05/22/2006 Council Packet - Laserfiche WebLink

Home Search

• • • City of Lino Lakes, Minnesota May 16, 2006 5. Authority for the Issue 6. Repayment Terms 7. Security and Source of Payment (a) Security (b) Source of Payment (c) Payment Cycle 8. Prepayment Provisions The Bonds are being issued pursuant to Minnesota Statutes, Chapter 475. In addition, the Abatement Bonds are being issued pursuant to Minnesota Statutes, Chapter 469 and the Utility Bonds are being issued pursuant to Minnesota Statutes, Chapter 444. The Abatement Bonds will mature annually February 1, 2011 through 2023. The Utility Bonds will mature annually February 1, 2008 through 2017. Interest on both series of Bonds will be payable semi- annually each February 1 and August 1, commencing February 1, 2007. The Bonds will be general obligations of the City secured by its full faith and credit and taxing power. The Abatement Bonds will be repaid with tax abatement revenues. The Utility Bonds will be repaid from net revenues of the City's water and sewer utilities. In regards to the Abatement Bonds, each year's collection of tax abatement revenues will be used to make the August 1 interest payment in the year of collection and the February 1 principal and interest payment in the following year. Included in the par amount of the Abatement Bonds, is capitalized interest in the amount necessary to make the interest payments due February 1, 2007 through February 1, 2009. In regards to the Utility Bonds, net revenues of the City's water and sewer utilities will be available to make the debt service payments as they come due. In regards to the Abatement Bonds, the City may elect on February 1, 2017 and any day thereafter, to prepay the Bonds due on or after February 1, 2018 at a price of par plus accrued interest. In regards to the Utility Bonds, they will not be callable prior to their stated maturity dates. - 5 7 - Page 2