06/25/2007 Council Packet - Laserfiche WebLink

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DTC may discontinue providing its services as securities depository with respect to the Obligations at any time by giving reasonable notice to the Issuer or its agent. Under such circumstances, in the event that a successor securities depository is not obtained, certificates are required to be printed and delivered. The Issuer may decide to discontinue use of the system of book - entry-only transfers through DTC (or a successor securities depository). In that event, certificates will be printed and delivered to DTC. The information in this section concerning DTC and DTC's book -entry system has been obtained from sources that the Issuer believes to be reliable, but the Issuer takes no responsibility for the accuracy thereof. AUTHORITY AND PURPOSE The Bonds are being issued pursuant to Minnesota Statutes, Chapters 469 and 475. Proceeds of the Bonds will be used to finance various improvement projects related to the 35W and Lake Drive Interchange and related street improvements within the City. The composition of the Bonds is as follows: Project Costs $4,135,018 Costs of Issuance 35,725 Allowance for Discount Bidding 44,257 Total Bond Issue $4,215,000 SECURITY AND FINANCING The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge tax increment revenues from the City's Tax Increment Financing District No. 1 -11 and a portion of their revenues from Tax Increment Financing District 1 -10. The City will make its first levy for the Bonds in 2007 for collection in 2008. The City will use available City funds and tax increment revenues to pay the February 1, 2008 interest payment. Thereafter, each year's collections of tax increment revenues and tax collections, if collected in full, will be sufficient to pay 105% of the interest coming due on August 1 in the year of collection and the principal and interest coming due on February 1 of the following year. FUTURE FINANCING The City does not anticipate any additional borrowing within the next 90 days. 4