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Item 1.M.
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| City Council Regular | |
| Date: | 08/28/2023 |
| Title: | Bond Resolution for Pooled Series 2023 Special Improvement Bonds |
| Presented by: | Andy Zoeller, Finance Director |
| Department: | Finance |
| Presentation: | No |
| Legal Review: | Not Applicable |
| Project Number: | 1411, 1419 and 1423 |
RECOMMENDATION
Staff recommends City Council approve the bond resolution for Special Improvement Districts (SIDs) 1411, 1419, and 1423.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
On June 14th, 2021, the Council approved the resolution ordering improvements for SID 1411. As part of the budgeted gravel street paving program, the City will contribute to the cost of the paving, curb and gutter, and minor drainage improvements for SID 1411. The remaining costs will be assessed to the property owners in the district.
SID 1419 will construct curb and gutter, asphalt pavement, drive approaches, and new storm drain infrastructure on Charles Street. The cost of the improvements will be assessed to the adjacent property owners. As part of the project, the City will replace the existing water main, which requires frequent repairs due to main breaks, and is undersized and outdated. The City will also replace the outdated clay tile sewer main. These improvements will be paid by street maintenance 2 funds, water funds, and sewer funds.
SID 1423 was approved by council on June 12, 2023. This project will install streetlights along each street frontage at Annafeld Subdivision, 4th Filing. The streetlights will be maintained by the Homeowners Association until all of Annafeld Subdivision is completed. At that point, a Special Improvement Light Maintenance District (SILMD) will be created for maintenance.
The City has been working with First Interstate Bank for the purchase of the bonds. Once the resolution has been approved, the closing will take place and the bond proceeds will be disbursed to the construction accounts.
SID 1419 will construct curb and gutter, asphalt pavement, drive approaches, and new storm drain infrastructure on Charles Street. The cost of the improvements will be assessed to the adjacent property owners. As part of the project, the City will replace the existing water main, which requires frequent repairs due to main breaks, and is undersized and outdated. The City will also replace the outdated clay tile sewer main. These improvements will be paid by street maintenance 2 funds, water funds, and sewer funds.
SID 1423 was approved by council on June 12, 2023. This project will install streetlights along each street frontage at Annafeld Subdivision, 4th Filing. The streetlights will be maintained by the Homeowners Association until all of Annafeld Subdivision is completed. At that point, a Special Improvement Light Maintenance District (SILMD) will be created for maintenance.
The City has been working with First Interstate Bank for the purchase of the bonds. Once the resolution has been approved, the closing will take place and the bond proceeds will be disbursed to the construction accounts.
ALTERNATIVES
There are no viable alternatives because an agreement has been made with First Interstate Bank to purchase the bonds.
FISCAL EFFECTS
The term on the bonds is 15 years with an interest rate of 6.43%. The property owners identified in the documents ordering the improvements will be assessed for principal and interest cost of the bonds on their property tax bills.