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approximately $895,000. <br />The issuance of General Obligation Street Reconstruction Bonds will be used to fund the street <br />reconstruction portion only of the project. Storm water utility costs related to either of the projects <br />will be funded from the storm water utility fund. <br />If authorized, The GO Street Reconstruction Bonds are scheduled to be sold the morning of <br />July 25, 2017, with approval of the sale and terms brought forward to the City Council for their <br />approval that same evening (July 25, 2017). <br />Notification: <br />Ehlers and Associates, the City's financial consultant, has prepared a Presale Report of the Bond issue which is <br />attached. The Presale Report reflects the bond issuance in the amount of $895,000 with an all inclusive interest rate <br />of approximately 3%. The term of the bond is for 10 years with the annual debt service averaging $95,000. The <br />payment of this debt will be funded via the annual property tax levy and a 25% assessment on benefitting <br />properties. The first year of this levy will be for 2018 payable. <br />Observations/Alternatives: <br />1. Motion to Adopt Resolution #17-06-158 Approving the Issuance of General Obligation Street Reconstruction <br />Bonds <br />#2. Motion to not Adopt Resolution #17-06-158 at this time <br />Funding Source: <br />The issuance of Street Reconstruction Bonds (and a percentage from special assessments) will fund the Sunwood <br />Drive and Alpine Drive Road Reconstructions as outlined in the Long -Term Street Maintenance Program and the <br />2015-2019 CIP. <br />Recommendation: <br />Staff recommends Alternative # 1 as this is the authorization to issue debt with final approval of the acceptance of <br />the bond sale terms at the City Council's regular July 25, 2017 meeting. The issuance of debt follows the direction <br />that City Council authorized as the funding mechanism of how road reconstruction projects were to be funded (with <br />a portion funded via special assessments). <br />Action: <br />Motion to Adopt Resolution #17-06-158 Providing for the Sale of $895,000 General Obligation Street <br />Reconstruction Bonds <br />Reso #17-06-158 <br />Presale Report $895,000 GO Road Recon Bond <br />Attachments <br />Form Review <br />Inbox Reviewed By Date <br />Kurt Ulrich Kurt Ulrich 06/22/2017 11:00 AM <br />Diana Lund (Originator) Diana Lund 06/22/2017 02:19 PM <br />Form Started By: Diana Lund Started On: 05/31/2017 03:08 PM <br />Final Approval Date: 06/22/2017 <br />