07-09-1986 Council Agenda - Laserfiche WebLink

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Questions and Answers on the Proposed League infrastructure Pool 1. is a city responding to the survey questionnaire or executing the participation agreement obligated to borrow the funds for which it indicated a need during the next three years? A. No. The survey and participation agreement is intended to assist the League is sizing the bond issue and to determine the kinds of needs which must be addressed in structuring the pool. 2. if the city does borrow during the next three year, must the city borrow from the pool or does the city have the flexibility to conduct its own borrowing program? A. The pool represents a source of funding available to cities, but cities retain all of their normal options available under state law to conduct any of their borrowing plans. 3. Does use of the pool relieve a city of any statutory requirements as a prerequisite for a particular financing such as exceeding its debt limit or avoiding a referendum? A. No. Any city bond purchased by the pool will he done within Minnesota law. Therefore, prior to borrowing money from the pool, cities must satisfy all legal requirements under present state law with respect to the issuance of bonds for contemplated purposed. Cities need not, however, perform any of the legal prerequisites prior to completing the survey. 4. Who must complete the survey? Can this be done by a finance director, city clerk or administrator, or must the information contained in the survey be approved by the city council? A. The survey may he completed by any city officials which the city believes is capable of completing the information. The information involved in the survey need not he approved by the city council. Execution of a participation agreement (to he received later) will require council approval. 5. Can the pool be used for refunding (current or advanced)? A. The pool can he used for current refundings only. Current refundings are those for which the outstanding bonds or indebtedness have early redemption (call) which occur prior to the end of the three —year loan origination which is expected to be October, 1989. 6. Who will administer the pool and how can smaller cities expect to receive assistance concerning whether use of the pool is of benefit to them? A. The League of Minnesota Cities will act as program administrator and will provide advice concerning the appropriate use of the pool for each city indicating interest.