7.7. SR 12-21-2009 - Laserfiche WebLink

Home Browse Search

The CIP Act requires the City Council to consider eight factors in preparing the CIP: 1. Condition of the City's existing infrastructure, including projected need for repair or 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. The City has considered the eight points as they relate to acquisition of the Buildings through issuance of refunding bonds. -The findings are as follows: Conditions of City Infrastructure and Need for the Projects The Buildings currently exist, but the City has determined that it is financially prudent to acquire those facilities from the EDA. Other than such acquisition, the City does not anticipate further repair or replacement of the Buildings in the 2010 through 2015 period. Demand for Projects As noted above, the Buildings currently exist. Acquisition of the existing leased facilities is prudent in order to reduce City borrowing costs. Estimated Cost of the Projects By issuing CIP Bonds that will refund the Series 2002A and Series 2002B Bonds, the City expects to achieve a net present value savings of at least 3% of refunded principal, as well as eliminate the need for a reserve fund. Availability of Public Resources The CIP Bonds for acquisition of the Buildings would be paid with ad valorem taxes and any net revenues from water and electric revenues of the ERMU, as are the lease payments that currently secure the Series 2002A and Series 2002B Bonds. However, the CIP Bonds will be additionally secured ------ City of Elk River CIP for Financing Purposes Page 7