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AGENDA ITEM <br />Prepared By: RJO Reviewed By: DJR Approved By: DJR <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />1. Purpose. To reduce the statutory debt levy requirement for the Series 2014A GO Bonds. <br /> <br />2. Background. Minnesota Statute 475.61 requires the City to collect at least 105% of the <br />annual amount needed for principal and interest payment obligations on the bonds. The 105% <br />requirement can be met through taxes, special assessments, transfers from other funds, or cash on <br />hand. <br /> <br />A portion of the 2014A bond proceeds were used for the construction of the Police <br />Garage/Addition. Part of the funding for debt service payments of the bonds is an annual <br />transfer of a portion of the Mound Police Service contract revenue to the debt service fund. To <br />date, a total of $1,090,000 has been transferred. This transfer allows the City to levy an annual <br />amount that is less than the statutory requirement. <br /> <br />The preliminary levy approved on September 23, 2019 was based on the reduced amount. The <br />County requires a copy of a resolution reducing the levy requirement. Approval of the resolution <br />does not decrease the actual levy amount. It is needed to demonstrate that the City is meeting the <br />105% requirement. <br /> <br />3. Staff Recommendation. Approval of the attached resolution reducing the debt levy <br />requirements for the Series 2014A GO bonds. <br /> <br />COUNCIL ACTION REQUESTED <br />Motion to adopt a resolution to reduce the levy requirements for the Series 2014A General <br />Obligation Bonds. <br /> <br />Exhibits <br />A. Resolution to Reduce the Levy Requirements for the Series 2014A General Obligation <br />Bonds. <br />B. Debt Levy Requirements <br /> <br /> <br /> <br /> <br />Item No.: 4 Date: October 14, 2019 <br />Item Description: Reduce Debt Levy Requirement Series 2014A <br />Presenter: Ron Olson, Finance Director Agenda <br />Section: <br />Consent Agenda