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CITY COUNCIL <br />AGENDA ITEM 2C <br />STAFF ORIGINATOR: Hannah Lynch, Finance Director <br />MEETING DATE: September 26, 2022 <br />TOPIC: Canceling Debt Service Tax Levy <br />VOTE REQUIRED: 3/5 <br />INTRODUCTION <br />State Law requires that the County Auditor maintain bond registers that have information relating <br />to any bonded debt issued by a local taxing authority within the county. For bonds that have tax <br />levies pledged for payment of all or part of the debt, the county auditor must certify that any <br />required tax levies have been made. State Law requires the county to levy the amount originally <br />certified and scheduled, unless the taxing authority passes a resolution canceling the debt service <br />levy. <br />BACKGROUND <br />G.O. Capital Note, Series 2016A <br />In February 2016, the City Council authorized the issuance of a capital note payable to the City <br />of Circle Pines to finance the City of Lino Lakes share of the cost of capital equipment to be used <br />by the North Metro Telecommunications Commission. At the time of issuance, an annual tax <br />levy was included in the bond documents for the payment of future debt service. It was fully <br />anticipated that the annual debt service would be satisfied by collection of fee revenues from the <br />North Metro Telecommunications Commission, and that the tax levy would be evaluated and <br />canceled, if possible, on an annual basis. <br />Following an analysis of the resources available for payment of the ensuing year debt service, <br />staff has concluded that adequate resources are available, and recommends that the debt service <br />tax levy for 2022, collectible in 2023 be canceled by the City Council. By adopting Resolution <br />No. 22-112, the City Council hereby cancels the 2022/2023 debt service levy for this capital note <br />issue. <br />RECOMMENDATION <br />Staff recommends adoption of Resolution No. 22-112. <br />ATTACHMENTS <br />Resolution No. 22-112 <br />