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<br />FC Case #2 <br /> <br />AUTHORIZATION OF THE ISSUANCE OF $850,000 GENERAL OBLIGATION <br />STATE AID ROAD BONDS TO ASSIST WITH THE FUNDING OF THE <br />CONSTRUCTION OF SUNFISH LAKE BOULEVARD <br /> <br />By: Diana Lund, Finance Officer <br /> <br />Background: <br /> <br />With the proposed development of the Ramsey Town Center area, a Joint Powers <br />Agreement (JP A) was entered into with Anoka County for the construction of AUAR <br />roadways which included County Road 116 and Ramsey, Sunfish and Armstrong <br />Boulevards. Ramsey Boulevard was completed in 2007, with the construction of Sunfish <br />officially completed in 2009. Anoka County handled all contracting responsibilities for <br />Sunfish Boulevard and they will soon be asking for the City's share of the construction <br />costs. <br /> <br />Attached is a breakdown of the funding sources that will be used to fund the construction <br />costs. Bonding is necessary to cover a share of the costs. These bonds will be backed by <br />the City's MSA (state aid) funds and the annual debt service payment will be paid from <br />the City's annual state aid allocation. <br /> <br />The actual bond sale is proposed to be held on October 27,2009 and brought back to City <br />Council for consideration of the rates. <br /> <br />Northland Securities, the City's Financial Advisor will be present at the Finance <br />Committee meeting. A copy of their proposed finance plan for the bond sale is attached. <br />Please note the interest rate repayment schedule of .55%-3.00%. This represents a net <br />interest cost of 2.4%. <br /> <br />Funding Source: <br /> <br />These bonds will be backed by the City's Municipal State Aid funding with the debt <br />service paid from the annual allocation. <br /> <br />Committee Action: <br /> <br />Motion to recommend to City Council that Council adopt Resolution #09-09-XXX <br />authorizing the issuance of General Obligation State Aid Road Bonds in the amount of <br />$850,000. <br />