4.1. SR 09-25-2000 - Laserfiche WebLink

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The total project cost for the East Elk River improvements is expected to be approximately $13,300,000. The final financing methods and revenue sources for this project are consistent with the financing proposals presented to the council throughout the project feasibility and numerous council discussions on the project whereby a portion of the street and storm sewer costs were to be funded by TIF 19 and other city revenue sources including, but not limited to, Capital Project reserves, Storm Sewer fund reserves, and tax levies. Approximately $725,000 of the 2000A issue is for eligible TIF 19 costs and tax increment will be used to fund that portion of the debt. The balance of the issue, $867,489, will be funded through Capital Project reserves, Storm Sewer fund reserves, and tax levies. This bond issue will require a tax levy that the city may cancel if other funds are available to meet debt service. As you may recall, no assessments were levied for the street and storm sewer portion of this project. More specific information on the amount of city funding required will be available after the project is completed. $1~275,000 G.O. Improvement Bonds Series 2000B - Western Area Phase IV This bond will finance the special assessment portion of this project. The state is a participant in this project and will pay its share of the street and intersection improvements and part is MSA eligible. $900,000 G.O. Improvement Refunding Bonds, Series 2000C - Refund 1992B Western Area Phase I Improvements $515,000 Taxable Tax Increment Refunding Bonds, Series 2000D - Refund 1989B TIF 6, Mork Clinic Project, and Refund 1990A TIF 7, AmericInn Project These three bonds are being refunded now to reduce costs of issuance since they can be spread among all four bonds being issued thereby reducing issuance costs for the refunding, which creates a larger savings. The 2000C refunding results in a net present value savings of $40,393.06 and the 2000D results in a $26,943.18 savings. Action Requested The City Council is asked to consider the attached resolution providing for the sale of the above mentioned bond issues.