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PUBLIC HEARING TO CONSIDER AMENDMENTS TO THE 2004-2008 <br />CAPITAL IMPROVEMENT PROGRAM AND AUTHORIZE THE ISSUANCE <br />OF GENERAL OBLIGATION CAPITAL IMPROVEMENT REFUNDING <br />BONDS <br /> By: Diana Lund, Finance Officer <br /> <br />Background: <br /> <br />In 1999, bonds were issued in the amount of $1,665,000 for the construction of a fire <br />station. Lease Revenue Bonds, via the EDA, were issued. As part of the 2003 legislative <br />session, Governmental units are now allowed to issue what is termed "Capital <br />hnprovement Bonds" to fund municipal projects such as City Halls, Fire Stations, Police <br />Stations, etc. The issuance of CIP bonds allows the City to retain a lower interest rate. <br />Generally, bonds issued by the City to finance capital improvements under an approved <br />capital improvement program are not subject to election requirements (referendum). <br />However, if within 30 days of the public hearing, a petition requesting a vote on the <br />issuance of the bonds is signed by a number of registered voters in the City equal to five <br />percent of the votes cast in the City's last general election, then the bonds may be issued <br />only after obtaining approval of a majority of voters voting on the question of whether to <br />issue the bonds. <br /> <br />For the City to take advantage of the CIP bond, the current Capital Improvement Program <br />(2004-2008) needs to be amended to include the fire station refinancing as a 2004 project. <br />Copies or' the amended pages to the 2004-2008 CIP are attached. <br /> <br />Due to present interest rates still being close to an all-time low, the City would save <br />approximately $138,000 in interest costs by refinancing the Lease Revenue Bond with a <br />General Obligation Capital Improvement Bond. <br /> <br />Recommendation: Staff recommends that Council adopt Resolution #04-09-XXX <br />approving the 2004-2008 Capital Improvement Plan, as amended, and the issuance of <br />General Obligation Capital Improvement Refunding Bonds. <br /> <br />Council Action: <br /> <br />Motion to authorize adoption of Resolution #04-09-XXX approving the 2004-2008 <br />Capital hnprovement Plan, as amended, and the issuance of General Obligation Capital <br />Improvement Refinancing Bonds. <br /> <br />-195- <br /> <br /> <br />