8.1. SR 03-15-2021 - Laserfiche WebLink

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Page 3 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 Bonds was held on November 2, 2020 and the 30-day petition period ended on December 2, 2020. SECURITY AND SOURCE OF PAYMENT: The Capital Improvement Plan Portion is a general obligation of the City, secured by its full faith and credit and taxing power. An amount sufficient to make the February 1, 2022 interest payment for the Capital Improvement Portion is included in the Bonds as capitalized interest. The City will make their first levy for the Capital Improvement Plan Portion in 2021 for collection in 2022. Each year’s tax collections will be used to make the interest payment due on August 1 of the collection year and the February 1 principal and interest payment due in the following year. STRUCTURING SUMMARY: In consultation with City staff, the Capital Improvement Plan Portion has been structured with 20 principal payments beginning on February 1, 2023 to provide for approximately even annual debt service requirements. $1,240,000 Equipment Portion Description of Purpose PURPOSE: Proceeds of the Equipment Portion will be used to finance the purchase of fire trucks and other capital equipment. AUTHORITY: Statutory Authority: The Equipment Portion is being issued pursuant to Minnesota Statutes, Chapter 475 and Section 412.301. Statutory Requirements: Pursuant to Minnesota Statutes, Section 412.301, the City may finance capital equipment with the issuance of certificates of indebtedness without being subject to a petition requirement calling for a referendum if the total amount of the issue does not exceed ¼ of 1% of the estimated market value of the City. Based on the City’s 2019/2020 estimated market value of $2,547,475,200 this represents a maximum issue size of $6,368,688. This issuance of $1,240,000 for the Equipment Portion is within that limitation and is not subject to a taxpayer petition for a referendum. SECURITY AND SOURCE OF PAYMENT: The Equipment Portion will be a general obligation of the City, secured by its full faith and credit and taxing power and will be repaid with ad valorem taxes. An amount sufficient to make the February 1, 2022 interest payment for the Equipment Portion is included in the Bonds as capitalized interest. The City will make their first levy for the Equipment Portion in 2021 for collection in 2022. Each year’s collection of taxes will be used to make the August 1 interest payment due in the collection year and the February 1 principal and interest payment due the following year. STRUCTURING SUMMARY: In consultation with City staff, the Equipment Portion has been structured to provide approximately level annual debt service requirements over a term of 9 years.