HomeMy WebLinkAbout09A 2023A General Obligation and Tax Abatement Bonds
To: Mayor and City Council Members
Jennifer Levitt, City Administrator
From: Brenda Malinowski, Finance Director
Date: March 15, 2023
Subject: $8,170,000 General Obligation and Tax Abatement Bonds, Series 2023A
INTRODUCTION
Funding is necessary to finance the Glacial Valley Park building and the 2023 Pavement
Management project. This funding was identified in both the 2023-2027 Capital Improvement
Plan and the Financial Management Plan.
DISCUSSION
The 2023A Bonds will be used to finance the following projects:
Glacial Valley Park building
Pavement management project
The bonds will be repaid with special assessments and future property tax levies. These future
tax levies were included in the Financial Management Plan that was presented earlier this year.
The bonds for Glacial Valley Park building will be funded with abatement bonds. Cities have the
authority under Minnesota Statute 469 to issue these bonds. In order to grant tax abatement,
the City is required to hold a public hearing on the amount of the abatement to be granted,
identify the properties from which they will abate the City’s portion of the taxes, and describe the
public purpose of the tax abatement. This is the same process that was used in 2016 for the
issuance of bonds for the ice arena.
ACTION REQUESTED
1. Hold the public hearing for property tax abatements in connection with the issuance of
tax abatements bonds for the purpose of constructing a park building at Glacial Valley
Park.
2. Review Pre-Sale report and Adopt Resolution 2023-041, Providing for the sale of the
$8,170,000 General Obligation Improvement and Tax Abatement Bonds, 2023A.
3. Adopt Resolution 2023-042, Approving the property tax abatements.