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Page 1 of 3 <br /> <br />DATE: March 10, 2025 <br /> <br />TO: Honorable Mayor and City Councilmembers <br />Jessica Jagoe, City Administrator <br /> <br />FROM: Joua Yang, Finance Director <br /> <br />SUBJECT: Adopting Resolution 2025-028 Approving the 2025-2029 Capital Improvement <br />Plan (CIP ) and Approving the Issuance of Capital Improvement Plan Bonds <br /> <br />Budgeted Amount: Actual Amount: Funding Source: <br />N/A N/A N/A <br /> <br /> <br />Council Should Consider <br /> <br />Motion to approve, table or deny the following: <br /> Resolution 2025-028 Approving the 2025-2029 Capital Improvement Plan and <br />Approving the Issuance of Capital Improvement Plan Bonds <br /> <br />Background <br /> <br />In 2024, the City Council held an Open House with residents and discussed at length, the cost <br />and financing options for the new Lake Johanna fire station, with the construction of the new <br />station anticipated to begin in the spring of 2025. The City Council adopted an Electric Franchise <br />Fee Ordinance with Xcel Energy (Northern States Power Company) on October 28, 2024 for the <br />collection of franchise fees in order to finance the new fire station. On December 9, 2024, the <br />City Council adopted the 2025-2029 CIP budget which included franchise fee assumptions of <br />$435,000 annually to offset debt service for the new fire station. <br /> <br />At the February 10, 2025 Regular Council Meeting, the City Council adopted Resolution 2025 - <br />018 Providing for the Issuance and Sale of General Obligation CIP Bonds in an amount of <br />$4,680,000 for 15 years to cover the City’s proportionate share of the estimated $24M of <br />construction costs. The annual debt service payments are anticipated to be approximately <br />$420,000 annually with the bond proceeds expected to be available on May 20, 2025. The Lake <br />Johanna Fire Department had their bid opening on January 30, 2025 for the construction and <br />project totals and the City’s proportionate share will likely be reduced through this process based <br />on the final numbers. Staff will work with Ehlers to incorporate the updated bond amount into <br />the Official Statement, the formal disclosure document of terms and features of the bond. <br /> <br /> <br />NEW BUSINESS – 11A <br /> <br /> <br />MEMORANDUM <br />