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V. FINANCING THE STREET RECONSTRUCTION PLAN
<br />The total amount of requested expenditures under the Street Reconstruction and Overlay
<br />Plan is approximately $9 million. If these expenditures are to be funded, that amount of
<br />money is anticipated to be generated through the tax levy and the sale of approximately
<br />$10,000,000 in bonds over the five-year period.
<br />In the financing of the Street Reconstruction Plan, one statutory limitation applies. Under
<br />Chapter 475, with few exceptions, cities cannot incur debt in excess of 3% of the assessor's
<br />estimated market value for the city. In the City the pay 2014 EMV is $1,795,975,400.
<br />Therefore, the total amount of outstanding debt cannot exceed $53,879,262. As of
<br />February 10, 2015 the City had $20,050,000 subject to the legal debt limit.
<br />Under the Street Reconstruction Plan, the City will secure $1,775,000 in general obligation
<br />bonds in the year 2015 to finance Garnet Street & 1681h Avenue reconstruction and overlay
<br />of streets in Hy -10 Ramsey, Northfork Highlands, Northfork Oaks, Northfork Point,
<br />Pondvale Estates, Pondvale Estates 2nd and Rolling Green. In the year 2016, general
<br />obligation bonds in the amount of $2,865,000 will be secured for the Andrie Street and
<br />164th Lane reconstruction and overlay of streets in AEC, Woodland Green and Sunwood
<br />Drive. In 2017, general obligation bonds in the amount of $995,000 will be used to finance
<br />reconstruction of Alpine Drive and overlay of streets in Rivers Bend. In 2018, general
<br />obligation bonds in the amount of $2,435,000 will be used to finance reconstruction of
<br />streets in Stanhope Terrace and North Forty and overlay of streets in Woodland Green,
<br />North Forty 2"d, Forth Forty 3rd, Northfork Oaks, Northfork, Northfork 2"d, Northfork 3rd
<br />and Northfork Itasca Shores. Finally in the year 2019, $1,440,000 in general obligation
<br />bonds will be secured for the financing of reconstruction of streets in Ford Brook Estates
<br />and overlay of streets in Brookview Estates, Meadow View, Flintwood Hills, Wood Pond
<br />Hills and Chestnut Ridge. All five general obligation bond issues will be repaid over a 10 -
<br />year period. The only exception is the road reconstruction portion of the 2016 bonds will
<br />be repaid over a 15 -year period due to the size of the project (approximately $2.325
<br />million). The par amount of each issue is based on the amounts listed in Appendix A plus
<br />estimated issuance costs. The proposed general obligation street reconstruction bonds
<br />(including issuance costs) are shown in Appendix B.
<br />Continuation of the Street Reconstruction and Overlay Plan
<br />This Street Reconstruction and Overlay Plan should be reviewed annually by the City
<br />Council using the process outlined in this Plan. It should review proposed expenditures,
<br />make priority decisions, and seek funding for those expenditures it deems necessary for the
<br />City. If deemed appropriate, the Council should prepare an update to this Plan.
<br />Ehlers & Associates, Inc. Page 4
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