5.2. SR 05-13-1996 - Laserfiche WebLink

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**ITEM 5.2.** :ty of E TO: FROM: DATE: SUBJECT: MEMORANDUM Mayor & City Council Lori Johnson, Assistant City Administrator May 13, 1996 Resolution Authorizing the Sale of and Setting the Sale Date for $2,655,000 G.O. Sewer Revenue Bonds and $500,000 G.O. Improvement Bonds The city is prepared to issue bonds for the Wastewater Treatment Plant expansion and the Hillside Crossing II public improvements. Attached is a copy of Springsted's Recommendations for the above-referenced issues. The resolution will be distributed Monday. The general obligation sewer revenue bonds will be paid from the net revenues of the sewer fund. As you will recall, sewer rates were increased in 1994 for the years 1994, 1995, and 1996 in anticipation of this expansion project. The city will need to monitor sewer rates and connection charges to ensure that sufficient net revenues are available to meet the fund's debt requirements. Please refer to Page 3 of the Recommendations for the details of the bond issue. As discussed during the audit presentation, sewer funds totaling $1,000,000 will be used to fund this project. The second issue is for public improvements to be installed in the Hillside Crossing II development. The developer has placed a letter of credit with the city for these improvements and has prepaid $150,000 of assessments. The project costs are approximately $596,000. Because the developer has requested in writing that the first special assessment payment be delayed until 1998, additional capitalized interest has been added to the bond issue. This bond issue totals $500,000. Action Requested The City Council is asked to approve the resolution authorizing the issuance of and setting the sale date of June 3 for $2,655,000 G.O. sewer revenue bonds, series 1996A and $500,000 G.O. improvement bonds, series 1996B. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425