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CITY COUNCIL AGENDA ITEM 2C STAFF ORIGINATOR: Sarah Cotton MEETING DATE: December 12, 2016 TOPIC: Resolution No. 16-166, Canceling the 2016/2017 Debt Service Tax Levy for Taxable G.O. Improvement Refunding Bonds, Series 2016B VOTE REQUIRED: Simple Majority BACKGROUND In September 2005, the City Council awarded the sale of $5,550,000 Taxable General Obligation Improvement Bonds, Series 2005A to finance public improvements in the Legacy at Woods Edge development. At the time of issuance, an annual tax levy was included in the bond documents for the payment of future debt service. It was fully anticipated that the annual debt service would be satisfied by special assessments and that the tax levy would be evaluated and canceled, if possible, on an annual basis. At the October 24, 2016, City Council meeting, the City Council awarded the sale of $1,980,000 Taxable General Obligation Improvement Refunding Bonds, Series 2016B to refinance the outstanding portion of the 2005A Series Bonds issued to fund the Legacy at Woods Edge Improvements. At the time of issuance of the refunding bonds, an annual tax levy was included in the bond documents for the payment of future debt service. It was fully anticipated that the annual debt service would be satisfied by special assessments, TIF, interfund loans (if needed), and future land sale proceeds and that the tax levy would be evaluated and canceled, if possible, on an annual basis. Following an analysis of the resources available for payment of the ensuing year debt service, staff has concluded that adequate resources are available, and recommends that the debt service tax levy for 2016, collectible in 2017 be canceled by the City Council. By adopting Resolution No. 16-166, the City Council hereby cancels the 2016/2017 debt service levy for this bond issue. RECOMMENDATION Staff recommends adoption of Resolution No. 16-166 ATTACHMENTS Resolution No. 16-166