7.7. SR 12-21-2009 - Laserfiche WebLink

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REQUEST FOR ACTION To Item Number Ma or and Ci Council 7.7. Agenda Section Meeting Date Prepared by Administration December 21, 2009 Tim Simon, Finance Director Item Description Reviewed by Resolution Authorizing the Issuance of General Obligation Lori ohnson, Ci Administrator Bonds to Refund Existing Debt for Interest Cost Savings - Reviewed by Public Hearing Action Requested Approval of a resolution giving preliminary approval for the issuance of general obligation capital improvement plan bonds in an amount not to exceed $8,000,000 and adopting the City of Elk River, Minnesota, Capital Improvement Plan for 2010 through 2014 under Minnesota Statues, Section 475.521. Background/Discussion In 2003, the Minnesota State Legislature adopted Statute 475.521, referred to herein as the "CIP Act." The CIP Act applies to capital improvements consisting of city halls, public works, and public safety facilities. Throughout this discussion, the term "capital improvement" refers only to those improvements identified in the CIP act as summarized above and not the 2010-2014 Capital Improvement Plan previously discussed prior to this item. The City would exercise the purchase option under the lease agreement with the EDA to refund the 2002A Public Safety Building Lease Revenue Bonds and the 2002B City Hall Expansion Lease Revenue Bonds in/order to reduce city borrowing costs and eliminate the reserve requirement. The bond still maintains the special levy authority to levy the bond payments and does not change by making them G.O. bonds. The refunding of the bonds may occur in early 2010 or it may not occur unti12012. The public hearing and approval of the use of G.O. bonds will enable the City to react quickly when interest rates meet the City's parameters for savings. The CIP Act requires the City Council to consider eight factors in preparing the CIP: See pages 7-8 of the attached CIP plan. 1) Condition of the City's existing infrastructure, including projected need for repair and replacement. 2) Likely demand for the improvement. 3) Estimated cost of the improvement. 4) Available public resources. 5) Level of overlapping debt in the City. 6) Relative benefits and costs of alternative uses of funds. 7) Operating costs of the proposed improvements. 8) Alternatives for providing services most efficiently through shared facilities with other cities or local governments. C:\Documents and Settings\jmiller\Local Settings\Temporuy Internet Files\OLK3E\CIP for financing purposes.doc