PUBLIC HEARING - Joe Huss, Finance Director
Title
ADOPT 5-YEAR FACILITIES CAPITAL IMPROVEMENT PLAN AND AUTHORIZE THE ISSUANCE OF UP TO $4.2 MILLION OF CAPITAL IMPROVEMENT BONDS FOR THE RENOVATION OF CITY HALL
Background
Staff has prepared the attached 2019-2023 Facilities Capital Improvement Plan (CIP) pursuant to current City policies and State statutes. The plan outlines projected capital improvements to City facilities scheduled to take place over the next five years. In adopting the attached plan, Council is declaring its intention to proceed with the projects identified in accordance to the timing and use of funding sources as stated in the plan.
Included in the CIP is the City Hall renovation project which includes the completion of the third floor buildout and other first and second floor improvements at the City office building at 10801 Town Square Drive. It is proposed that this project be financed through the issuance of Capital Improvement (CI) bonds. CI bonds can be issued to fund the acquisition or betterment of public lands, buildings, or other improvements for the purpose of city hall, public safety, or public works facilities. The improvements must have an expected useful life of five years or longer. CI bonds cannot be used for light rail, park, library, road, or bridge facilities. Use of CI bonds is also limited to projects that are identified in a 5-year CIP that is approved by the city council at a public hearing. CI bonds are considered general obligations, the repayment of which would be backed by the full faith and credit of the issuer. Per state statutes, use of CI bonds requires the approval of at least two-thirds of the City Council after discussion at a public hearing, the notification of which must be published in the official city newspaper at least 14 but not more than 28 days prior to the hearing. The bonds are subject to a referendum if a petition requesting a vote on the issuance, signed by a number of voters equal to at least 5% of the votes cast in the last municipal election, is filed with the City Clerk within 30 days after the public hearing.
By adopting the attached resolution, Council is indicating its intent to order the project and finance it through the use of CI bonds, the amount of which will not to exceed $4.2 million. Approval to issue and sell the bonds will occur at a later date, as will the approval to proceed with actual construction of the facility.
Recommendation
Upon conclusion of the public hearing, adopt the following resolution.
Body
WHEREAS, the City Council of the City of Blaine, Minnesota (the "City") has proposed to issue its general obligation capital improvement plan bonds (the "Bonds") and adopt a capital improvement plan (the "Plan") pursuant to Minnesota Statutes, Section 475.521; and
WHEREAS, the City has caused notice of the public hearing on the intention to issue the Bonds and on the proposed adoption of the Plan to be published as required by law; and
WHEREAS, a public hearing on the intention to issue the Bonds and on the proposed Plan has been held on this date, following published notice of the public hearing as required by law; and
WHEREAS, in approving the Plan, the City Council considered for each project and for the overall Plan:
1. the condition of the City's existing infrastructure, including the projected need for repair and replacement;
2. the likely demand for the improvement;
3. the estimated cost of the improvement;
4. the available public resources;
5. the level of overlapping debt in the City;
6. the relative benefits and costs of alternative uses of the funds;
7. operating costs of the proposed improvements; and
8. alternatives for providing services more efficiently through shared facilities with other local governmental units; and
WHEREAS, a public hearing on the intention to issue the Bonds and on the proposed Plan has been held on this date, following published notice of the public hearing as required by law; and
WHEREAS, the City Council has determined that the issuance of general obligation capital improvement plan bonds in the aggregate principal amount of $4,200,000 is the best way to finance those projects eligible under Minnesota Statutes, Section 475.521.
NOW, THEREFORE, BE IT RESOLVED, that pursuant to Minnesota Statutes, Section 462.356, subd. 2, the Blaine City Council, by at least a two-thirds vote of all of its members, finds that the Plan and the improvements to be financed with the capital improvement plan bonds do not impact and do not have a relationship to the City’s comprehensive plan; the Plan and improvements are consistent with the City’s comprehensive plan; therefore, the Council dispenses with the requirements of Minnesota Statutes, Section 462.356, subd. 2 relating to planning commission review of the Plan and the improvements and hereby adopts the Capital Improvement Plan and authorizes the issuance of up to $4,200,000 of general obligation capital improvement plan bonds to finance certain capital improvements described in the plan.
PASSED by the City Council of the City of Blaine this 21st day of March, 2019.