5.1 ERMUSR 05-11-2021 - Laserfiche WebLink

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- 5 - SOURCES AND USES OF FUNDS The composition of the Series 2021C Bonds is estimated to be as follows: Sources of Funds: Principal Amount $1,750,000 Total Sources of Funds $1,750,000 Uses of Funds: Deposit to Project Fund $1,687,500 Costs of Issuance 41,500 Allowance for Discount Bidding 21,000 Total Uses of Funds $1,750,000 SECURITY AND FINANCING The Series 2021C Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes; however, the City does not anticipate the need to levy taxes for repayment of the Series 2021C Bonds. Pursuant to Minnesota Statutes, Chapter 444, and the resolution awarding the sale of the Series 2021C Bonds, the Commission, on behalf of the City, will covenant to impose and collect charges for the service, use, availability and connection to the Water Utility to produce net revenues in amounts sufficient to support the operation of the Water Utility to pay 105% of the debt service due on obligations to which it has pledged its Water Utility Fund revenues, including the Series 2021C Bonds. The City is required to annually review the budget of the Water Utility to determine whether current rates and charges are sufficient and to adjust such rates and charges as necessary. FUTURE FINANCING The City does not anticipate issuing any additional long-term general obligation debt within the next 90 days. LITIGATION The City is not aware of any threatened or pending litigation affecting the validity of the Series 2021C Bonds or the City's ability to meet its financial obligations. LEGALITY The Series 2021C 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 114