10/23/2006 Council Packet - Laserfiche WebLink

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• • • Year Levy (See Exhibit B) 4.04. The City Clerk is directed to file a certified copy of this resolution with the Manager of Property Records and Taxation of Anoka County and to obtain the certificate required by Section 475.63 of the Act. 4.05. It is hereby determined that the estimated collection of the foregoing Taxes will produce at least five percent in excess of the amount needed to meet when due, the principal and interest payments on the Bonds. The tax levy herein provided will be irrepealable until all of the Bonds are paid, provided that the City Administrator may annually, at the time the City makes its tax levies, certify to the Manager of Property Records and Taxation the amount available in the Debt Service Fund to pay principal and interest due during the ensuing year, and the Manager of Property Records and Taxation will thereupon reduce the levy collectible during such year by the amount so certified. Section 5. Refunding; Findings; Redemption of Refunded Bonds. 5.01. The Refunded Bonds are the $5,350,000 Lino Lakes Economic Development Authority Lease Revenue Bonds, Series 1998A (City of Lino Lakes, Minnesota Lease Obligation), dated August 1, 1998, issued by the Lino Lakes Economic Development Authority (the "Authority ") pursuant to the Trust Indenture between the Authority and U.S. Bank Trust National Association (the "Trustee ") dated August 1, 1998 (the "Indenture ") and secured by the Lease - Purchase Agreement between the Authority and City dated August 1, 1998 (the "Lease "). Of the original principal amount of the Refunded Bonds, $4,210,000 in principal amount is outstanding and callable on any date. The City has determined to prepay a portion of the lease payments due under the Lease, in an amount necessary to redeem, on December 1, 2006 (the "Redemption Date "): (a) the 2013 through 2019 maturities of the Refunded Bonds, and (b) a portion of the Term Bonds maturing on February 1, 2011, such portion being equal to the mandatory sinking fund installment due on February 1 2011 ($290,000) and $55,000 of the mandatory sinking fund installment due on February 1, 2010; the aggregate principal amount of Refunded Bonds to be redeemed being $3,345,000 (the "Refunded Principal "). It is hereby found and determined that based upon information presently available from the City's fmancial advisers, the issuance of the Bonds is consistent with covenants made with the holders thereof and is necessary and desirable for the reduction of debt service cost to the municipality. 5.02. On or prior to the delivery of the Refunding Bonds, the Mayor and the City Administrator are hereby authorized and directed to execute on behalf of the City a Partial Refunding Escrow Agreement (the "Escrow Agreement ") with the Escrow Agent in substantially the form now on file with the City Clerk. All essential terms and conditions of the Escrow Agreement including payment by the City of reasonable charges for the services of the Escrow Agent, are hereby approved and adopted and made a part of this resolution, and the City covenants that it will promptly enforce all provisions thereof in the event of default thereunder by the Escrow Agent. 12