Laserfiche WebLink
L@'t"at <br />- <br />EHLER <br />C <br />From: Stacie Kvilvang & Jonathan North — Ehlers and Associates <br />W <br />LEADERS IN PUBLIC FINANCE <br />OTo: <br />Mike Momson -- City Manager <br />C <br />From: Stacie Kvilvang & Jonathan North — Ehlers and Associates <br />W <br />Date: April 8, 2008 <br />G <br />Subject: 2008 Road Reconstruction Bonds <br />Overview <br />On March 11, 2008, the City Council set a public hearing on the sale of Street Reconstruction <br />Bonds in an amount not to exceed $2.7 million to finance improvements to Silver Lake Road. <br />Since that time, the construction bids were received and the revised amount now needed to <br />complete the project is $1,910,000. <br />Primary Issues to Consider: <br />1. Can the City assess benefiting property owners for the project? <br />2. What is the proposed financing mechanism for the remaining project costs? <br />3. How does this type of financing differ from the City's typical way of financing street <br />reconstruction projects? <br />4. What is the timeline/process for the issuance of the bonds? <br />Analysis of Issues: <br />1. Can the City assess benefiting property owners for the project? <br />No. Since the Silver Lake Road is a County State Aid Road, the City does not have the <br />ability to assess benefiting property owners for a portion of the project, as is typical with <br />the City's on-going road reconstruction program. <br />2. What is the proposed financing mechanism for the remaining project costs? <br />We are proposing that the City utilize its authority to issue General Obligation Street <br />Reconstruction Bonds to finance the entire remaining balance of the project, in which the <br />amount financed will be paid 100% by a general tax levy. This authority was granted to <br />LEADERS IN PUBLIC FINANCE <br />3o6o Centre Pointe Drive <br />Roseville, MN 55ii3-uo5 <br />Phone: 65i -697-85o6 Fax: 65i-697-8555 <br />skvilvang@ehlers-inc.com <br />19 <br />