5.5. SR 10-13-2003 - Laserfiche WebLink

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Item ~5.5. M :MORANDUM TO: Mayor and City Council FROM: Lori Johnson, Finance Director DATE: October 13, 2003 SUBJECT: Consider Resolution Providing for the Sale of $1,795,000 G.O. Improvement Bond Series 2003A and Resolution Providing for the Sale of $2,020,000 G.O. Water Revenue and Refunding Bond Series 2003B Attached are two resolutions calling for the sale of bonds on November 10, 2003. The general obligation bond is being issued to £mance recent and upcoming infrastructure improvements including the following projects: Boston and Concord, 2003 Street Rehabilitation, 2002 Zane Street, and Cascade Industrial Park. The water revenue issue is to fund construction of well #8 as well as to refund the 1994D and 1993B water bonds. The refunding is being proposed to save on interest costs and to restructure the debt to better fit with the projected cash flow of the Water fund. More detail on both of these issues is included in the attached Pre-Sale Reports. Also attached is the levy schedule for the G.O. Improvement Bonds. A levy is required to pay for the 2003 Street Rehabilitation project share of the issue for taxes payable 2004 through 2006. The tax levy approved in September included $100,000 for this bond issue. Bond levies for this project total $239,156. Only the special assessment portion of the other projects is being financed; therefore, no levy is required for those projects. The Cascade Industrial Park improvements have been petitioned for by the developer and will be considered by the Council later in October. The developers have been made aware of the time line for financing and understand that the City is proceeding as requested. The Elk River Municipal Utilities Commission will be taking action on the 2003B Water Revenue Bond at its October 15 meeting. However, since Utility Commissions do not have authority to issue debt, the action taken by the ERMU is advisory only. The official action is taken by the City Council. Bryan Adams and Pat Hemza worked with Mark Ruff, Ehlers and Associates, to determine which water issues to refund and to develop the debt structure of the new financing and the refunding.