Agenda - Council - 10/27/2009 - Laserfiche WebLink

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Case #1 AUTHORIZATION AWARDING THE SALE OF $1 1 3+60,000 GENERAL OBLIGATION STATE AID ROAD BONDS, SERIFS 2009A By; Diana Lund, Finance Officer Background: With the proposed development of the Ramsey Town Center area, a Joint Powers Agreement (JPA) was entered into with Anoka County for. the construction of AUAR roadways which included County Road 116 and Ramsey, Sunfish and Armstrong Boulevards. Ramsey Boulevard was completed in 2007, with the construction of Sunfish officially completed in 2009. Anoka County handled all contracting responsibilities for Sunfish Boulevard and they will soon be asking for the City's share of the construction costs. Attached is a breakdown of the funding sources that will be used to fund the construction costs, . Bonding is necessary to cover a share of the costs. These bonds will be backed by the City's MSA (state aid) funds and the annual debt service payment will be paid from the City's annual state aid allocation. City Council authorized the issuance of $1,360,000 of State Aid Road Bonds at its meeting of September 22, 2009 with authorization of the bond sale to come forward October 27. The actual bond sale will occur on November 1, 2009, and based on the interest rates, it will be determined whether the issue will be better suited as a tax- exempt issue or as a taxable issue through Build America bonds. Build America bonds are a taxable issue that allow the City to get reimbursed up to 35% of the interest costs through the Federal Government stimulus plan. Northland Securities, the City's Financial Advisor, will be in attendance to present the bond proposal. Funding Source; These bonds will be backed by the City's Municipal State Aid funding with the debt service paid from the annual allocation.