Agenda - Council - 10/11/2022 - Laserfiche WebLink

Home

Like a Capital Improvement bond, the Street Reconstruction bond is not required to have a referendum, but is subject to a 30-day reverse referendum after the public hearing. If a petition bearing the signature of at least 5 percent of the votes cast in the last general election is filed with the City Clerk within 30 days after the public hearing regarding the bonds (November 11, 2022) the bonds may not be issued unless approved by voters. The City's preliminary levy that was adopted September 27, 2022, included an estimated annual debt levy of $1,145,607 that was applicable to this bond being sold to fund approximately $12M of City street reconstruction and overlay projects. When sold, if the annual debt levy is determined to be higher than the $1,145,607 the levy amount for 2023 cannot be increased, but the remaining 14 years of annual levies would offset the difference. If authorized, the GO Street Reconstruction Bonds are scheduled to be sold the morning of November 15, 2022, with approval of the sale and terms brought forward to the City Council for their approval that same evening of November 15, 2022 for which a special City Council meeting will be held. The original sale date was to be December 13, 2022, but due to possible additional interest rate increases the sale date was moved up. Notification: The City Council authorized the calling of the public hearing for the intention to issue GO Street Reconstruction Bonds and the proposal to adopt a street reconstruction plan at its regular meeting of September 27, 2022. Ehlers and Associates, the city's financial consultant, has prepared a Five -Year Street Reconstruction Overlay Plan (SROP). This document was based on the 2023-2027 street reconstructions and overlays depicted in the city's draft 2023-2032 Capital Improvement Plan (CIP) that was prepared by the City's Engineering department. The Five -Year Street Reconstruction Overlay Plan (SROP) is required by State Statute as it outlines only those projects that bond funds may be spent on. The total estimated costs of these projects is $24.3M and thus the Plan is written that the City may issue Street Reconstruction Bonds not to exceed $25M. The City is proposing to issue $12M of this amount. Having the Five -Year Plan allows that if in the future the city desires to issue any debt for the other projects included in the SROP and up to $13M in debt issuance ($25M allowance - $12M current request) a public hearing and new plan do not need to be created. Time Frame/Observations/Alternatives: The Five -Year Street Reconstruction and Overlay Plan 2023-2027 shows bonding schedules for each of these respective years. Statute states that a Five -Year plan must be produced outlining projects and costs for the next five years. If the city does not wish to follow this schedule (with the projects that are listed) over the next five years a new five-year plan will need to be devised. For example, if projects A-E are included in the five-year plan and the city wishes to do project F instead of B, the plan needs to be amended and the public hearing process will need to be undertaken again on the revised plan. #1. Motion to Adopt Resolution #22-237 Adopting the Street Reconstruction Plan and Approving the Issuance of General Obligation Street Reconstruction Bonds (5-Year Plan Requirements) and Motion to Adopt Resolution #22-238 Providing the Sale of $12,075,000 General Obligation Street Reconstruction Bonds #2. Motion to not Adopt Resolutions #22-237 and #22-238 at this time. Funding Source: The issuance of Street Reconstruction Bonds will fund the street reconstructions and overlay as outlined in the 5-Year Plan (from which was taken from the city's draft 2023-2032 CIP). Recommendation: