09-25-2023 Council Meeting Packet

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1 CITY COUNCIL REGULAR MEETING STAFF REPORT AGENDA ITEM 2C STAFF ORIGINATOR: Hannah Lynch, Finance Director MEETING DATE: September 25, 2023 TOPIC: Cancelling the 2023/2024 Debt Service Tax Levy for G.O. Capital Note, Series 2016A 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 the debt service levy. BACKGROUND G.O. Capital Note, Series 2016A In February 2016, the City Council authorized the issuance of a capital note payable to the City of Circle Pines to finance the City of Lino Lakes share of the cost of capital equipment to be used by the North Metro Telecommunications Commission (NMTC). 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 collection of fee revenues from NMTC, 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 2023, collectible in 2024 be canceled by the City Council. By adopting Resolution No. 23-99, the City Council hereby cancels the 2023/2024 debt service levy for this capital note issue.