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HomeMy WebLinkAbout8 Preliminary Approval for the Issuance of City's General Obligation Capital Improvement PlanCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION City Council Meeting Date: April 5, 2005 AGENDA ITEM: Preliminary Approval for the Issuance of the City's General Obligation Capital AGENDA SECTION: Improvement Plan Bonds and Adopting Public Hearing the City of Rosemount's Capital Improvement Plan PREPARED BY: Dawn Weitzel, Assistant City AGENIr Administrator ATTACHMENTS: Resolution, Capital Improvement Plan, APPROVED BY: Tax Impact Worksheet RECOMMENDED ACTION: Motion to adopt a RESOLUTION GIVING PRELIMNARY APPROVAL FOR THE ISSUANCE OF THE CITY'S GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS IN AN AMOUNT NOT TO EXCEED $2,630,000 AND ADOPTING THE CITY OF ROSEMOUNT, MINNESOTA CAPITAL IMPROVEMENT PLAN. ACTION: BACKGROUND Fire Station #2 has been anticipated in the City's capital improvement plans for eight years. Originally scheduled to open in 2000, it was delayed until the street network and population increase on the east side warranted the need for a satellite station. While the greatest benefit of this station will be to provide an improved response time in situations, an additional advantage is that it will also serve as an emergency operations center in the case of crisis anywhere in the community. As part of the financial procedures in the construction of Fire Station #2 the City must conduct a public hearing on the proposal to approve the issuance of general obligation capital improvement plan bonds and to adopt the City's Capital Improvement Plan (CIP) The City's CIP plan was approved in November of 2004 but to follow the guidelines of the statutes regarding CIP bonds the plan must be approved with a public hearing. The bonds will be set in an amount not to exceed $2,630,000. In May the final rating of the bonds will take place, the architect will complete the initial design development and forward it to the City for planning review, and Council has set a special meeting on May 24th at 6:30 P.M. for the consideration of the sale and award of the bonds. SUMMARY It is requested that City Council approve the Resolution Giving Preliminary Approval for the Issuance of the City's General Obligation Capital Improvement Plan Bonds in an Amount not to Exceed $2,630,000 and Adopting the City of Rosemount, Minnesota Capital Improvement Plan. CITY OF ROSEMOUNT COUNTY OF DAKOTA STATE OF MINNESOTA RESOLUTION 2005 RESOLUTION GIVING PRELIMINARY APPROVAL FOR THE ISSUANCE OF THE CITY'S GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS IN AN AMOUNT NOT TO EXCEED 52,630,000 AND ADOPTING THE CITY OF ROSEMOUNT, MINNESOTA CAPITAL IMPROVEMENT PLAN WHEREAS, the City Council of the City of Rosemount, Minnesota (the "City") proposes to issue its general obligation capital improvement plan bonds (the 'Bonds") and adopt a Capital Improvement Plan (the "Plan"), and WHEREAS, the City has caused notice of the public hearing on the intention to issue the Bonds and on the proposed adoption of the Plan to be published pursuant to and in accordance with Minnesota Statutes, Section 475.521, and WHEREAS, a public hearing on the intention to issue the Bonds and on the proposed Plan has been held on this date, following published notice of the public hearing as required by law; and WHEREAS, in approving the Plan, the City Council considered for each project and for the overall Plan: 1. The condition of the City's existing infrastructure, including the projected need for repair and replacement; 2. The likely demand for the improvement; 3. The estimated cost of the improvement; 4. The available public resources; 5. The level of overlapping debt in the City; 6. The relative benefits and costs of alternative uses of the funds; 7. Operating costs of the proposed improvements; and 8. Alternatives for providing services more efficiently through shared facilities with other local governmental units; and WHEREAS, the City Council has determined that the issuance of general obligation capital improvement bonds in the aggregate principal amount of $2,630,000 is the best way to finance a portion of those portions of Plan eligible under Minnesota Statutes, Section 475.521. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rosemount, Minnesota, that the City hereby adopts the Plan and authorizes the issuance of up to $2,630,000 aggregate principal amount of general obligation capital improvement bonds. u5ai2avi ADOPTED by the City Council this 5v' day of April, 2005. William H Droste, Mayor Attest: Linda Jentink, Secretary Motion by: Seconded by: Voted in favor: Voted Against: Members Absent: 175012010 2 2005 CERTIFICATE STATE OF MINNESOTA ) COUNTY OF DAKOTA ) ss CITY OF ROSEMOUNT ) I, Linda J. Jentink, duly appointed, acting and qualified City Clerk of the City of Rosemount do hereby certify that I have examined the City of Rosemount records and the Minute Book of said City for the meeting of the 5th of April, 2005 and that the attached copy of the Resolution 2005_ A RESOLUTION GIVING PRELIMINARY APPROVAL FOR THE ISSUANCE OF THE CITY'S GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS IN AN AMOUNT NOT TO EXCEED $2,630,000 AND ADOPTING THE CITY OF ROSEMOUNT, MINNESOTA CAPITAL IMPROVEMENT PLAN was approved and is a true and correct copy of the City Proceedings relating to said Resolution. IN WITNESS WHEREOF, I have hereunto set my hand and seal of said City this 50' day of April, 2005. Linda J. Jentink, City Clerk City of Rosemount Dakota County, Minnesota ir5m2ai 3 10 -YEAR CAPITAL IMPROVEMENT PLAN (CIP) BACKGROUND Historically, the City of Rosemount has usually had some form of 5 -year CII' in place to utilize for its capital improvements. There have been times where ,lust a single year's capital improvements have been addressed and funded. As the City continues to grow, we believe that the careful development and continuous utilization of a realistic Capital Improvement Plan is essential to the proper management of the City. As we looked at developing a new 5 - year CIP, it became apparent that the dilemma that the City of Rosemount faces is one of continued growth combined with restoration/reconstruction of the older portions of our city. This being the case, it was almost impossible to develop a plan for a 5 -year period that was very realistic. As work continued on the plan, we decided to explore the possibility of looking out farther and developing a longer plan that would more realistically allow us to plan for the City's future. What has evolved is the following 10 -year Capital Improvements Plan. We believe that great strides have been made to more accurately plan for the future of the City of Rosemount. This document is only a working guide that is utilized by the City Council and its staff to prepare for the future. The first year of the plan will be included as part of the formal budget that is prepared yearly as part of our Truth -m -Taxation process with the following years developed as a working tool for future years' discussions. GENERAL/ADMINISTRATIVE DESCRIPTION The CIP provides for specific funding of items, the nature of which is not considered "current" in their use or life expectancy. These items are generally of a higher estimated cost than $5,000 and will have a life expectancy of 3 years or greater. The source of funding for these expenditures is typically the general tax levy. In some instances, other funding is utilized. For example, beginning in 1996, revenues received from user fees are being designated in various CIP funds for capital improvement/equipment purchases. If these revenues are realized, the equipment or project will be completed and if the revenue is not realized the equipment will not be purchased. Individual departments are designated for each item proposed for purchase in this plan. TYPES OF CAPITAL IMPROVEMENT FUNDS Another area of change for the CIP is the implementation of three separate funds to isolate and better track the types of capital improvements being planned for. The following briefly describes each of the three: Building CIP Fund - This fund is used to account for the on-going capital improvements and possible additions to government buildings. Street CIP Fund - This fund is used to account for the on-going street construction and reconstruction projects within the City and all other major maintenance items related to both paved and unpaved streets including, but not limited to, street lights, signal lights, sidewalks and gravel road resurfacing. 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Annual Levy $219,371 Less Exulting Levy $0 Increase $219,371 200516 TNTC $21,695,869 TeX Rate Increase (b) 1.011 Homestead Residential 80 $ 136,000 $ 150,000 Estimated 200512000 15 Market Net Tax 2,000 Value (a) Capacity 250,000 Homestead Residential 80 $ 136,000 $ 150,000 1,500 15 200,000 2,000 20 250,000 2,500 25 300,000 3,000 30 Commercia Illn d ustria I $100,ODO $ 1,500 $ 15 150,000 2,250 23 250,000 4,250 43 500,000 9,250 94 1,000,000 19,250 195 Apartments (4 or More Units) $ 50,000 $ 625 $ 6 75,000 938 9 100,000 1,250 13 200,000 2,500 25 500,000 6,250 63 Agricultural Homestead Value per Acre $ 1,700 Dwelling Est Market c Acres Total EMV (d) $ 100,000 80 $ 236 000 160 372,000 320 644,000 640 1,188,000 Agricultural Non -Homestead Net Tax Capacity $ 1,756 2,504 4,000 9,180 Acres Total EMV (d) 80 $ 136,000 $ 160 272,000 320 544,000 640 1,088,000 Net Tax Ca ao 1,360 2,720 5,440 10,880 18 25 40 93 14 28 55 (a) Estimated market value is the basis from which the net tax capacity is calculated This value is not necessarily the price the property would bring if sold (b) The tax rate increase is derived by dividing the average debt service by the taxable net tax capacity The dollar increase in taxes payable is derived by multiplying the net tax rapacity by the tax capacity rate increase (c) Includes house, garage and one acre with an estimated market value of $100,000 00 (d) Estimated value per tillable acre is $1,700 00 Note Changes in interest rates, timing or size of the bond issue may cause significant alterations of this information Springsted The Rosemount Town Pages AFFIDAVIT OF PUBLICATION STATE OF MINNESOTA) )SS. COUNTY OF DAKOTA ) Chad Richardson, being duly sworn, on oath says that he is an authorized agent and employee of the publisher of the newspaper, known as The Rosemount Town Pages, and has full knowledge of the facts which are stated below, (A) The newspaper has complied with all of the requirements constituting qualification as a legal newspaper, as provided by Minnesota Statutes 311A 02, 331A 07 nd other a 1 ab aws, as amended., SB) The printed ( , - Ii Q, I =SE XC( () /�... _ . which is attached, was cut from the columns of ss, newspaper, and was printed and published once each week for successive weeks, It was first published on Thursday, the day of Ma 1 2005 and was thereafter printed and published on every Thursday, to and including Thursday, the day of 2005, and printed below is a copy of the lower case alphabet from A to 6, both inclusive, which is hereby acknowledged as being the size and kind of type used in the composition and publication of the notice abcdefgNJklmnoprysmvwxyz By y Subscribed and swom to before me on this `1 ✓ r day of i t � Notary Publi6 DAWN M. SMITH AFFIDAVIT .y. NOTARY PUBLIC -MINNESOTA My COmmWhM EXPIM Jen 31, 2010 First Insertion: '�!Als10� File # 3C�R7:)_EQIC inches, @$Lj, ain= E&Sa Additional Insertions: inches, @$----Jin-- Affidavit $_Jin= Affidavit fee $ Total $ss, CITY OF ROSEMOUNT NOTICE OF A PUBLIC HEARING ON A PROPOSAL TO ADOPT A CAp,,d, IMPROVEMENT PLAN AND THE ISSDA,NCE OF GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS TOIVROM IT MAY CONceaty- NOTICE IS HEREBY GIVEN, Nat the Conned of the City of Rosemount, Mutations, will meet on April 5, 2005 at 7 30 p an in the Conrad Chambers at the City Heli, 2875 145 Street West, Rosemount, Mhwuom, for the purpme of condmdmg a public hwnng un a proposal to adapt a taptal imprme sent plan and approve due issuance of general obligate t capital ,mprovemem plan bonds in the principal amount not m exceed 52,630000 All persons bre oiled may appear and be heard as 0w, ume and pl,wo set form above If a peon.. requesting a too. on ae is.. of the bonds is signed by voters equal to five percent a the vote .,in the Gp m the last geneedl election and is filed with the City within them days atter the public hearing the bonds may only be issued upon id, m ang the approval of the ac lonty of the mt. voting o. the question of issmng rhe bonds Individuals unable to attend the public heanng cm make winner, comment by wm ng to Linda le.tiok, City Clerk City Hall, 287,5 145th Street West, Rosemount, Minnesota 55068 Wins. comments must be, mcenved prior to the publm heanng Dated this lith day of March, 2005 BY ORDER OP THE ROSE:MOUNT CITY COON- Cn /y Linda I Ienn.k City Clerk City of Rosemount, Dakota County, Minnesota Atnl.y aid, scrim. meawl.6h,-Pfemecon- hair the Cay Clerk m (651)522-2003, or TDD NO (651) 423 6219 m make t Qequea o,u week prior te r� —e-19orcemig 'sampler a . 11.1 mus o ca -me, hid v,. longi ge one p rte, arsine among k,r acce,«hle meema, u,catoq ac 3118/05 RECe : . 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