Discussion:
On March 15, 2022, the City Council adopted Resolution No. R2020-040, setting the sale of $10,000,000 of General Obligation Bonds. Bids will be opened at 10:00am at the offices of BakerTilly. The par amount of the bonds will be adjusted at the time of the sale to reflect any premium or discount received.
The proceeds from the bond sale will be split into two different purposes:
- $5.91 million will be used for improvements, as identified in the developers agreement, for the Canterbury TIF District and repaid entirely through future tax increment revenues. (TIF Portion),
- $4.09 million will be used to provide funding for the City's Capital Improvement Fund and repaid with a combination of special assessment and property tax levy (Improvement Bonds).
The TIF portion funds the City's share of the construction of County Highway 83 improvements and other improvements listed in "Exhibit C" of the Canterbury Developers Agreement (attached).
The bonds will be a general obligation of the city, secured by its full faith and credit and taxing power. Tax increment revenues from the Canterbury TIF District are expected to cover 100% of debt service of the TIF portion.
The Improvement Bonds portion will cover the cost of street reconstruction projects. This will allow for funds to be available for all other projects in the Capital Improvement Fund. A cash flow projection (attached) provides a listing of projects for 2022/2023 and shows the funding needed to complete those projects prior to the bond sale. Projects programmed include overlays, street reconstruction and the T.H. 169 Pedestrian Bridge. The bond sale was originally anticipated for 2021, but was delayed when the Maras Street, 13th Avenue, Hansen Avenue project was pushed to this year.