Agenda - Council - 10/27/2020 - Laserfiche WebLink

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CC Regular Session Meeting Date: 10/27/2020 By: Diana Lund, Finance Information 6. 1. Title: Public Hearing on Issuance of General Obligation (GO) Capital Improvement Plan (CIP) Bonds & on Capital Improvement Plan & Adopt Resolution #20-253 Giving Preliminary Approval to the Issuance of GO Capital Improvement Plan Bonds in an Amount not to Exceed $ l OM and Adopting the City of Ramsey's Capital Improvement Plan (for GO CIP Bonding Projects only) for the Years 2020-2024. (In relation to funding for Public Works Campus). Purpose/Background: Purpose: To provide the funding mechanism for the construction of the Public Works Campus. Background: In 2003, the Minnesota State Legislature adopted a statute known as the "CIP Act" that allows cities to issue municipal bonds under a capital improvement plan without the usual referendum requirement (CIP bonds are subject to a reverse referendum. Whereby, if a petition (filed with the City Clerk) is signed by voters equal to at least five percent of the votes cast in the City in the last general election within 30 days after the public hearing regarding the bonds (October 27, 2020), the bonds may not be issued unless approved by the voters. The "CIP Act" applies to capital improvements consisting of city halls, public works and public safety facilities. The City used the CIP bonding method when it refinanced its Fire Station #1 bonds in 2004, Fire Station #2 in 2015 and refinanced the Municipal Center debt in 2012.. The Public Works Campus has been included in the city's regular Capital Improvement Plan (CIP) since 2006 with its funding source listed as the issuance of CIP debt (General Obligation debt) and several other sources noted under funding below. If the CIP calls for funding of the project to be provided by the issuance of General Obligation bonds, additional procedures must be followed: Council must hold a public hearing regarding the issuance of the bonds and the CIP bonded project - Public Works Campus. When a city issues GO CIP debt, they are required to have what is termed a five-year CIP adopted as part of this process that outlines the project to be funded. The CIP Plan for Years 2020 through 2024 that is deemed to be adopted tonight is different from the City's entire 2020-2029 CIP document that was recently adopted. The City's entire CIP includes all projects within the city: Buildings, Water, Sewer, Streets, that are proposed to be constructed over the 5-year time frame whereas the Five -Year CIP related to the GO CIP bonding has to include a special narration outlining only those projects that are to be funded via CIP debt. If authorized, the GO Capital Improvement Plan Bonds are scheduled to be sold the morning of December 8, 2020, with the approval of the sale and terms brought forward to the City Council for their approval that same evening (December 8, 2020). Notification: The public hearing notice was published in the Anoka County Union, as required, on October 16, 2020. Ehlers and Associates, the city's financial consultant, has prepared a Five -Year Capital Improvement Plan (for GO CIP Bonding Projects only) for the years 2020-2024 which outlines the CIP planning process that is a requirement of the "CIP Act". Stacie Kvilvang of Ehlers, will be present (remotely) at the meeting to answer any questions related to the Five -Year Capital Improvement Plan, Capital Equipment Plan Bonds and the process forward. It should be noted that the amount of the fire station project listed in the CIP document is higher-$10M than the bonded request amount of $9.935M. The CIP amount is at a higher amount to account for any unforeseen costs.