Agenda - Council - 05/22/2018 - Laserfiche WebLink

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The City is now in its fourth year of funding road projects via the issuance of Street Reconstruction bonds. For year 2018, $1,210,000 (hard and soft costs) is proposed to be issued to fund the reconstructions of Stanhope Terrace and River's Bend, along with several overlay projects in the areas known as North Forty, Northfork Itasca and Northfork Oaks. The issuance of General Obligation Street Reconstruction Bonds will be used to fund the street reconstruction portion only of the project. Storm water utility costs related to any of the projects will be funded from the storm water utility fund. If authorized, The GO Street Reconstruction Bonds are scheduled to be sold the morning of June 26, 2018, with approval of the sale and terms brought forward to the City Council for their approval that same evening (June 26, 2018). 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 $1,210,000 with an all inclusive interest rate of approximately 3.57%. The term of the bond is for 10 years with the annual debt service averaging $141,425. 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 2018 payable. Observations/Alternatives: 1. Motion to Adopt Resolution #18-100 Approving the Issuance of General Obligation Street Reconstruction Bonds. #2. Motion to not Adopt Resolution #18-100 at this time. Funding Source: The issuance of Street Reconstruction Bonds (and a percentage from special assessments) will fund the reconstructions of Stanhope Terrace and River's Bend the the overlays of North Forty 2 &3, Northfork Itasca, Northfork 2 &3 and Northfork Oaks as outlined in the Long -Term 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 26, 2018 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 # 18-100 Providing for the Sale of $1,210,000 General Obligation Street Reconstruction Bonds. Attachments Presale Report $1,210,000 GO Road Recon Bond Reso #18-100 Form Review