$45 for a home with a value of$200,000. 19 2. The Improvement Temporary Bonds would finance the cost of improvements to 39th 20 Avenue and would be issued for three years and callable in 2005 or thereafter at the 21 option of the City. He indicated the payment structure for developer payment was in 22 place and this project would be paid from several sources including the following: 23 federal grant of$750,000; anchor tenant assessment of$1.205 million; for-sale housing 24 assessments of$325,000; other benefiting properties of$175,000. He added the 39th 25 Avenue project would be paid entirely from these assessments and no portion would be 26 added to the City's tax levy; therefore, no impact would be felt by the taxpayers. 27 28 Mr. Prosser explained the Development Agreement for Silver Lake development included a 29 commitment for the City to construct improvements to 39th Avenue. He stated the Agreement 30 also committed the developer to pay assessments for this development and the temporary bonds 31 permitted the City to finance the improvements during construction to permit the redevelopment 32 project to proceed. He noted a payment or payment schedule would be provided after the 33 various development elements were completed and the City would then be able to call a portion 34 of these bonds and refinance the balance to match the projected developer payment schedule. 35 36 Mr. Prosser noted the proposed sale date was May 11, 2004. He explained the date was timed so 37 Council would have had the opportunity to decide for certain that it was going to proceed with 38 the 39th Avenue project, which would happen at the April 27, 2004, meeting. He indicated 39 Ehlers and Associates would then have time to react to the April 27 decision and send the bonds 40 out for competitive bids prior to the May 11 date. He added one reason this issue was currently 41 being presented was to answer any questions regarding the bonds, as there would be plenty of 42 time for recommended adjustments to be made. 43 44 Councilmember Faust asked regarding the interest advantage of issuing the Series 2004B bonds 45 as temporary bonds. Mr. Prosser responded he did not know if there was a major advantage 46 related to interest rate; however, he felt there was a major advantage in terms of the potential