HomeMy WebLinkAbout2018-119 Council ResolutionCITY OF LINO LAKES
RESOLUTION NO. 18-119
RESOLUTION CANCELING THE 2018/2019 DEBT SERVICE TAX LEVY FOR G.O.
IMPROVEMENT BOND, SERIES 2013A
WHEREAS, a tax levy is scheduled for 2018, to be collected in 2019 to pay the debt service on
the G.O. Improvement Bonds, Series 2013A; and,
WHEREAS, funds are available from other sources to satisfy such debt service requirements;
and,
WHEREAS, it is the desire of the City Council to cancel such debt service levy for 2018,
collectible in 2019.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Lino Lakes,
Minnesota, that the tax levy scheduled for 2018, to be collected in 2019 to pay the debt service
on the G.O. Improvement Bonds, Series 2013A is hereby cancelled.
Adopted by the Council of the City of Lino Lakes this 24th day of September, 2018.
The motion for the adoption of the foregoing resolution was introduced by Council Member
Rafferty and was duly seconded by Council Member Maher and upon
vote being taken thereon, the following voted in favor thereof:
Rafferty, Maher, Manthey, Stoesz, Reinert
The following voted against same:
none
Jeff Reinert, a or
ATTEST:
Cuuliarke Bartell, City 1 Jerk
CITY COUNCIL
AGENDA ITEM 2C
STAFF ORIGINATOR: Sarah Cotton
MEETING DATE: September 24, 2018
TOPIC: Canceling Debt Service Tax Levy(s)
VOTE REQUIRED: Simple Majority
INTRODUCTION
State Law requires that the County Auditor maintain bond registers that have information relating
to any bonded debt issued by a local taxing authority within the county. For bonds that have tax
levies pledged for payment of all or part of the debt, the county auditor must certify that any
required tax levies have been made. State Law requires the county to levy the amount originally
certified and scheduled, unless the taxing authority passes a resolution canceling the debt service
levy.
BACKGROUND
G.O. Improvement Bonds, Series 2013A
In June 2013, the City Council awarded the sale of $615,000 Taxable General Obligation
Improvement Bonds, Series 2013A to finance the extension of Otter Lake Road north of CSAH
14. At the time of issuance, an annual tax levy was included in the bond documents for the
payment of future debt service. It was fully anticipated that the annual debt service would be
satisfied by collections of special assessments and through other funding sources, and that the
tax levy would be evaluated and canceled, if possible, on an annual basis.
Following an analysis of the resources available for payment of the ensuing year debt service,
staff has concluded that adequate resources are available, and recommends that the debt service
tax levy for 2018, collectible in 2019 be canceled by the City Council. By adopting Resolution
No. 18-119 the City Council hereby cancels the 2018/2019 debt service levy for this bond issue.
G.O. Capital Note, Series 2016A
In February 2016, the City Council authorized the issuance of a capital note payable to the City
of Circle Pines to finance the City of Lino Lakes share of the cost of capital equipment to be used
by the North Metro Telecommunications Commission. At the time of issuance, an annual tax
levy was included in the bond documents for the payment of future debt service. It was fully
anticipated that the annual debt service would be satisfied by collection of fee revenues from the
North Metro Telecommunications Commission, and that the tax levy would be evaluated and
canceled, if possible, on an annual basis.
Following an analysis of the resources available for payment of the ensuing year debt service,
staff has concluded that adequate resources are available, and recommends that the debt service
tax levy for 2018, collectible in 2019 be canceled by the City Council. By adopting Resolution
No. 18-120, the City Council hereby cancels the 2018/2019 debt service levy for this capital note
issue.
Taxable G.O. Improvement Refunding Bonds, Series 2016B
In September 2005, the City Council awarded the sale of $5,550,000 Taxable General Obligation
Improvement Bonds, Series 2005A to finance public improvements in the Legacy at Woods Edge
development. At the time of issuance, an annual tax levy was included in the bond documents
for the payment of future debt service. It was fully anticipated that the annual debt service would
be satisfied by special assessments and that the tax levy would be evaluated and canceled, if
possible, on an annual basis.
At the October 24, 2016, City Council meeting, the City Council awarded the sale of $1,980,000
Taxable General Obligation Improvement Refunding Bonds, Series 2016B to refinance the
outstanding portion of the 2005A Series Bonds issued to fund the Legacy at Woods Edge
Improvements. At the time of issuance of the refunding bonds, an annual tax levy was included
in the bond documents for the payment of future debt service. It was fully anticipated that the
annual debt service would be satisfied by special assessments, TIF, interfund loans (if needed),
and future land sale proceeds and that the tax levy would be evaluated and canceled, if possible,
on an annual basis.
Following an analysis of the resources available for payment of the ensuing year debt service,
staff has concluded that adequate resources are available, and recommends that the debt service
tax levy for 2018, collectible in 2019 be canceled by the City Council. By adopting Resolution
No. 18-121, the City Council hereby cancels the 2018/2019 debt service levy for this bond issue.
RECOMMENDATION
Staff recommends adoption of Resolution No. 18-119, 18-120, and 18-121.
ATTACHMENTS
Resolution No. 18-119, 18-120, and 18-121