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. 5. Meeting Date: 05/26/2015 By: Diana Lund, Finance Information Title: Adopt Resolution #15-05-130 Providing for the Issuance and Sale of $1,235,000 GO Street Reconstruction Bonds, Series 2015B, and Levying a Tax for the Payment Thereof Purpose/Background: Purpose: To provide funding for road reconstruction and bituminous overlays via the issuance of Road Reconstruction Plan Bonds. Background: Over the past several years, much discussion has taken place over the financing of road improvements. These needed improvements: Sealcoats, Overlays and Reconstructions are based on the 60-year Long -Term Street Maintenance Program that the engineering depailinent had compiled on all of the city's streets based on a PASER rating (the lower the PASER rating, the worse the road). Based on the Long -Term Street Maintenance Program, it was estimated that the highest priority projects averaged $2.2M over the first five years and increased after that. Of the estimated $2.2M, $500,000 would be funded from the General Fund and the remainder from the issuance of debt. The payment of said debt would be paid from an annual tax levy and assessment to benefiting parties. As the city will not be assessing 20% of the total bonded debt, the city cannot issue Special Assessment Bonds to fund road construction. Another alternative that was put in place in 2002 (for road reconstruction only) was the Street Reconstruction bond. Not until 2013 was the use of Street Reconstruction bonds allowed for overlays. Thus, the city is looking at issuing Road Reconstruction Debt for those projects (Garnet Street and overlay projects) as outlined for 2015 under the street maintenance plan and included in the City's 2015-2019 Capital Improvement Plan (CIP). There are requirements that need to be followed if the City desires to issue Road Reconstruction Plan Bonds. The requirements are: 1. A Five -Year Street Reconstruction and Overlay Plan (SROP) must be prepared. The City's five-year plan as presented, is based on the highest priority street projects that Engineering had outlined in their Long -Term Street Maintenance Program and which are also outlined in the City's 2015-2019 Capital Improvement Plan (CIP). 2. City Council must hold a public hearing on the issuance of the bonds and Street Reconstruction and Overlay Plan. Public Hearing was held on March 10, 2015. The major requirement to allow the city to issue this debt, is that the City Council must approve the sale of the street reconstruction