10-14-2019 Council Packet - Laserfiche WebLink

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AGENDA ITEM Prepared By: RJO Reviewed By: DJR Approved By: DJR 1. Purpose. To reduce the statutory debt levy requirement for the Series 2016A 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. The 2016A General Obligation Bonds we used to refund the Series 2008A Street Reconstruction Bonds. A portion of the original 2008A bond proceeds were used to replace water and sewer mains as part of the Casco Point Road Project. To pay for the Utility upgrades, the water and sewer funds have been transferring an annual amount to the debt service fund. This transfer allows the City to levy an annual amount that is less than the statutory requirement. The preliminary levy approved on September 23, 2018 was based on the reduced amount. 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 2016A GO bonds. COUNCIL ACTION REQUESTED Motion to adopt a Resolution to reduce the levy requirements for the Series 2016A General Obligation Bonds. Exhibits A. Resolution to Reduce the Levy Requirements for the Series 2016A General Obligation Bonds. B. Debt Levy Requirements Item No.: 5 Date: October 14, 2019 Item Description: Reduce Debt Levy Requirement Series 2016A Presenter: Ron Olson, Finance Director Agenda Section: Consent Agenda