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<br /> <br />City of Elk River <br />REQUEST FOR COUNCIL ACTION <br />Agenda Section Meeting Dete <br />_A.dministration Au ust 21, 2006 <br />Item Description <br />Resolution Giving Preliminary Approval for the Issuance of <br />General Obligation Capital Improvement Plan Bonds in an <br />_Amount not to Exceed $5 million and Adopting the City of Elk <br />Ri'ler Ivfinnesota Ca ital 1m rovement Plan, Public Hearin <br /> <br />Item Number <br />6.1. <br /> <br />Prepared by <br />Lori ohnson, Ci T ...A.dministrator <br />Reviewed by <br /> <br />Introduction <br />.1.\ public hearing has been called to consider the city's Capital Improvement Plan for the purpose of <br />issuing Capital Impro\Tement Plan Bonds for construction of a new library. This is a public hearing to <br />provide an opportunity for the public to comment on the municipal facility improvements included in the <br />Capital Improvement Plan. <br /> <br />Discussion <br />The modification to the fi.\Te-year Capital Improvement Plan for the City of Elk Ri\Ter relating to the <br />expansion of municipal facilities includes the possibility of issuing up to $5,000,000 for expansion of the <br />libraly beginning in 2006 with completion in 2007. The City Council approved a budget of $4,300,000 <br />for the consnuction of the library. Bonds "Will be issued only in the amount necessary to cov"'er the actual <br />costs. The bond "Will be less than $4,300,000 as up to $1,500,000 is being funded through reser,\res. <br /> <br />The Capital ImprO\Tement Plan modification also includes $3,000,000 for the consuuction of a public <br />,-vorks facility in 2008. This number "vas included as an estimate only and the actual cost for the <br />expansion and the time frame \\till be identified through the preparation of a Public Works Master Plan <br />being prepared by Oertel Architects. However, including it now allows the city to issue bonds in 2008 for <br />the public \V~orks facility v:rithout another public hearing if the project cost is less than $3,000,000. <br /> <br />The city has considered and commented on the eight items required by statute to be discussed as part of <br />the Capital Impro\Tement Plan. Issuance of bonds is subject to a thirty da;r re\Terse referendum after the <br />public hearing. Bonds for this project "Will not be issued until after the Council awards the construction <br />bids. <br /> <br />Financial Impact <br />-L\doption of the resolution authorizes the city to issue $5,000,000 of bonds for the library. l\. property <br />tax may be levied for the payment of the bonds. <br /> <br />s: \ Council \Lori \2006 \ elP Public Hearing. doc <br />