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<br /> <br />City of Elk River <br />REQUEST FOR COUNCIL ACTION <br />Agenda Section Meeting Date <br />Administration November 6, 2006 <br />Item Description <br />Resolution Providing for the Sale of $3,220,000 General <br />Obli ation Ca ital 1m rovement Plan Bonds, Series 2006C <br /> <br />Item Number <br />5.5. <br /> <br />Prepared by <br />Lori ohnson, Ci Administrator <br />Reviewed by <br /> <br />Introduction <br />A public hearing has been held on the city's Capital Improvement Plan related to construction of a new <br />library and bids have been awarded for this project. The City Council is now asked to consider a <br />resolution providing for the sale of $3,220,000 General Obligation Capital Improvement Plan Bonds, <br />Series 2006C to [mance a portion of the construction of the library. <br /> <br />Discussion <br />At the March 13, 2006, worksession, the City Council agreed that approximately $1,500,000 from a <br />combination of library, government building reserve, and capital outlay funds would be used to pay for <br />the construction of the new library with the balance being funded through capital improvement plan <br />bonds. The attached resolution authorizes the sale of those bonds. The resolution includes a provision <br />that the debt service levy may be reduced annually by any amount available in reserve funds allocated for <br />the payment of the debt. At that March 13 worksession, the City Council also agreed to dedicate part of <br />the government buildings reserve funds to the payment of bonds. The debt service levy reduction will be <br />made on an annual basis at the time the tax levy is approved. <br /> <br />Financial Impact <br />Issue bonds with proceeds of approximately $3,150,000 for construction of the library with debt service <br />funded by annual tax levy and transfers from reserve funds. <br /> <br />Attachments <br /> <br />· Pres ale report <br />· Resolution Providing for the Sale of $3,220,000 General Obligation Capital Improvement Plan <br />Bonds, Series 2006C <br /> <br />Action Requested <br />Adopt the resolution providing for the sale of $3,220,000 General Obligation Capital Improvement Plan <br />Bonds, Series 2006C. <br />Council Action Motion by _ Second by _ Vote <br /> <br />Follow Up <br /> <br />S:\Council\Lori\2006\Bond Sale Library 110606.doc <br />