Two Special Improvement Districts (SIDs) were pooled together for a bond sale. SID 1382 will construct Colton Boulevard between 38th Street West and Zimmerman Trail, and SID 1397 will pave Treasure Drive from Donna Drive to the City High Ditch.

The City staff has been working with Montana Municipal Cooperative on the sale of the bonds. A bond purchase agreement has been signed. Council must adopt a resolution that outlines the terms and details of the bonds before they can be sold.

Upon approval of the resolution, the Finance staff  will proceed with the bond closing. If the Council does not approve the resolution there would be a delay in the closing and receiving the bond proceeds, which could lead to the inability to timely pay the contractor and stopping or slowing the project.

The term of the bonds are 15 years at an interest rate of 4.75%. 

The debt service payment will be made from the assessments on the affected properties. 

Staff recommends that City Council approve the bond resolution for Series 2015-SID 1382 and SID 1397.