HomeMy WebLinkAbout2018-180 Council ResolutionCITY OF LINO LAKES
RESOLUTION NO. 18-180
RESOLUTION REDUCING THE 2018/2019 DEBT SERVICE TAX LEVY FOR G.O.
BONDS, SERIES 2018A
WHEREAS, a tax levy is scheduled for 2018 to be collected in 2019 to pay the debt service on
G.O. Bonds, Series 2018A; and,
WHEREAS, funds are available from other sources to satisfy a portion of such debt service
requirements; and,
WHEREAS, it is the desire of the City Council to reduce 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
G.O. Bonds, Series 2018A is hereby reduced to $200,000.
Adopted by the Council of the City of Lino Lakes this 10th day of December, 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 Peing taken thereon, the following voted in favor thereof:
Ra ferty, Maher, Manthey, Stoesz, Reinert
The following voted against same:
none
ATTEST:
Julia Bartell, C' y Cle
CITY COUNCIL
10111%% AGENDA ITEM 2E
STAFF ORIGINATOR: Sarah Cotton
MEETING DATE: December 3, 2018
TOPIC: Consider Resolution No. 18-180, Reducing the 2018/2019 Debt
Service Tax Levy for G.O. Bonds, Series 2018A
VOTE REQUIRED: 3/5
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 or reducing the
debt service levy.
BACKGROUND
G.O. Bonds, Series 2018A
On November 13, 2018, the City Council awarded the sale of $6,915,000 General Obligation
Bonds, Series 2018A to finance various street reconstruction projects (LaMotte and West
Shadow Lake Drive Areas) and various water and sewer utility projects. At the time of issuance,
an annual tax levy was included in the bond documents for the payment of future debt service.
It was anticipated that the annual debt service would be satisfied through collections of special
assessments and an annual tax levy.
The adopting resolution includes an original certified and scheduled debt service levy of
$233,158.95 for Pay 2019. Staff has reviewed the resources available for payment of the first
years' debt service and concluded that adequate resources (excess premium, favorable costs of
issuance, prepaid assessments, etc) are available to reduce the levy to $200,000, the amount that
was levied for debt service when the preliminary budget and levy was adopted in September.
By adopting Resolution No. 18-180 the City Council hereby reduces the 2018/2019 debt service
levy for this bond issue.
RECOMMENDATION
Staff recommends adoption of Resolution No. 18-180.
ATTACHMENTS
Resolution No. 18-180