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AGENDA ITEM <br />Prepared By: RJO Reviewed By: A.Carlson Approved By: <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />1. Purpose. The purpose of this item is to reduce the statutory debt levy requirement for the Series <br />2014A GO Bonds. <br /> <br />2. Background. Minnesota Statute 475.61 requires the City to collect at least 105% of the annual <br />amount needed for principal and interest payment obligations on the bonds. The 105% requirement can be <br />met through taxes, special assessments, transfers from other funds, or cash on hand. <br /> <br />A portion of the 2014A bond proceeds were used for the construction of the Police Garage/Addition. Part <br />of the funding for debt service payments of the bonds is an annual transfer of a portion of the Mound <br />Police Service contract revenue to the debt service fund. To date, a total of $1,366,000 has been <br />transferred. This transfer allows the City to levy an annual amount that is less than the statutory <br />requirement. <br /> <br />The tax levy scheduled for collection in 2023 is $299,250. The amount needed to service the while still <br />meeting the 105% requirement is $242,000. Hennepin County requires a copy of a resolution reducing <br />the levy requirement. <br /> <br />3. Staff Recommendation. Approval of the attached resolution reducing the debt levy requirements for <br />the Series 2014A GO bonds. <br /> <br />COUNCIL ACTION REQUESTED <br />Motion to adopt Resolution No. 7290 <br /> <br />Exhibits <br />A. Resolution to Reduce the Levy Requirements for the Series 2014A General Obligation Bonds. <br />B. Debt Levy Requirements <br /> <br /> <br /> <br /> <br />Item No.: 5 Date: September 26, 2022 <br />Item Description: Reduce Debt Levy Requirement Series 2014A – Resolution No. <br />7290 <br />Presenter: Ron Olson, Finance Director Agenda <br />Section: <br />Consent Agenda