The Upsala City Council adopted its street reconstruction plan for 2017-2021, for Tower Road in Upsala, Monday.
Minnesota statutes state that “No municipality, except a school district or a city of the first class, shall incur or be subject to a net debt in excess of 3 percent of the estimated market value of property in the municipality.”
At this time, current outstanding debt of Upsala is the 2015 general obligation equipment certificate bonds of $120,000 and the 2017 general obligation capital improvement bonds of $203,000, for a total of $323,000.
The available debt capacity for Upsala is $412,480.30.
Upsala proposes to issue up to $155,000 in new street reconstruction work of Tower Road, located in the northwest quarter of the city.
The project includes removal of existing pavement, subcutting 2.5-feet, placing fabric and tile, backfilling with granular, placing reclaimed bituminous and two lifts of bituminous surfacing.
The project construction will include Tower Road from Fourth Avenue West to Baltic Road — a stretch estimated at less than half a mile.
Morrison County has agreed to provide engineering services in connection with the rehabilitation and reconstruction of Tower Road.
A breakdown of the total project cost of $155,570, includes construction of $123,365, a 10 percent contingency of $12,337, engineering costs of $10,000, ma capitalized interest of $3,648 and a financing and issuance cost of $6,220.