05-26-2021 Council Packet - Laserfiche WebLink

Home Browse Search

CITY OF LITTLE CANADA, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2020 NOTE 17 COMMITMENTS During 2002, the City issued the Tax Increment Revenue Note of 2002 in the principal sum of $1,050,000. This note is not reflected in the financial statements of the City because the note is not a General Obligation of the City and is payable solely from available tax increments. The note reads in part as follows: The payment amounts due hereon shall be payable solely from tax increments (the Tax Increments) from the City’s Tax Increment Financing District No. 3-3 (the Tax Increment District) within its Municipal Development District No. 3 which are paid to the City and which the City is entitled to retain pursuant to the provisions of Minnesota Statutes, Sections 469.174 through 469.179, as the same may be amended or supplemented from time-to-time (the Tax Increment Act). This note is not a general obligation of the City, and neither the full faith and credit nor the taxing powers of the City are pledged to the payment of the principal of or interest of this note and property or other asset of the City, save and except the above-referenced Tax Increments, is or shall be a source of payment of the City’s obligations hereunder. During 2012, the City issued the Tax Increment Revenue Note of 2012 in the principal sum of $530,237. This note is not reflected in the financial statements of the City because the note is not a General Obligation of the City and is payable solely from available tax increments. The note reads in part as follows: The payment amounts due hereon shall be payable solely from tax increments (the Tax Increments) from the City’s Tax Increment Financing District No. 5-1 (the Tax Increment District) within its Municipal Development District No. 5 which are paid to the City and which the City is entitled to retain pursuant to the provisions of Minnesota Statutes, Sections 469.174 through 469.179, as the same may be amended or supplemented from time-to-time (the Tax Increment Act), which are remitted or remaining after (a) the principal of an interest on the bonds have been paid in full, (b) the City has fully reimbursed itself from tax increments for any City Phase III shortfall amount, and (c) payment of the guaranty note in full (the Available Tax Increments). This note is not a general obligation of the City, and neither the full faith and credit nor the taxing powers of the City are pledged to the payment of the principal of or interest of this note and no property or other asset of the City, save and except the above-referenced Tax Increments, is or shall be a source of payment of the City’s obligations hereunder. 78