HomeMy WebLinkAbout2013-06-19 PACKET 04.K.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA
MEETING ITEM #
DATE 6/19/13 •
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PREPARED BY Finance Robin Roland
ORIGINATING DEPARTMENT DEPARTMENT HEAD
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COUNCIL ACTION REQUEST
Consider a resolution calling a Public Hearing on July 17, 2013 for the issuance of G.O.
Capital Improvement Plan Bonds following completion of construction of the Public Safety/City
Hall Facility.
STAFF RECOMMENDATION:
Adopt the resolution calling the Public Hearing.
BUDGET IMPLICATION
ADVISORY COMMISSION ACT
N/A
BUDGETED AMOUNT
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REVIEWED
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❑ PLANNING
❑ PUBLIC SAFETY
❑ PUBLIC WORKS
❑ PARKS AND RECREATION
❑ HUMAN SERVICES/RIGHTS
❑ ECONOMIC DEV. AUTHORITY
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SUPPORTING DOCUMENTS:
� MEMO/LETTER: Roland
� RESOLUTION:
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
� OTHER: Schedule
ADMINISTRATORS COMMENTS
DENIED
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Date
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COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER
N/A
ACTUAL AMOUNT
APPROVED
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H:\Council itemsSCC Action Form.doc
Cottage
� Grove
� Pride and Q�osperity Meet
To:
From:
Date:
Subject:
Mayor and City Council Members
Ryan Schroeder, City Administrator
Robin Roland, Finance Director
June 19, 2013
Adopt Resolution calling for a Public Hearing to issue GO Capital Improvement
Plan Bonds
Introduction
Statutes require a public hearing take place prior to issuance of General Obligation Capital
Improvement Plan Bonds.
Discussion
As previously presented, the Public Safety/City Hall facility cost $14.879 million and was
funded by a combination of cash and internal borrowing. In December 2011 when the internal
borrowing was approved by the Council, staff identified that an 18 month window existed
subsequent to the completion of construction wherein the City could opt to issue Capital
Improvement Plan bonds to replace all or part of the internal borrowing, should circumstances
change, such as the imposition of levy limits.
The City is currently within the aforementioned 18 month period. Staff proposes that
consideration be given to the issuance of G.O. Capital Improvement Plan bonds in order to
maintain flexibility during the 2014 levy and budget discussion.
Since the statute (MN Section 475) requires that a public hearing is held to review a five year
capital improvement plan which includes the project to be bonded for, staff is proposing a
hearing date of July 17, 2013. 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. The timeline for debt issuance is included with
this memo.
Requested Action
City Council approval of the attached resolution calling a public hearing for July 17, 2013 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 July
17, 2013
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 19 day of June, 2013.
Myron Bailey, Mayor
Attest:
Caron M. Stransky, City Clerk
PNe-Sale Schedule dated May 29, 2013
S-Ye�cN Czty Capital Imp�ovement Plc�n Boncl Issuance
Czty of Cottage G�ove, Minnesota
The City Council must take the following actions before Bonds can be issued:
City Council directs preparation of a 5-Year Capital Improvement Plan.
City Council conducts a Public Hearing on the Capital Improvement Plan and the issuance of Bonds.
City Council approves Bonds and Capital Improvement Plan and the issuance of Bonds by at least a 3/Sths vote
of the governing body membership.
The table below lists the steps in the issuing process:
06/19/2013 City Council adopts Resolution calling for Public Hearing on issuance of Bonds and on Capital
Improvement Plan and the issuance of Bonds.
06/26/2013 Close date to get Notice of Public Hearing on issuance of Bonds and on Capital Improvement Plan to
off'icial newspaper far publication. [South Washington County Bulletin publication deadline, June 26,
2013 at 5: DO P.M.J
07I03/2013 Publish Notice of Public Hearing on the Capital Improvement Plan and the issuance of Bonds
(publication no more than 28 days and no less than 14 days prior to hearing date). Additionally, notice
may be posted on the City's official web site, if any.
7/17 @ 7:30 pm City Council holds Public Hearing on the Capital Improvement Plan and the issuance of Bonds and
adopts Resolution approving Capital Improvement Plan a giving preliminary approval for their
issuance by at least a 3/Sths vote of the goveining body membership.
7/17/2013 City Council calls for sale ofBonds.
8/16/2013 Reverse referenduin period ends (30 days after the public hearing).
9/04/2013 City Council accepts bid for Bonds and adopts Resolution-Awarding the sale of Bonds.
1 0 /212 0 1 3 Tentative closinglreceipt of funds.
Prepared by:
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