5.2a ERMUSR 04-13-2021 - Laserfiche WebLink

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FUTURE FINANCING In addition to theissue discussed in the “Concurrent Financing” section herein, the City anticipates issuing approximately $1,800,000 of general obligation water utility revenue bonds within the next 90 days. LITIGATION Neither the Citynor the Commissionareaware of any threatened or pending litigation affecting the validity of the Series 2021B Bonds or the City's ability to meet its financial obligations. LEGALITY The Series 2021B Bonds are subject to approval as to certain matters by Kennedy & Graven, Chartered, of Minneapolis, Minnesota, as Bond Counsel. Bond Counsel has not participated in the preparation of this Official Statement and will not pass upon its accuracy, completeness, or sufficiency. Bond Counsel has not examined nor attempted to examine or verify, any of the financial or statistical statements, or data contained in this Official Statement and will express no opinion with respect thereto. A legal opinionin substantially the form set out in Appendix I herein will be delivered at closing. TAX EXEMPTION At closing Kennedy & Graven, Chartered, of Minneapolis, Minnesota, Bond Counsel for the Series 2021B Bonds, will render an opinion that, at the time of their issuance and delivery to the original purchaser, under present federal and State of Minnesota laws, regulations, rulings and decisions (which excludes any pending legislation which may have a retroactive effect), the interest on the Series 2021B Bonds is excluded from gross income for purposes of United States income tax and is excluded, to the same extent, from taxable net income of individuals, estates and trusts for Minnesota income purposes, and is not a preference item for purposes of computing the federal alternative minimum tax or the Minnesota alternative minimum tax imposed on individuals, trusts, and estates. Such interest is subject to Minnesota franchise taxes on corporations (including financial institutions) measured by income. No opinion will be expressed by Kennedy & Graven, Charteredregarding other federal or state tax consequences caused by the receipt or accrual of interest on theSeries 2021B Bonds or arising with respect to ownership of the Series 2021B Bonds. Preservation of the exclusion of interest on the Series 2021B Bonds from federal gross income and state gross and taxable net income, however, depends upon compliance by the City with all requirements of the Internal Revenue Code of 1986, as amended, (the “Code”) that must be satisfied subsequent to the issuance of the Series 2021B Bonds in order that interest thereon be (or continue to be) excluded from federal gross income and state gross and taxable net income. The City will covenant to comply with requirements necessary under the Code to establish and maintain the Series 2021B Bonds as tax-exempt under Section103 thereof, including without limitation, requirements relating to temporary periods for investments and limitations on amounts invested at ayield greater than the yield on the Series 2021B Bonds. - 23 - 288