ADMINISTRATION - Joe Huss, Finance Director/Asst. City Manager
Title
Awarding the sale of $13,590,000 General Obligation Improvement and Utility Revenue Bonds, Series 2022A; fixing their form and specifications; directing their execution and delivery; and providing for their payment
end
Executive Summary
The Council is asked to approve the sale of $13,590,000 of general obligation improvement bonds to finance 2022 pavement management projects.
Background
On October 3, 2022, the City Council approved Baker Tilly’s, the City’s Financial Advisor, recommendation to accept bids for the sale of $13,590,000 general obligation improvement and utility revenue bonds. The bonds are issued per MN Statutes, Chapters 429, 444, and 475. Proceeds from the bonds will be used to fund 2022 pavement management program (PMP) project costs related to public improvements that are funded in part by assessments against property owners as well as a utility lift station project. Those projects are:
• Improvement Project 22-04, Reconstruction of the following streets:
o 123rd Avenue from Buchanan Street to Ulysses Street
o 124th Court from West cul-de-sac to Buchanan Street
o 124th Court from West cul-de-sac to Pierce Street
o 124th Lane from Pierce Street to Buchanan Street
o Pierce Street from 123rd Avenue to 124th Lane
o Pierce Court from Pierce Street to east cul-de-sac
o Buchanan Street from Paul Parkway to 124th Lane
o 126th Avenue from Polk Street to Taylor Street
o 126th Lane from Taylor Street to Buchanan Street
o 127th Avenue from Taylor Street to Buchanan Street
o 127th Lane from Taylor Street to Central Avenue
o Polk Street from 125th Avenue to 126th Avenue
o Taylor Street from 126th Avenue to 129th Avenue
o Buchanan Street from 126th Avenue to 127th Lane
o 129th Avenue from 180. West of Isanti Street to Radisson Road
• Improvement Project 22-05, 89th Avenue and Davenport Area Street Reconstructions
• Lift Station 1 Modifications
• Improvement Project 22-06, Hidden Oaks Street Reconstructions
The bonds have been submitted for rating by Standard & Poor’s and bids were due at 10:00 a.m. on Monday, November 7. The resolution was correct as to form and the final resolution was presented to Council at the November 7 Council Meeting following the receipt of bids. A representative from Baker Tilly will be at the meeting to deliver the completed resolution and inform the Council of bid results and recommended Council action.
Strategic Plan Relationship
The issuance of debt to finance street improvements aligns with the City’s adopted strategic priorities of a well-maintained infrastructure and financial stability.
Board/Commission Review
The sale of bonds requires no action from advisory boards or commissions.
Financial Impact
Full financial impact will be known at the time Council approves the sale of the bonds, scheduled to take place November 7, 2022. Current estimates show the debt payments to be scheduled for this bond issue will be well within the estimates in the city’s 20-year debt schedule.
Public Outreach/Input
• 10/03/22 Council Meeting - Set sale of $14,100,000 General Obligation and Utility Bonds, Series 2022A
• 11/07/22 Council Meeting - Consider resolution awarding sale of General Obligation and Utility Bonds, Series 2022A
Staff Recommendation
Adopt the attached resolution
Attachment List
Resolution
Body
(Attached)
PASSED by the City Council of the City of Blaine this 7th day of November 2022.