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City Council Regular Meeting Minutes February 8, 2005 Page 4 VI. GENERAL POLICY BUSINESS OF THE COUNCIL. A. Consider Resolution 05 -024• Minnesota Department of Transportation Contracts for 39`" 3 Avenue Phase III; Todd Hubmer presenting 4 Mr. Hubmer reviewed the resolution with the Council and indicated that the contract lists the 5 terms of the agreement. There will be a similar document as construction nears for the Council's 6 consideration. 8 Motion by Councilmember Gray, seconded by Councilmember Thuesen, to adopt Resolution 05- 9 024, Appointing the Commissioner of Transportation as Agent of the City to Accept Federal Aid 10 Funds. 11 12 Motion carried unanimously. 13 14 B. Consider Resolution 05 -025, Calling for Bond Sale, Stacie Kvilvang; Ehlers & 15 Associates presenting 16 Ms. Kvilvang reviewed the pre -sale report. She said approximately $125,000 will need to be 17 levied annually. The city will levy $341,000 of the special assessments for the project to 18 benefiting property owners in the years 2005 through 2019, which will be collected 2006 through 19 2020. The rate is 2% over the true interest cost of the bonds. The city will provide equity to the 20 project of approximately $157,000 from the city's storm water fund. An official statement will 21 be mailed on February 24 if the city chooses approve the sale. The bonds will be rated on March 22 1. She noted the closing will be the first part of May in order to make the funds available for the 'Z project. 25 Councilmember Stille asked how the rates have been. Ms. Kvilvang answered the rates have 26 been in the neighborhood of 4% and 5 %. 27 28 Motion by Councilmember Thuesen, seconded by Councilmember Gray, to adopt Resolution 05- 29 025, Providing for the Sale of $1,690,000 General Obligation Improvement Bonds Series 2005A. 30 31 Motion carried unanimously. 32 33 Mayor Faust noted the motion that was made to authorize street improvements must be made 34 before the motion can be made to approve the bond sale. Therefore, the interest rates cannot be 35 known until the project has been approved by the city. He explained these are projects that need 36 to keep going on; though they are painful for the residents. He noted the city will assist the 37 residents as much as possible and invited any residents to call city hall with concerns and 38 problems. 39 40 A citizen asked if the assessment could be higher or lower than what was advised. City Attorney 41 Mr. Gilligan answered the interest rate could change, but the principal will be the same as was 42 notified in the assessment. 43 44 Councilmember Stille explained that a 1 % increase in interest rates would translate to about $2 45 per month if financing the assessments.