Construction bids were taken last year for Special Improvement District (SID) 1404.  This SID was for Annafeld Subdivision to construct public improvements in the subdivision that included street lights and a park.  Because the bids were too high for the park construction last year, PRPL rebid the project this spring.   Montana Municipal Cooperative purchased the bonds last year to finance the lighting project and have agreed to purchase the additional amount for the Parks project.  This resolution updates the information in the prior resolution passed on February 12, 2018. The details of the bond are also set in the resolution.

This is the final step of the bond sale. Once Council approves this resolution, the closing will take place on July 11, 2019 and the money will be disbursed to the project.

By doing a negotiated sale, the City eliminates the risk that the bonds may not be marketable in a public sale due to the relatively small size of the issue and it reduces the bond issuance costs. The term of the bond is 14 years with an interest rate of 5.24%.  The  property owners identified in the SID creation documents will be assessed yearly on their property tax bill, or have the option to pay the assessment in full.   

Staff recommends that the City Council approve the attached bond resolution, providing financing for the 1404 Special Improvement District project.