City Council Meeting Date: February 16, 2021
To: Mayor and City Council
City Administrator
From: David E. Bennett, Public Works Director/City Engineer
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.
Summary Report:
In December 2020, Council adopted Gas/Electric Franchise Fees as an offset in revenue that would typically be received through assessments to fund street improvement projects. With that action, the City is moving away from Minnesota Statute Chapter 429 Street Improvement projects with assessments.
Another financing tool available to local governments is through Minnesota Statute 475.58 Street Reconstruction and Overlays. Under this process, the City will hold a public hearing on the adoption of a street reconstruction plan and set the general obligation bond principal amount not to exceed.
The City’s 5-Year Street Reconstruction Plan is attached. Ehlers Financial Advisors has prepared the plan for the City. The plan identifies the streets proposed for improvements from 2021-2025.
Tonight, is a public hearing on the plan. Upon, closing of the hearing, Council will weigh any information from the hearing before considering a resolution to adopt the plan and authorize the bonding amount for 2021. The maximum amount for the bond is $4,150,000.00. This includes the 2021 Reclamation and Overlay Project and Fifth Street Bridge Improvements.
Alternative Options:
This is the recommended option to continue to move the 2021 projects forward.
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 2021.