2010-031 Council Resolution - Laserfiche WebLink

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• • • City of Lino Lakes, Minnesota April 1, 2010 The Street Improvement Portion of the Bonds will be paid from special assessments filed against benefited properties. Special assessments currently in place for the Street Improvement Portion of the Bonds will be sufficient to pay the February 1, 2011 principal and interest payment on the Street Improvement Portion of the Bonds. Thereafter, beginning with the August 1, 2011 interest payment, each year's collection of assessments will be used to pay the August 1 interest payment due in the collection year and the February 1 principal and interest payment due in the following year. It is not anticipated that the City will be required to levy for the Street Improvement Portion of the Bonds. The Water Utility Portion of the Bonds will be repaid from net revenues of the City's water utility. Pursuant to Minnesota Statutes, Chapter 444 and the resolution awarding the Water Utility Portion of the Bonds, the City will covenant to maintain water rates in an amount sufficient to generate revenues to support the operation of the water utility and to pay debt service. The City is required to annually review the budget of the water utility to determine whether current rates and charges are sufficient and to adjust them as necessary. The City has two outstanding bond issues which are also being repaid in whole or in part from net revenues of the City's water utility. The table below shows the net revenues available for debt service of the City's water utility for the fiscal year ending 2008. The projected maximum annual debt service payable from net revenues of the water utility, including the Water Utility Portion of the Bonds, is projected to be approximately $511,126. Operating Revenues Less: Operating Expenses Add Back: Depreciation Add: Investment Earnings Net Revenues Available for Debt Service Maximum Annual Debt Service Remaining Net Revenues Available $1,058,493 (959,043) 411,992 90.992 $602,434 (511,126) $91 308 The success of any refunding transaction is in a large part dependent upon market conditions at the time the Bonds are sold. Springsted will continue to monitor the market prior to the sale date and will keep you apprised of any change in conditions that might affect the success of this refunding. Springsted Incorporated is pleased to again be of service to the City of Lino Lakes. Respectfully submitted, SPRINGSTED Incorporated SAS akb Page 6