8.1. SR 01-21-2014 - Laserfiche WebLink

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POST ISSUANCE The issuance of these bonds will result in post-issuance compliance responsibilities. The COMPLIANCE: responsibilities are in two primary areas: i)compliance with federal arbitrage requirements and ii)compliance with secondary disclosure requirements. Federal arbitrage requirements include a wide range of implications that have been taken into account as your issue has been structured. Post-issuance compliance responsibilities for your tax-exempt issue include both rebate and yield restriction provisions of the IRS Code. In general terms the arbitrage requirements control the earnings on unexpended bond proceeds, including investment earnings, moneys held for debt service payments (which are considered to be proceeds under the IRS regulations), and/or reserves. Because the transaction is being conducted as a current refunding in which proceeds will be spent within 90 days, the City expects to meet the 6-month spending exception and gross proceeds that meet the test will qualify for an exception to rebate. Yield restriction provisions will apply to the debt service fund and the debt service reserve account and the funds should be monitored throughout the life of the Bonds. Secondary disclosure requirements result from an SEC requirement that underwriters provide ongoing disclosure information to investors. To meet this requirement, any prospective underwriter will require the City to commit to providing the information needed to comply under a continuing disclosure agreement. Springsted will provide arbitrage and continuing disclosure compliance services to the City under separate contracts. Contracts for these services will be provided to City staff. SUPPLEMENTAL Supplementary information will be available to staff including detailed terms and conditions of INFORMATION sale, comprehensive structuring schedules and information to assist in meeting post- AND issuance compliance responsibilities. BOND RECORD: Upon completion of the financing, a bond record will be provided that contains pertinent documents and final debt service calculations for the transaction. PURPOSE: Proceeds of the Bonds, together with $359,500 available in the Debt Service Reserve Account, will be used to (i) refund the August 1, 2014 through August 1, 2021 maturities of the City's Electric Revenue Bonds, Series 2006A (the "Prior Bonds"), dated March 2, 2006; (ii)fund a debt service reserve fund; and (iii) pay cost of issuance. The issuance of the Bonds is being conducted as a "current" refunding, in which the proceeds of the Bonds are used within ninety days of bond settlement to redeem the outstanding principal of the Prior Bonds. The maturities to be refunded are currently outstanding in the aggregate principal amount of$2,180,000. The purpose of the refunding is to restructure the Utility's debt and achieve interest cost savings. The Prior Bonds were originally issued to finance improvements and extensions to the City's Electric Utility system. AUTHORITY: Statutory Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapters 453 and 475. Parity Debt: In addition to the Bonds, the Utility has one other outstanding issue payable from net revenues of the Electric Utility system—the Electric Revenue Bonds, Series 2007A (the "Series 2007A Bonds"), today outstanding in the aggregate principal amount of$2,160,000 with a final maturity of February 1, 2022. SpringstQd Page