10-24-2016 Council Packet - Laserfiche WebLink

Home Search

- 6 - Sources and Uses of Funds The composition of the Series 2016B Bonds is estimated to be as follows: Sources of Funds: Principal Amount $1,980,000 Total Sources of Funds $1,980,000 Uses of Funds: Deposit to Current Refunding Fund $1,935,000 Costs of Issuance 31,140 Allowance for Discount Bidding 13,860 Total Uses of Funds $1,980,000 Security and Financing The Series 2016B Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. The City will pledge special assessments levied against benefited properties originally pledged to the Series 2005A Bonds for repayment of the Series 2016B Bonds, which will be sufficient to pay 105% of the debt service due on the Series 2016B Bonds in each year. The City does not anticipate the need to levy taxes for repayment of the Series 2016B Bonds. THE SERIES 2016C BONDS Authority and Purpose The Series 2016C Bonds are being issued pursuant to Minnesota Statutes, Chapters 469 and 475. The Series 2016C Bonds have been structured as a current refunding, and are being issued to achieve debt service savings. On July 24, 2006, the City issued its General Obligation Tax Abatement Bonds, Series 2006C in the original principal amount of $2,460,000 (the “Series 2006C Bonds”). The proceeds of the Series 2006C Bonds were loaned to the YMCA of Greater Saint Paul (now known as Young Men’s Christian Association of the Greater Twin Cities) (the “YMCA”) to help finance the construction of an approximately 42,000 square-foot recreational facility located at 7690 Village Drive in the City and finance the acquisition and installation of equipment (the “YMCA Project”), which is owned and operated by the YMCA. The YMCA Project was also financed with the proceeds of the issuance of the Revenue Note (YMCA Project), Series 2006A, issued by the City in the amount of $3,500,000, and Revenue Note (YMCA Project), Series 2006B, issued by the City in the amount of $500,000. The two revenue notes are conduit debt issued by the City for the benefit of the YMCA and the YMCA is responsible for paying all debt service on the revenue notes. The proceeds of the Series 2016C Bonds will be used to redeem the February 1, 2018 through February 1, 2023 maturities (the “Series 2006C Refunded Maturities”) of the Series 2006C Bonds. It is anticipated that the Series 2006C Refunded Maturities will be called and prepaid at a price of par plus accrued interest on February 1, 2017, which is within 90 days of settlement of the Series 2016C Bonds.