10-11-2017 Council Packet - Laserfiche WebLink

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Presale Report City of Little Canada, Minnesota October 11, 2017 Page 3 Risk Factors: HIA Fees: The fee amount may result in delinquency of fees, or ultimately a potential property tax foreclosure. The risk of tax foreclosure is expected to be small and the reason for a large cumulative balance is to protect the City. There is also a recognized risk that if the City does not act to assist the units, the value of the units and the condition of the neighborhood could deteriorate significantly. GO Pledge: Because the Bonds will be general obligations of the City for which its full faith, credit and taxing powers are pledged, if the annual fees collected are not sufficient to pay the debt service payments, other City funds will need to be used. Current Refunding: The Bonds are being issued for the purpose of current refunding prior City debt obligations. Those prior debt obligations are “callable” now and can therefore be paid off within 90 days or less. The new Bonds will not be pre-payable. This refunding is being undertaken based in part on an assumption that the City does not expect to have future revenues to pay off this debt and that market conditions warrant the refinancing at this time. Other Service Providers: This debt issuance will require the engagement of other public finance service providers. This section identifies those other service providers, so Ehlers can coordinate their engagement on your behalf. Where you have previously used a particular firm to provide a service, we have assumed that you will continue that relationship. For services you have not previously required, we have identified a service provider. Fees charged by these service providers will be paid from proceeds of the obligation, unless you notify us that you wish to pay them from other sources. Our pre-sale bond sizing includes a good faith estimate of these fees, so their final fees may vary. If you have any questions pertaining to the identified service providers or their role or if you would like to use a different service provider for any of the listed services please contact us. Bond Attorney: Briggs and Morgan Paying Agent: Bond Trust Services Rating Agency: Standard & Poor’s Summary: The decisions to be made by the Council are as follows:  Accept or modify the finance assumptions described in this report.  Adopt the resolution attached to this report. This presale report summarizes our understanding of the City’s objectives for the structure and terms of this financing as of this date. As additional facts become known or capital markets conditions change, we may need to modify the structure and/or terms of this financing to achieve results consistent with the City’s objectives.