Agenda - Council - 06/26/2018 - Laserfiche WebLink

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Street Reconstruction Bonds. Jason Aarsvold from Ehler's and Associates, the City's financial consultant, will present the bid results on the night of June 26, 2018 as the Go Street Reconstruction bonds will be bid on earlier that afternoon by prospective bond buyers. The total bonded request, as noted above, is $1,210,000. The City had a bond rating call with Standard & Poor's (S&P) rating service on June 15, 2018. S&P assigned an AA+ rating to this issue and affirmed the City's rating of AA+ on prior issues. The current S&P rating report is attached. Notification: Ehlers and Associates, the City's financial consultant, has prepared a Presale Report of the Bond issue which is attached. The Pre -sale Report reflects the bond issuance in the amount of $1,210,000 with an all inclusive interest rate of 3.57% The term of the bond is for 10 years with the annual debt service of approximately $141,425. The payment of this debt will be funded via the annual property tax levy and a 25% assessment on benefiting properties. The first year of this levy will be for 2019 payable. Observations/Alternatives: #1: Motion to Adopt Resolution #18-121 authorizing approval of the sale of $1,210,000 GO Street Reconstruction Bonds, Series 2018A, #2: Motion to not Adopt Resolution #18-121 which would be rejecting the bonds of the bond sale Funding Source: The issuance of the Street Reconstruction Bonds (and a percentage from special assessments) will fund the reconstructions of Stanhope Terrace and River's Bend and overlays in the Northfork area. These street improvements were outlined in the Long -Term Street Maintenance Program and the 2015-2019 CIP. Recommendation: Staff recommends alternative #1 as the issuance of debt follows the direction that City Council authorized as the funding mechanism of how road reconstruction projects would be funded (with up to 25% being funded via special assessments). Action: Motion to Adopt Resolution #18-121 providing for the Issuance and Sale of $1,210,000 GO Street Reconstruction Bonds, Series 2018A Pledging Special Assessments and Levying a Tax for the Payment Thereof Attachments Presale Report $1,210,000 GO Road Recon Bond Reso #18-121 Sale of GO Recon Bonds S&P Rating Report Form Review Inbox Reviewed By Date Kurt Ulrich Diana Lund 06/21/2018 11:40 AM Diana Lund (Originator) Diana Lund 06/21/2018 11:43 AM Kurt Ulrich Kathy Schmitz 06/21/2018 01:33 PM Tim Gladhill Tim Gladhill 06/21/2018 02:52 PM Form Started By: Diana Lund Started On: 06/18/2018 08:45 AM Final Approval Date: 06/21/2018