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Granting preliminary approval to the issuance of various general obligation and revenue bonds as approved in the 2024 City budget; expressing the intent of the City to reimburse itself from the proceeds of such tax-exempt bonds; and authorizing City finance staff and advisors to take certain actions with respect to the sale of such bonds.
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WHEREAS, on December 6, 2023 the City Council (the “City Council”) of the City of Saint Paul, Minnesota (the “City”) approved the 2024 City Budget including the proposed issuance of multiple series of general obligation and revenue indebtedness (collectively, the “Bonds”) in calendar year 2024 as described below and on Exhibit A attached hereto and made a part hereof; and
WHEREAS, the general obligation capital improvement bonds identified on Exhibit A attached hereto will be general obligations of the City payable from general ad valorem taxes and will (i) fund various capital improvement projects identified in the City’s approved Capital Improvement Budget, including Green Energy projects, and (ii) pay costs of issuance; and
WHEREAS, the general obligation street reconstruction bonds identified on Exhibit A attached hereto will be general obligations of the City payable from general ad valorem taxes, a portion of which may but is not required to be payable from special assessments against benefited properties, and will (i) fund certain Saint Paul Street Vitality program improvement and rehabilitation projects as set forth in the 2024 City Budget and previously budgeted for in 2023 that were not completed, and (ii) pay costs of issuance; and
WHEREAS, the general obligation capital note equipment financing identified on Exhibit A attached hereto will be a general obligation of the City payable from general ad valorem taxes and will (i) fund public safety equipment and other capital equipment for use by City departments identified in the 2024 City Budget, including software, and (ii) pay costs of issuance; and
WHEREAS, the sewer revenue bonds identified on Exhibit A attached hereto will be special, limited obligations of the City payable solely from the City’s sewer enterprise fund and the sewer bonds will (i) fund certain sewer improvement and rehabilitation projects as set forth in the 2024 City Budget, and (ii) pay costs of issuance; and
WHEREAS, the water revenue note identified on Exhibit A attached hereto will be a special, limited obligation of the City payable solely from revenues of the Saint Paul Regional Water Services (“SPRWS”) and the water revenue notes will (i) fund certain water improvement and rehabilitation projects as set forth in the SPWRS Water Capital Improvement Plan including, but not limited to the McCarron’s Water Treatment Plant Modernization Project and lead service pipe replacement in the approximate principal amount of $29,000,000 and $15,000,000 respectively, and (ii) pay costs of issuance; and
WHEREAS, certain new money sales tax revenue and refunding bonds identified on Exhibit A attached hereto will be special, limited obligations of the City payable solely from revenues of the City’s ½ cent local option sales tax and the sales tax revenue bonds will (i) fund the construction of the North End Community Center, the construction of Fire Station 7, improvements to Pedro Park and other community capital improvement projects as set forth in the City’s Capital Improvement Plan, (ii) pay costs of issuance; (iii) fund any necessary reserves; and (iv) refund prior issues; and
WHEREAS, additional sales and other costs related to such sales tax bonds and use tax revenue identified on Exhibit A attached hereto will be special, limited obligations of the City payable solely from revenues of the new local option sales tax approved by the Saint Paul voters in November 2023 that is anticipated to commence April 1, 2024 and the sales tax revenue bonds will (i) fund Public Works and Parks and Recreation projects; (ii) pay costs of issuance; and (iii) fund any necessary reserves; and
WHEREAS, the City, along with Baker Tilly Municipal Advisors, LLC, Ehlers & Associates, Inc., and PFM Financial Advisors LLC, as the City’s municipal advisors, are monitoring certain prior bond issues or other debt obligations of the City and the Saint Paul Public Library Agency (including general obligation, lease revenue bonds or prior lease-purchase agreements) for refunding in advance of their maturities as identified on Exhibit A hereto and the City may issue refunding bonds or other debt obligations as preliminarily approved by this resolution; and
WHEREAS, the City’s Office of Financial Services and the City’s municipal advisors also routinely monitor the City’s other outstanding debt obligations not identified on Exhibit A for possible refunding opportunities and may bring forward any refundings identified by the Office of Financial Services at a later date; and
WHEREAS, City finance staff currently anticipates selling the revenue and general obligations described above and in Exhibit A either by negotiated or competitive sale in calendar year 2024 in consultation with the City’s municipal advisors.
BE IT RESOLVED by the Council of the City of Saint Paul, Minnesota, as follows:
1) The Director, Office of Financial Services, the City Treasurer, and other appropriate City officials and staff are hereby authorized and directed to proceed with preliminary actions for the issuance and sale of the obligations identified on Exhibit A attached hereto and made a part hereof, in the approximate principal amounts set forth therein. Each series of the obligations shall be issued and sold in conformance with the provisions of the City Charter and Minnesota law. The Director, Office of Financial Services and the City Treasurer are hereby authorized, when advantageous and in consultation with the City’s municipal advisors, to take the necessary steps to optionally redeem any bonds for which there are debt service savings.
2) Baker Tilly Municipal Advisors, LLC, Ehlers & Associates, Inc., and PFM Financial Advisors LLC are hereby named municipal advisors to the City with respect to the issuance and sale of the obligations.
3) Baker Tilly Municipal Advisors, LLC, Ehlers & Associates, Inc., PFM Financial Advisors LLC, and bond counsel to the City are hereby authorized to work with City staff to prepare the City’s offering documents and materials for the issuance and sale of the obligations and such other documents, instruments and certificates as may be necessary for further approval of this City Council for the completion of the sale of the obligations.
4) The City intends to make expenditures for the capital projects financed by the obligations referenced in this resolution and reimburse such expenditures from the proceeds of such obligations. This resolution is intended to constitute a declaration of the City’s official intent, for purposes of Section 1.150-2 of the Treasury Regulations, with respect to certain original expenditures made from any sources other than the proceeds of tax-exempt obligations, in conjunction with the capital projects and equipment financed thereby for the new money obligations identified on Exhibit A. The maximum amount of such obligations, as indicated on Exhibit A hereto, solely for purposes of this paragraph, the maximum amount is $177,862,000.