12-10-2018 Council Meeting Packet

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CITY COUNCIL AGENDA ITEM 2E STAFF ORIGINATOR: Sarah Cotton MEETING DATE: December 3, 2018 TOPIC: Consider Resolution No. 18-180, Reducing the 2018/2019 Debt Service Tax Levy for G.O. Bonds, Series 2018A VOTE REQUIRED: 3/5 INTRODUCTION State Law requires that the County Auditor maintain bond registers that have information relating to any bonded debt issued by a local taxing authority within the county. For bonds that have tax levies pledged for payment of all or part of the debt, the county auditor must certify that any required tax levies have been made. State Law requires the county to levy the amount originally certified and scheduled, unless the taxing authority passes a resolution canceling or reducing the debt service levy. BACKGROUND G.O. Bonds, Series 2018A On November 13, 2018, the City Council awarded the sale of $6,915,000 General Obligation Bonds, Series 2018A to finance various street reconstruction projects (LaMotte and West Shadow Lake Drive Areas) and various water and sewer utility projects. At the time of issuance, an annual tax levy was included in the bond documents for the payment of future debt service. It was anticipated that the annual debt service would be satisfied through collections of special assessments and an annual tax levy. The adopting resolution includes an original certified and scheduled debt service levy of $233,158.95 for Pay 2019. Staff has reviewed the resources available for payment of the first years’ debt service and concluded that adequate resources (excess premium, favorable costs of issuance, prepaid assessments, etc) are available to reduce the levy to $200,000, the amount that was levied for debt service when the preliminary budget and levy was adopted in September. By adopting Resolution No. 18-180 the City Council hereby reduces the 2018/2019 debt service levy for this bond issue. RECOMMENDATION Staff recommends adoption of Resolution No. 18-180. ATTACHMENTS Resolution No. 18-180