05/29/2007 Council Packet - Laserfiche WebLink

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• • • City of Lino Lakes, Minnesota May 23, 2007 12. Attachments an annual update of certain Official Statement information and report any material events to the national repositories. Springsted currently provides continuing disclosure services for the City under a separate contract. An amendment to that contract adding this issue has been provided to City staff. Sources and Uses of Funds Debt Service Schedule Terms of Proposal DISCUSSION The Bonds are being issued to finance the 35W and Lake Drive Interchange and related street improvements within the City. The sources and uses for the Bonds is shown on page 6. Repayment of the Bonds will be made from a combination of ad valorem property taxes and tax increment (TIF) revenues derived from the City's Tax Increment District Nos. 1 -10 and 1 -11. The majority of revenue for debt service will come from Tax increment District 1 -11, and only a small portion will be financed by pooled revenues from Tax Increment District No. 1-10. The TIF revenue projections were prepared by Springsted based on information provided by the City. The City will make its first levy for the Bonds in 2007 for collection in 2008. The City will use available funds on hand, along with TIF revenues to make the interest payment due February 1, 2008. Thereafter, each year's collection of TIF revenues and taxes will be used to pay the August 1 interest payment due in the year of collection and the February 1 principal and interest payment due in the following year. The Bonds have been structured over a period of 16 years around the projected TIF revenue stream to result in a level annual levy requirement through 2017. The City anticipates using Municipal State Aid allotments from the Department of Transportation to reduce its levy requirement. Beginning in 2018, TIF revenues are projected to be sufficient to make the debt service payments on the Bonds. The debt service schedule for Bonds is shown on page 7 with the following information: • Columns 1 through 4 show the annual principal amounts, estimated interest rates, and the total debt service payment due on the Bonds. • Column 5 shows the 105% overievy which is required by State statutes and serves as a protection to bondholders and the City in the event of delinquencies in the collection of tax increment revenues and /or taxes. - 4 2 - Page 4