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<br />City of Elk River, Minnesota <br />November 3, 1994 <br /> <br />e Option 1/ <br /> <br />Project Costs" <br />Less: Other Financing Sources <br />TIF No.4 <br /> <br />$978,480 <br />1429.329) <br />$549,151 <br />13,439 <br />7410 <br />$570,000 <br /> <br />Amount to be Financed <br />Plus: Costs of Issuance <br />Allowance for Bidding Discount (1.3%) <br /> <br />Total Series 19940 Bonds <br /> <br />.. Includes land purchases and engineering. <br /> <br />e <br /> <br />Attached as Appendices I and II are the alternative maturity schedules for this issue. The issue <br />has been structured to provide for even annual payments over a 15-year period, with principal <br />due February 1, 1996 through 2010. The Terms of Proposal has been written assuming the full <br />issuance of $1,010,000. If the Council chooses to reduce the issue by TIF No. 4 revenue <br />contributions, the Terms will be rewritten to reflect the smaller size and the maturity schedule in <br />Appendix II. <br /> <br />Pursuant to Minnesota Statutes, Chapter 444, upon the successful sale of the bonds, the City <br />will covenant to charge rates sufficient to generate net revenues of its water utility to meet the <br />debt service requirements on the bonds. The City will also pledge its full faith and credit and <br />unlimited taxing authority as a backup security for this issue. However, any tax levies made to <br />prOVide debt service payments should be temporary in nature and an adjustment of rates and <br />charges would be required. Net revenues generated each year by the water utility will be used <br />to make the August 1 interest payment and the subsequent February 1 principal and interest <br />payment. . <br /> <br />The City currently has no other debt outstanding which is payable from net revenues of the <br />water utility. <br /> <br />$1,550,000 General Obligation Improvement Bonds, Series 1994E <br /> <br />These bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475. <br />Proceeds will be used to finance water trunk and laterals, sanitary sewer trunk and lateral, <br />storm sewer and street improvements for the City's Western Area Phase II. This issue will be <br />paid primarily from special assessments against benefited property with any shortfall to be <br />funded with the City's controlled MSA project funds. The composition of the issue is as follows: <br /> <br />e <br /> <br />Project Costs. <br />Less: Other Financing Sources <br />1994 Surplus Bond Proceeds <br /> <br />Total to be Financed <br />Plus: Costs of Issuance <br />Allowance for Bidding Discount (1.3%) <br /> <br />Total Series 1994E Bonds <br /> <br />$2,004,660 <br />(500.000) <br />$1,504,660 <br />25,190 <br />20.150 <br />$1,550,000 <br /> <br />.. Includes engineering, administration, legal and other. <br /> <br />Paae 2 <br />