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. . . Elk River City Council Meeting August 16, 1993 Page 2 related well and treatment facility. Water revenue bonds will be issued to finance those improvements. The total issue will be in the amount of $3,525,000 with $2,400,000 for special assessment improvement projects and $1,125,000 for water revenue projects. Lori Johnson explained that special assessments are pledged to the repayment of the improvement project debt, however, some of the assessments are deferred and some are the City's responsibility. She informed the Council that for this reason there are tax levies which may be due on this bond. She further stated that the water revenue portion of the bond will be financed by the future water connection and water access fees as well as the water rate revenue. Lori Johnson informed the Council that the Letter of Credit from Mississippi Oaks has not been received at this time; however, she has been in contact with bank and development representatives who think that the Letter of Credit will be available within the week. She stated that if the funds were not used for the Mississippi Oaks project, they could be used for another similar project. She informed the Council that the project could be pulled from this issue or the Council could proceed with the assumption that the Mississippi Oaks project will be completed on schedule. Councilmember Dietz questioned why the library expansion was not included in the General Obligation Bonds. Lori informed Councilmember Dietz that the library could be funded through a lease/purchase program or be put on a bond next year since the funds will not be needed until 1994. Lori Johnson informed the Council that the City is using permanent improvement revolving funds and this is the first time that they have used this type of fund. She indicated that the advantage is that this fund does not pledge special assessments specifically to the debt which allows special assessment prepayments to be used to fund other improvement projects. COUNCILMEMBER SCHEEL MOVED TO APPROVE RESOLUTION 93-36, A RESOLUTION INITIATING THE PROCESS FOR THE SALE OF THE CITY'S $3,525,000 GENERAL OBLIGATION PERMANENT IMPROVEMENT REVOLVING FUND BONDS, SERIES 1993. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4.2. Special Assessment Reapportionment Richard and Jean Kincanon Lori Johnson indicated that the City is requesting the Council to approve the reapportionment of special assessments for the Heritage Landing plat, Parcel 75-005-2101. She indicated that the balance remaining of the 1992 water trunk main and trunk sanitary sewer assessment is $134,227.69. COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE REAPPORTIONMENT OF ASSESSMENTS FROM PARCEL 75-005-2101 TO THE HERITAGE LANDING LOTS OWNED BY RICHARD AND JEAN KINCANON. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0.