6.1. SR 12-06-2004 - Laserfiche WebLink

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Item # 6.1. MEMORANDUM TO: Mayor and City Council FROM: Lori Johnson, Finance and Administrative Services Director DATE: December 2, 2004 SUBJECT: Request by St. Andrews Catholic School to Issue Tax Exempt Bonds Attached is a letter from Mr. Thomas Kaempffer, Parish Business Administrator of the Church of St. Andrew, requesting that the city consider issuing tax exempt bonds for expansion of the St. Andrew's school. The letter briefly outlines the project and the request for the city to issue up to $1,500,000 of tax exempt bonds. At this point, the only Council action requested is direction on whether or not staff should proceed with this request. If the Council wants to pursue the issuance of tax exempt bonds for this project, staff will work with the city's bond counsel to determine the project's eligibility; if the project is determined to be eligible, this item will be brought back to the Council for formal authorization to issue the bonds. As you know, tax exempt bonds may be issued only for certain uses and may not be used to fund certain religious facilities. Mr. Kaempffer is currently in the process of providing additional information so the bond counsel will be able to determine the eligibility of this project. Mr. Kaempffer also understands and agreed that, according to the city's policy, the Church of St. Andrew will be responsible for all of the city's bond counsel and other issuance costs on this project. Finally, since the city does not anticipate issuing in excess of $10 million of debt in 2005, this does not jeopardize the city's bank qualified starus. Further, this debt does not become an obligation of the city. Action Requested The City Council is asked to provide direction on the Church of St. Andrew's request for the city's issuance of up to $1, 500,000 of tax exempt bonds for expansion of its school. s: \Council\Lori\2004 \standrewbonds.doc