Title
AN ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF BONDS IN THE MAXIMUM PRINCIPAL AMOUNT OF $5,000,000 FOR THE PURPOSE OF PAYING COSTS OF IMPROVING CITY STREETS BY RECONSTRUCTING, RESURFACING, WIDENING, IMPROVING, GRADING, DRAINING, CURBING, PAVING, CONSTRUCTING STORM SEWERS AND RELATED DRAINAGE FACILITIES AND MAKING OTHER IMPROVEMENTS AS DESIGNATED IN THE PLANS APPROVED OR TO BE APPROVED BY COUNCIL, AND DECLARING AN EMERGENCY.
Executive Summary: This ordinance authorizes the issuance of $5 million in bonds to pay for the reconstruction of city streets on an accelerated basis over the next three years.
Body
Legislative History
None. The issue was discussed at the April 23 and again at the May 21 workshops.
Purpose & Explanation
The City has determined it is more cost effective to accelerate the reconstruction of 16.5 lane miles by issuing 10 year bonds. We will sell the bonds via competitive bidding. The estimated interest rate is 1.6%. The estimated annual cost would be $550,000.
Timing Considerations
Staff is requesting the ordinance be passed with emergency language to allow the road projects to proceed as soon as possible.
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends authorizing the issuance of $5 million road reconstruction bonds.
Submitted by,
Jeff Knoblauch, Finance Director