HomeMy WebLinkAbout2010-08-11 PACKET 04.D.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA
MEETING ITEM # A q
DATE 8/11/10
PREPARED BY Finance Robin Roland
ORIGINATING DEPARTMENT DEPARTMENT HEAD
COUNCIL ACTION REQUEST
To adopt a resolution setting a Public Hearing for September 1, 2010 on the intention to issue
GO Capital Improvement Plan Bonds for the construction of a Public Safety /City Hall building.
STAFF RECOMMENDATION
To adopt a resolution setting a Public Hearing for September 1, 2010 on the intention to issue
GO Capital Improvement Plan Bonds for the construction of a Public Safety /City Hall building.
BUDGET IMPLICATION
BUDGETED AMOUNT
ADVISORY COMMISSION ACTION
DATE
❑ PLANNING
❑ PUBLIC SAFETY
❑ PUBLIC WORKS
❑ PARKS AND RECREATION
❑ HUMAN SERVICES /RIGHTS
❑ ECONOMIC DEV. AUTHORITY
SUPPORTING DOCUMENTS
® MEMO /LETTER:
® RESOLUTION:
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
❑ OTHER:
REVIEWED
El
El
El
ACTUAL AMOUNT
APPROVED
DENIED
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ADMINISTRATORS COMMENTS
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`,M �CityAdministrator Date
City of • •- Grove
Finance Department Memo
TO: Honorable Mayor and City Council
Ryan Schroeder, City Administrator
CA
FROM: Robin Roland, Finance Director
DATE: August 4, 2010
RE: Adopt Resolution calling for a Public Hearing to issue GO Capital Improvement
Plan Bonds
Introduction
Funding for the construction of a new Public Safety /City Hall facility is anticipated to come from
the issuance of General Obligation Capital Improvement Plan bonds. Statutes require a public
hearing take place prior to debt issuance.
Discussion
Cities may finance construction of Public Facilities using General Obligation (GO) Capital
Improvement Plan bonds. This debt instrument was available to Counties for many years prior
to 2003 when it became available to Cities. Minnesota State Statute Chapter 475 allows for
GO Capital Improvement Plan debt to be used to finance construction of City Hall, Public
Safety, Public works or Library facilities.
The statute requires that a public hearing be held to review a five year capital improvement
plan which includes the project to be bonded for. After the hearing, a thirty day reverse
referendum period allows for any potential challenge from taxpayers. Once the 30 day period
expires without a challenge, the debt may be issued at any time.
As previously presented, staff estimates the cost of the Public Safety /City Hall facility to be $17
million with approximately $5.3 million in cash available for project costs. The amount of debt
issuance anticipated would be $11.7 million and the bond sale is anticipated to take place in
2011 when construction bids on the project are received. Debt service payments on these
bonds would come from the City's tax levy.
City Council approval of the attached resolution calling a public hearing for September 1, 2010
on the intention to issue GO Capital Improvement Plan bonds.
RESOLUTION NO.
RESOLUTION CALLING PUBLIC HEARING ON THE INTENTION TO ISSUE GENERAL
OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS AND THE PROPOSAL TO ADOPT A
CAPITAL IMPROVEMENT PLAN
WHEREAS, pursuant to Minnesota Statutes, Section 475.521 the City of Cottage Grove
Minnesota (the "City ") may issue bonds to finance capital expenditures under its capital
improvement plan (the "Plan ") without an election provided that, among other things, prior to issuing
the bonds the City adopts the Plan after a public hearing thereon and publishes a notice of its
intention to issue the bonds and the date and time of a hearing to obtain public comment on the
matter, and
WHEREAS, the City Council will hold a public hearing on its intention to issue general
obligation capital improvement plan bonds and to adopt the Plan therefore pursuant thereto on
September 1, 2010.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Cottage Grove,
Minnesota, that the City Council hereby calls for a public hearing on its intent to issue the Bonds and
to adopt the Plan therefore, such hearing to be held on the date and time set forth in Exhibit A
attached hereto. The City Council is hereby directed to cause the notice to be published at least 14
but not more than 28 days before the hearing in the official newspaper of the City.
Adopted by the City Council of the City of Cottage Grove this _ day of 2010.
Myron Bailey, Mayor
Attest:
Caron M. Stransky, City Clerk
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I01A1131rL1
CITY OF COTTAGE GROVE, MINNESOTA
NOTICE OF PUBLIC HEARING
ON INTENTION TO ISSUE
GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS
AND PROPOSAL TO ADOPT A CAPITAL
IMPROVEMENT PLAN THEREFOR
NOTICE IS HEREBY GIVEN, that the City Council of the City of Cottage Grove, Minnesota will
meet on September 1, 2010 at 7:30 pm at the City Hall, 7516 80 Street South, Cottage Grove,
Minnesota for the purpose of conducting a public hearing on (a) the intention to issue general
obligation capital improvement plan bonds in an amount not to exceed $11,700,000 and (b) the
proposal to adopt a capital improvement plan therefor. The proceeds of the bonds will be used to
construct a new Public Safety /City Hall Facility pursuant to Minnesota Statutes, Section 475.521.
All persons interested may appear and be heard at the time and place set forth above.
If a petition requesting a vote on the issuance of the bonds is signed by voters equal to 5
percent of the votes cast in the last general election and is filed with the City within 30 days after the
public hearing, the bonds may only be issued upon obtaining the approval of the majority of the voters
voting on the question of issuing the bonds.
Individuals unable to attend the public hearing can make written comment by writing to the City
Clerk, City Hall, 7516 80 Street South, Cottage Grove, Minnesota, 55016. Written comments must
be received prior to the public hearing.
BY ORDER OF THE CITY COUNCIL
City Clerk
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