Agenda - Council - 05/26/2015 - Laserfiche WebLink

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lour Misiion: To work together to reiposibty grow our community, and to provide quality, coat -effective, and efficient government ierrlcas. CC Regular Session 7. 4. Meeting Date: 05/26/2015 By: Diana Lund, Finance Information Title: Adopt Resolution #15-05-129 Providing for the Issuance and Sale of $3,970,000 General Obligation Capital Improvement Plan Bonds, Series 2015 and Levying a tax for the Payment Thereof Purpose/Background: Purpose: To provide the funding mechanism for the construction of Fire Station #2 whose final plans and designs and bid letting were authorized at the regular City Council meeting of January 27, 2015 with the award of the construction contract on April 14, 2015. Background: In 2003, the Minnesota State Legislature adopted a statute known as the "CIP Act" that allows cities to issue municipal bonds under a capital improvement plan without the usual referendum requirement (CIP bonds are subject to a reverse referendum. Whereby, if a petition (filed with the City Clerk) is signed by voters equal to at least five percent of the votes cast in the City in the last general election within 30 days after the public hearing regarding the bonds (March 10, 2015), the bonds may not be issued unless approved by the voters. No petition was filed by the April 9, 2015 deadline. The "CIP Act" applies to capital improvements consisting of city halls, public works and public safety facilities. The City used the CIP bonding method when it refinanced its Fire Station #1 bonds in 2004. The fire station #2 project has been included in the city's regular Capital Improvement Plan (CIP) since 2010 with its funding source listed as the issuance of CIP debt (General Obligation debt). If the CIP calls for funding of the project to be provided by the issuance of General Obligation bonds, additional procedures must be followed: Council must hold a public hearing regarding the issuance of the bonds and the CIP bonded project -Fire Station #2. When a city issues GO CIP debt, they are required to have what is termed a five-year CIP adopted as part of this process that outlines the project to be funded. The five year CIP was adopted at the City Council meeting of March 10, 2015. The CIP Plan for Years 2015 through 2019 that was adopted March loth is different from the City's entire 2015-2019 CIP document that was adopted in February 2015. The City's entire CIP includes all projects within the city: Buildings, Water, Sewer, Streets, that are proposed to be constructed over the 5-year time frame whereas the Five -Year CIP related to the GO CIP bonding has to include a special narration outlining only those projects that are to be funded via CIP debt. At is regular meeting of March 10, 2015 City Council passed resolution #15-03-062 authorizing