8.1. SR 03-15-2021 - Laserfiche WebLink

Home Browse Search

Page 2 SCHEDULES ATTACHED: Schedules attached for the Bonds include (i) sources and uses of funds, (ii) projected debt service schedules, as a whole and by purpose, given the current interest rate environment, and (iii) calendar year debt service payments on the City’s outstanding CIP Bonds including the 2021A Bonds. RISKS/SPECIAL CONSIDERATIONS: The outcome of this financing will rely on the market conditions at the time of the sale. Any projections included herein are estimates based on current market conditions. SALE TERMS AND MARKETING: Variability of Issue Size: A specific provision in the sale terms permits modifications to the issue size and/or maturity structure to customize the issue once the price and interest rates are set on the day of sale. Prepayment Provisions: Bonds maturing on or after February 1, 2032 may be prepaid at a price of par plus accrued interest on or after February 1, 2031. Bank Qualification: The City does not expect to issue more than $10 million in tax-exempt obligations that count against the $10 million limit for this calendar year; therefore, the Bonds are designated as bank qualified. $3,985,000 Capital Improvement Plan Portion Description of Purpose PURPOSE: Proceeds of the Capital Improvement Plan Portion will be used to finance various capital improvements identified in the City’s 2020-2025 Capital Improvement Plan (CIP), that was adopted on November 2, 2020. Specifically, the City expects to use proceeds of the Bonds to finance the remaining portion of the City’s Fire Station #3. AUTHORITY: Statutory Authority: The Capital Improvement Plan Portion is being issued pursuant to Minnesota Statutes, Section 475.521, and the City’s 2020-2025 Capital Improvement Plan that was adopted on November 2, 2020. The resolution specifies that the issuance of CIP bonds for Public Safety cannot exceed $17,500,000. The 2020A CIP Bonds authorized under this plan were issued for $9,435,000, leaving $8,065,000 of remaining authority. This $3,985,000 2021A Bond is well below the remaining capacity. 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 Bonds, is estimated to be $1,871,814, which is less that the maximum annual debt service limitation of $4,075,960, as summarized below: Estimated Market Value For Taxes Payable in 2020 Statutory Principal and Interest Limitation Statutory Maximum Principal and Interest $2,547,475,200 0.16% $4,075,960