Laserfiche WebLink
$1,420,000 General Obligation Water Utility Revenue Bonds, Series 2016A <br />Description of Issue <br />PURPOSE: Proceeds of the 2016A Bonds will be used as to finance the 2016 Aqua Lane to Black <br />Duck Drive Trunk Water Main project. The proposed project will create a looped water <br />system that will provide residents with high quality water supply and adequate pressure for <br />demand. The proposed project includes trunk water main improvements along Aqua Lane, <br />through the Anoka County Regional park, along Sand Piper Drive and West Shadow Lake <br />Drive, and connecting to the existing water main on the north end of Black Duck Drive. <br />AUTHORITY: Statutory Authority: The 2016A Bonds are being issued pursuant to Minnesota Statutes, <br />Chapters 444 and 475. <br />SECURITY AND <br />SOURCE OF <br />PAYMENT: <br />Statutory Requirements: Pursuant to Minnesota Statutes, Chapter 444 and the resolution <br />awarding the 2016A Bonds, the City will covenant to maintain water rates in an amount <br />sufficient to generate revenues to support the operation of the water utility and to pay debt <br />service. The City is required to annually review the budget of the water fund to determine <br />whether current rates and charges are sufficient and to adjust them as necessary. <br />The City currently has three outstanding bond issues for which the net revenues of the <br />water fund are also pledged. The maximum annual calendar year debt service payment, <br />including the 2016A Bonds, is projected to be $360,770. The table below shows the <br />calculation of net revenues available to pay debt service of the City's water fund for the <br />fiscal year ending December 31, 2015. An aggregate debt service schedule showing the <br />City's outstanding debt payable from the City's water fund and projected debt service on <br />the 2016A Bonds is shown on page 10. <br />Water Fund - Net Revenues as of December 31, 2015 <br />Operating Revenues $ 1,014,836 <br />Operating Expenses (1,394,897) <br />Operating Income (380,061) <br />Add: Depreciation 836,772 <br />Interest Earnings 33,166 <br />Net Revenues Available for Debt Service $ 489,877 <br />Projected Max DS on All Water Debt $ 360,770 <br />Remaining Capacity for Annula DS $ 129,107 <br />The 2016A Bonds are a general obligation of the City, secured by its full faith and credit <br />and taxing power. In addition, the City will pledge net revenues of its water fund. <br />Springsted <br />Page 3 <br />