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Mike Mornson - 2010 Road Reconstruction Bonds Page 2 March 23, 2010 city bonds issued under a street reconstruction program from the referendum requirements usually required for bonding expenditures (referendum generally required if 20% of the project is not/cannot be assessed). The City is required to hold a public hearing on its intent to issue these bonds and its 5 -year Street Reconstruction Plan (attached). The City's annual levy for road projects ranges from $150,000 to $175,000, dependent upon the size of the project and the amount that is assessed. The annual levy for this year's road reconstruction project will be approximately $155,000, which is within the typical range. 3. How does this type of financing differ frmn the City's typical way of financing street reconstruction projects? In order to utilize this type of financing, the City has to prepare a 5 -Year Street Reconstruction Plan (SRP) which is presented at a public hearing to solicit comment and feedback from the community (this isn't required for 429 improvement bonds and is an extra step in the typical bonding process). Upon conclusion of the public hearing, the Council must approve the SRP via a unanimous vote. Although a referendum is not required, a reverse referendum is allowable. If a petition bearing the signatures of at least 5 percent of the votes cast in the last general election requesting a vote on the issuance of the bonds is received by the municipal clerk within 30 days after the public hearing, a referendum vote on the issuance of the bonds shall be called (if a vote is taken and the referendum passes, the taxes would be levied on market value rather than tax capacity). In addition, these bonds are restricted by the amount of net debt the city can issue. A city cannot issue debt in excess of 3% of the assessor's taxable market value for the city. For St. Anthony, the 2010 estimated TMV is $829,050,000. Therefore, the total amount of outstanding debt cannot exceed $16,581,000. As of February 1, 2010 the City had only $1,910,000 subject to the legal debt limit (nearly $15 million in capacity available). 4. What is the timeline/process for the issuance of the bonds? Following is the timeline for issuance of the bonds: March 23, 2010 Council holds Public Hearing on Bonds and SRP and adopts Resolution giving preliminary approval for their issuance and approving SRP by unanimous vote March 23, 2010 Council provides for sale of Bonds April 23, 2010 Reverse referendum period ends April 27, 2010 Council awards sale of Bonds May 2010 Closing on Bonds/receipt of funds Please contact me at 651-697-8506 with any questions.