Agenda - Council - 05/24/2016 - Laserfiche WebLink

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reconstruction portion only of the project. The costs related to over -sizing Andrie Street and 164th Lane (widening the street and increasing the pavement load carrying capacity) is not and cannot be included in this bonding request as Road Reconstruction bonds cannot be used for those items that did not previously exist prior to reconstruction. The only exception to the possible inclusion of non -prior existing items is if the city could justify that that the improvement has a substantial public safety function. The funding for the road widening will come from the excess road funds remaining from 2013 and currently held in the Road Reconstruction Fund. The balance of this account is approximately $350,000 as approximately $60,000 of this account was used on the Garnet Street Project for a sidewalk that did not qualify for road reconstruction debt last year. If authorized, The GO Street Reconstruction Plan Bonds are scheduled to be sold the morning of June 28, 2016, with approval of the sale and terms brought forward to the City Council for their approval that same evening (June 28, 2016). Notification: Ehlers and Associates, the City's financial consultant, has prepared a Presale Report of the Bond issue which is attached. The Presale Report reflects the bond issuance in the amount of $1,735,000 with an all inclusive interest rate of 2.27%. The term of the bond is for 10 years with the annual debt service of approximately $190,000. The payment of this debt will be funded via the annual property tax levy and a 25% assessment on benefitting properties. The first year of this levy will be for 2017 payable. Observations/Alternatives: # 1. Motion to Adopt Resolution # 16-05-092 Approving the Issuance of General Obligation Street Reconstruction Bonds #2. Motion to not Adopt Resolution #16-05-092 at this time Funding Source: The issuance of Street Reconstruction Bonds (and a percentage from special assessments) will fund the Andrie Street / 164th Lane Reconstruction and overlay improvements as outlined in the Long -Tenn Street Maintenance Program and the 2015-2019 CIP. Recommendation: Staff recommends Alternative # 1 as this is the authorization to issue debt with final approval of the acceptance of the bond sale terms at the City Council's regular June 28, 2016 meeting. The issuance of debt follows the direction that City Council authorized as the funding mechanism of how road reconstruction projects were to be funded (with a portion funded via special assessments). Action: Motion to Adopt Resolution # 16-05-092 Approving the Issuance of General Obligation Street Reconstruction Bonds Attachments Presale Report Reso #16-05-092 Approve Issuance of Street Recon Bonds