ADMINISTRATION - Joe Huss, Finance Director
Title
Awarding the sale of $9,510,000 General Obligation Improvement Bonds, Series 2021A; fixing their form and specifications; directing their execution and delivery; and providing for their payment
Executive Summary
The Council is asked to approve the sale of $9,510,000 of general obligation improvement bonds to finance 2021 pavement management projects.
Background
On March 15, 2021, the City Council approved Baker Tilly’s, the City’s Financial Advisor, recommendation to accept bids for the sale of $9,510,000 general obligation improvement bonds. The bonds are issued per MN Statutes, Chapters 429 and 475. Proceeds from the bonds will be used for to fund 2021 pavement management program (PMP) project costs related to public improvements that are funded in part by assessments against property owners. Those projects are:
• Improvement Project 19-16, Polk Street Area Reconstruction
• Improvement Project 21-06, Reconstruction of the following streets:
o Club West Parkway from 109th Avenue to Cloud Drive
o 105th Lane from National Street to Sunset Avenue
o Flanders Court from Radisson Road to 100th Court
o 100th Court from Flanders Court to cul-de-sac
o 93rd Lane Extension from approximately 250 feet east of Anoka County - Blaine Airport Gate A to 85th Avenue
o 131st Lane from Lincoln Street to Central Avenue
o 132nd Avenue from Jonson Street to Central Avenue
o 132nd Lane from Taylor Street to Central Avenue
• Improvement Project 21-07, 132nd Ave./Hastings Street Area Rehabilitation
• Improvement Project 21-08, 99th Avenue/101st Avenue Rehabilitation
The bonds are rated AAA by Standard & Poor’s and bids were due at 10:00 a.m. on April 19 and the resolution is correct as to form and final bid. 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
The city maintains a 20-year debt schedule that estimates annual tax levy requirements for the retirement of debt. This model is updated annually and actual debt service levies are adjusted based on current financial conditions. Debt levy projections are incorporated into the city’s overall tax levy projection model and the impact of debt levies on the city’s ability to levy to maintain general service levels is monitored. Required tax levies to be scheduled for this issue are below those of the original projected levies, thus providing the city greater flexibility when establishing and adopting future tax levies.
Public Outreach/Input
Pursuant to MN Statutes, Chapters 429 and 475:
• 03/15/21 Council Meeting -
o Public hearing to adopt the city’s Street Reconstruction Capital Improvement Plan, and
o Set sale of $9,510,000 General Obligation Bonds, Series 2021A for April 19, 2021
• 04/19/21 Council Meeting - Consider resolution awarding sale of General Obligation Bonds, Series 2021A
Staff Recommendation
Adopt the following resolution
Attachment List
Resolution
Body
RESOLUTION
(Attached)