07/24/2006 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 Registrar. 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 transfers through DTC (or a successor securities depository). In that event, certificates will be printed and delivered. 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. THE SERIES 2006C BONDS Authority and Purpose The Series 2006C Bonds are being issued pursuant to Minnesota Statutes, Chapters 469 and 475. Proceeds of the Series 2006C Bonds will be used to finance a portion of the Project between the City and the YMCA (see Project description in "RELATED FINANCING" herein). The composition of the Series 2006C Bonds is as follows: Project Costs $2,351,788 Capitalized Interest 48,502 Costs of Issuance 32,650 Allowance for Discount Bidding 27,060 Total Series 2006C Bonds $2,460,000 Security and Financing The Series 2006C Bonds are general obligations of the City for which the City pledges its full faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge tax abatement revenues to be derived by the City from specified properties. Taxes will be abated for a period of 15 years, commencing in levy year 2007 for taxes payable in 2008. The City will make its first levy for the Series 2006C Bonds in 2006 for collection in 2007. Capitalized interest has been included in the principal amount of the Series 2006C Bonds in an amount sufficient to pay the interest due on February 1, 2007. The August 1, 2007 through February 1, 2010 interest payments will be paid from a combination of general ad valorem taxes and tax abatement revenues. Beginning with the August 1, 2009 interest payment, tax abatement revenues, if collected in full, will be sufficient to pay 105% of the interest payment due on August 1 in the year of collection and the principal and interest payment due on February 1 of the following year.