2004-142 Council Resolution - Laserfiche WebLink

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• • City of Lino Lakes, Minnesota September 23, 2004 The Water Improvement Portion The water improvement portion of the Bonds will be used to finance improvements to the City's sanitary sewer and water utility related to the Marshan Estates project, the 62nd Street Utility projects, and the Holly Drive projects. The water improvement 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 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 debt service schedule for the water improvement portion of the Bonds is shown on page 10. The water improvement portion is structured with even annual debt service payments over a term of 15 years. 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 years ending 2003. The projected maximum annual debt service payable from net revenues of the water utility, including the water improvement portion of this Issue, is projected to be approximately $568,313. 2003 Operating Revenues $1,064,326 Less: Operating Expenses (809,789) Add Back: Depreciation 304,382 Add Back: Operating Transfers for 301,355 Connection Fees Add: Earnings on Investments 3,203 Net Revenues Available for Debt $ 863,477 Service Springsted is pleased to again be of service to the City of Lino Lakes. Respectfully submitted, s" J S v7,u2G9 . d / PI Pt o � e SPRINGSTED Incorporated mb Provided to Staff: Rebate and Continuing Disclosure Contract Amendments Page 5