12-10-2018 Council Packet - Laserfiche WebLink

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AGENDA ITEM Item No.: 10 Date: December 10, 2018 Item Description: Reduce Debt Levy Requirement Series 2014A Presenter: Ron Olson Agenda Consent Agenda Section: 1. Purpose. To reduce the statutory debt levy requirement for the Series 2014A GO Bonds. 2. Background. Minnesota Statute 475.61 requires the City to collect at least 105% of the annual amount needed for principal and interest payment obligations on the bonds. The 105% requirement can be met through taxes, special assessments, transfers from other funds, or cash on hand. A portion of the 2014A bond proceeds were used for the construction of the Police Garage/Addition. Part of the funding for debt service payments of the bonds is an annual transfer of a portion of the Mound Police Service contract revenue to the debt service fund. To date, a total of $990,000 has been transferred. This transfer allows the City to levy an annual amount that is less than the statutory requirement. The preliminary levy approved on September 24, 2018 was based on the reduced amount. In the past, Hennepin County accepted documentation showing the transfer had been completed as proof that the 105% requirement was met. Now the County requires a copy of a resolution reducing the levy requirement. Approval of the resolution does not decrease the actual levy amount. It is needed to demonstrate that the City is meeting the 105% requirement. 3. Staff Recommendation. Approval of the attached resolution reducing the debt levy requirements for the Series 2014A GO bonds. COUNCIL ACTION REQUESTED Motion to adopt A Resolution to reduce the levy requirements for the Series 2014A General Obligation Bonds. Exhibits A. Resolution to Reduce the Levy Requirements for the Series 2014A General Obligation Bonds. B. Debt Levy Requirements Prepared By: J?Y(g Reviewed By: -Sb)a Approved By: -Sb)