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City Council Regular Meeting Minutes 8 February 11,2003 Page 6 1 2 Motion carried unanimously. 3 4 VI. REPORTS FROM COMMISSIONS AND STAFF. 5 A. Report on proposed'sale of bonds for the following purposes(Representatives from 6 Ehlers &Associates were present). 7 Jim Prosser of Ehlers &Associates addressed the Council and provided an update on the 8 proposed sale of bonds. He said the Bonds will serve three separate purposes which include: 1) 9 The Sewer and Water revenue Bonds are being issued to finance the cost of 27`h Avenue sanitary 10 sewer replacement, installation of water main in the Kenzie Terrace area, chemical treatment 11 facility renovation for the water supply system and related system improvements 2)The 12 Improvement Bonds will finance the 2003 street reconstruction program and 3) The Equipment 13 Certificates will finance a portion of the cost of replacing fire and public works equipment. 14 15 Mr. Prosser said the Sewer and Water Revenue Bonds and the Improvement Bonds are being 16 issued for a 20-year period. He stated the bonds maturing in 2012 and thereafter will be callable 17 in 2011 at the option of the City and the Equipment Certificates will be issued for a term of five 18 years. 19 20 Mr. Prosser said the Water and Sewer Revenue Bonds will be payable from water and sewer 21 revenues and the City has previously approved a rate increase to cover the debt service for the 22 bonds. He said the Improvement Bonds will be paid from the debt service portion of the City's 23 tax levy and the estimated impact of this levy will be about $38.64 for a home with a value of 24 $184,000. He stated the Equipment Certificates will also be paid from the debt service portion of 25 the City's tax levy and the estimated impact of this levy will be about$30.32 for a home with a 26 value of$184,000 for a period of five years. 27 28 Mr.Prosser noted that the City has already taken action to provide funding for the Water and 29 Sewer Bonds. He said the use of Improvement Bonds for street reconstruction has been an 30 established practice for over ten years and the use of Equipment Certificates is common for 31 many communities,but new to St. Anthony Village. He explained that the term of the 32 Equipment Certificates is limited to five years or the expected life of the equipment,whichever is 33 less. He said there are some other options to finance equipment with a useful life of over five 34 years (fire equipment). 35 36 Mr. Prosser gave an overview of important dates, which include the Pre-Sale Review on 37 February 11, 2003; Distribute Official Statement on March 10; 2003; Conference with Rating 38 Agency on the week of March 17, 2003; Bond Sale on March 25, 2003; and an Estimated 39 Closing Date of April 16, 2003. 40 41 1. Resolution 03-022, re: GO bonds for sewer and water revenue relating to o 27`h 42 Avenue NE sanitary sewer replacement and installation of water main in Kenzie 43 Terrace area. 44 Motion by Councilmember Horst to adopt Resolution 03-022,re: GO bonds for sewer 45 and water revenue relating to 27`h Avenue NE sanitary sewer replacement and installation 46 of water main in Kenzie Terrace area. 47