City Council Meeting Date: January 6, 2026
To: Mayor and City Council
City Administrator
From: David E. Bennett, Public Works Director/City Engineer
Sean M. Simonson, Engineering Manager
Title
Public Hearing on Adopting the Street Reconstruction and Overlay Plan (SROP) and Issuance of Street Reconstruction and Overlay Bonds.
Body
Action Requested:
The Northfield City Council hold a public hearing on Adopting the Street Reconstruction and Overlay Plan and Issuance of Street Reconstruction and Overlay Bonds.
*Note: See the Public Hearing Procedures for action including the Mayor calling the hearing to order and at the conclusion the Council will need to make a motion to close the public hearing.
Summary Report:
The City will hold a public hearing on the adoption of a street reconstruction plan and the establishment of a general obligation bond principal amount not to exceed. The City has completed extensive review of the proposed projects and has received the necessary authorizations to proceed. This action represents the funding mechanism to integrate with the pending 2026 street reconstruction and overlay projects. It occurs late in the project development sequence and is a routine step to finalize financing for projects planned for implementation in 2026. The City is well past stages in the project development process that would place the approval of financing into question.
Tonight is a public hearing on the plan. Upon closing of the hearing, Council will consider any information received and then consider a resolution to adopt the plan and authorize the bonding amount for 2026. The maximum bond amount is $4,750,000.00. This includes the 2026 Mill and Overlay Project, as well as improvements on Fremouw Avenue and Spring Street related to supplemental safety enhancements at railroad crossings.
The City’s 5-Year Street Reconstruction Plan is attached. Ehlers Financial Advisors has prepared the plan for the City, and it identifies streets proposed for improvements from 2026-2030. Although the financing plan includes future years beyond 2026, the authorization of bonds following this public hearing applies only to the 2026 projects and does not authorize funding for projects listed for 2027-2030.
Public Hearing Procedure
A Public Hearing is used by the City Council to solicit the public's comments on various projects or City operation procedures.
A. The Mayor will open the hearing by identifying the subject.
B. Staff Presentation- staff will give a presentation on the subject.
C. Applicant's Presentation- (not applicable to this agenda item)
D. Public Input- The public will have the opportunity to speak for or against the issue. The public may ask questions, make comments, voice support, agree or disagree with the issue.
1. The Mayor will recognize a speaker at the podium and comments/conversation will be between the Mayor and speaker; and between the Mayor and Council Members.
2. At the podium the speaker must give their name, address, and if representing a business, must give the name of the business or corporation. If an Attorney or consultant is representing a client, the client must be identified for the record.
3. Speakers will be allowed to speak a maximum of two (2) minutes per item (not including interpreter’s time, if applicable).
4. Speakers who have material to be handed out to the City Council will pass the material to the City Administrator. The City Administrator will then pass the information to the appropriate people. A minimum of twelve (12) copies are needed.
5. Persons cannot gift their 2 minute speaking time to other members of the public.
E. Questions or Clarifications from City Council - After the public input of the public hearing is completed, the City Council may request questions or clarifications prior to closing the public hearing. This section will be used when there are questions related to the topic on which the public hearing is being held. Questions should be succinct and avoid being rhetorical or leading in nature. Subsequent actions of the City Council provide for opportunities for further questions or clarifications from the City Council.
F. Any material to be entered into the record shall be noted. Any written communication presented to the City Council during a City Council meeting shall be read into the record or summarized for the record or simply delivered to the City Council, as the City Council may determine. They shall then be recorded in the minutes by title and filed with the minutes in the office of the City Clerk.
G. Motion to Close Hearing- The Mayor will state if there is an extension of time for public input into the hearing. If not, the City Council Members will make a motion, second, and vote of the City Council on closing the public hearing.
Additional Background
Many years ago, the City transitioned away from a financing model that relied primarily on special assessments to fund street reconstruction projects and instead adopted the Street Reconstruction and Overlay Program (SROP) bonding approach. Under this model, the City uses general obligation bonding to finance major street reconstruction and overlay projects, supported primarily by citywide revenues, rather than directly assessing individual property owners for the majority of project costs. This approach reflects a policy decision that local streets function as a shared public asset and that their long-term condition and safety benefit the community as a whole.
State law requires that, prior to issuing these bonds, the City adopt a street reconstruction plan and hold a public hearing. This hearing is specific to the proposed 2026 projects and the associated bonding authorization-not the City’s overall Capital Improvement Program. The purpose of the hearing is to allow public input on the identified 2026 street improvements and to establish the maximum bonding amount needed to move these projects forward.
Use of the SROP bonding tool provides several benefits to the City and its residents. It allows the City to deliver systematic, proactive reinvestment in its street network, avoiding deferred maintenance and higher long-term repair costs. It improves predictability and equity by spreading costs broadly across the community rather than placing a large financial burden on adjacent property owners. The program also enhances public safety, supports economic activity, protects prior infrastructure investments, and provides a stable framework for planning and delivering street improvements over multiple years.
City Plans & Policies Relevance:
The public hearing related to financing doesn’t directly have any noteworthy focus on City plans. However, this has been an intentional change a number of years ago to use this financing versus special assessments as outlined in the summary memo section.
Alternative Options:
This is the recommended option to continue to move the 2026 projects forward. This is the final
Financial Impacts:
Once bids are received for the project, bonds will be issued based on adjusted amounts after the bid.
Tentative Timelines:
Sale of bonds will occur in the summer of 2026.