09/25/2006 Council Packet - Laserfiche WebLink

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• • • (b) The Series 1998A Bonds are secured by lease payments by the City pursuant to a Lease - Purchase Agreement between the Authority and the City dated August 1, 1998 (the "Lease). (c) Under the Lease, the City has the option to prepay lease payments in whole or in part, and thereby redeem the outstanding Series 1998A Bonds in whole or in part. (d) The City is authorized by Minnesota Statutes, section 475.521 (the "Act ") to finance certain capital improvements under an approved capital improvement plan by the issuance of general obligation bonds of the City payable from ad valorem taxes. Capital improvements include (among other things) acquisition or betterment of public lands, buildings or other improvements for the purpose of a city hall and public safety facility. (e) The city hall and police station portions of the Complex (such portions together referred to as the "Facilities ") make up more than 79.5 percent of the total square footage of the Complex. The Facilities are "capital improvements" within the meaning of the Act. (f) On September 11, 2006 the City held a public hearing regarding a five year capital improvement plan (the "Plan"), and regarding issuance of bonds in the maximum principal amount of $3,950,000 to finance the acquisition of the Facilities through prepayment of a portion of the lease payment under the Lease in an amount allocable to the Facilities, accomplished by issuance of bonds to refund an allocable portion of the Series 1998A Bonds, all in accordance with the Act. On the same date, the City Council approved the Plan providing for issuance of such refunding bonds. (g) The City is authorized by Minnesota Statutes, Chapter 475, and specifically Section 475.67, Subdivision 3 thereof, to issue and sell its general obligation bonds to refund obligations and the interest thereon before the due date of the obligations, if consistent with covenants made with the holders thereof, when determined by the City Council to be necessary or desirable for the reduction of debt service cost to the City or for the extension or adjustment of maturities in relation to the resources available for their payment; (h) Minnesota Statutes, Section 475.67, subdivision 4 permits the sale of refunding obligations during the six month period prior to the date on which the obligations to be refunded may be called for redemption; (i) It is necessary and desirable to reduce debt service costs that the City issue approximately $3,025,000 General Obligation Capital Improvement Plan Refunding Bonds, Series 2006B (the "Bonds ") to refund the 2011 through 2019 maturities of the Authority's Series 1998A Bonds together with $55,000 of the principal amount of the 2010 maturity of the Series 1998A Bonds, which $3,345,000 in aggregate principal amount is currently outstanding and is callable on February 1, 2006 and any date thereafter. (j) The outstanding principal amount of the Series 1998A Bonds is $4,210,000, and proceeds of the Bonds will be used to refund no more than 79.5 percent of such outstanding principal amount, which represents the portion of the Series 1998A Bonds allocable to the Facilities (compared to the Complex as a whole).