The Council approved a parameters resolution in June for the sale of bonds for the construction of storm drain improvements at the Shiloh Conservation Area.  The construction bids exceeded the limitation in the resolution, City Council rejected the bids and the sale was delayed.   

The Public Works department has revised the project to be within the budget limits.  Since June there has been an increase in interest rates which requires a revised resolution.  The maximum allowable interest rate would increase from 4.25% to 5.5%.  All other terms remain the same as in the original resolution and it allows the City to proceed with a negotiated sale with Piper Jaffray for the Series  2013 bonds. 

The City Council may:

• Approve the resolution and proceed with the project and sale of the bonds; or
• Not approve the resolution and postpone the project while an alternate financing option is found. 

The new debt service will be paid from the storm sewer operating fund.

Staff recommends that the City Council approve the resolution setting the parameters for the proposed Series 2013 Storm Sewer bond sale.