7.3. SR 11-02-2020 - Laserfiche WebLink

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$17,500,000.This amount includes the 2020A Bonds and the anticipatedadditional borrowing for Fire Station #3 in 2021. Statutory Requirements:Pursuant to Minnesota Statutes, Section 475.521, the maximum calendar year debt service on all outstanding bonds issues under a capital improvement plan, including the proposed issue, cannot exceed an amount equal to 0.16% of the estimated market value of the property within the City for taxes payable in the year the bonds are issued or sold. The City currently has two outstanding bond issues subject to this statutory limitation: The maximum calendar year debt service on the City’s outstanding CIP debt, and the 2020A Bonds, is estimated to be $1,734,531, which is less than the maximum annual debt service limitation of $4,075,960,as summarized below.The estimated maximum calendar year CIP debt service includes the debt service on the City’s 2010A CIP Bonds and 2012A CIP Bonds prior to their refunding as discussed under the 2020B Bonds. Estimated Market Value For Taxes Payable in Statutory Principal and Statutory Maximum 2020Interest LimitationPrincipal and Interest $2,547,475,2000.16%$4,075,960 The City must also have an adopted 5-year Capital Improvement Plan and comply with the public hearing requirements outlined in Minnesota Statutes, Section 475.521. The public hearing for the 2020A Bonds is scheduled for November2, 2020 and the 30-day petition period ends on December 2, 2020. SECURITY ANDThe 2020ABonds are ageneral obligation of the City, secured by its full faith and credit and taxing power. SOURCE OF PAYMENT: Upon completion of the sale of the 2020A Bonds, debt service tax levies equal to 105% of the principal and interest due on the 2020A Bonds will be certified to the County Auditor.The Citywill make their first levy for the 2020A Bonds in 2020 for collection in 2021. Thosetax collections and/or available City funds will be used to make the interest payments due August1, 2021and February1, 2022. Thereafter, each year’s tax levy collections will be used to make the interest payment due on August1 of the collection year and the February1, principal and interest payment due in the following year. STRUCTURINGIn consultation with Citystaff, the 2020A Bonds have been structured with 20 principal SUMMARY:payments beginning on February1, 2023 to provide for approximately even annual debt service requirements. As noted above, the financing amount of Fire Station #3 is an estimate based on an amount that meets the bank qualification limit and final project funding will be determined on the day of sale. SCHEDULESSchedules attached for the 2020A Bonds can be found in Appendix A and include: ATTACHED: Sources and uses of funds Projected debt service scheduleas a whole and by purpose, based on the current interest rate environment Page 3