Agenda Packets - 1993/05/10 - Laserfiche WebLink

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OFFICIAL STATEMENT • $2,310,000* CITY OF MOUNDS VIEW, MINNESOTA GENERAL OBLIGATION WATER REVENUE REFUNDING BONDS, SERIES 1993A Introductory Statement This Official Statement contains certain information relating to the City of Mounds View, Minnesota (the "City") and its issuance of $2,310,000 General Obligation Water Revenue • Refunding Bonds, Series 1993A (the "Bonds" or the "Issue"). The Bonds are general obligations of the City for which the City pledges its full faith and credit and power to levy direct general ad valorem taxes without limit as to rate or amount In addition, the City pledges revenues from the Water Utility of the City for the repayment of the Issue. Authority and Purpose The Bonds are being issued pursuant to Minnesota Statutes, Chapter 475 and Section 444.075. The proceeds will be used to refund in advance of their stated maturities all of the bonds maturing in the years 2001 through 2013 of the City's General Obligation Water Revenue Bonds, Series 1991 A, dated May 1, 1991 (the "Refunded Bonds.") The Refunded Bonds will be called for redemption on February 1, 2000 at a price of par. • The refunding will be accomplished by means of a"crossover" refunding mechanism. From the proceeds of the Bonds, the City will establish an escrow account to be held by a bank to be named by the City. Amounts in the escrow account will be invested in special obligations of the United States Treasury or other obligations of the United States or of its agencies, which shall mature in such amounts and at such times as to be available to pay (i) the interest of the Bonds through the time of redemption, which shall be the first call date of the Refunded Bonds (February 1, 2000), and (ii) the principal amount due, as of the first call date of February 1, 2000 of all the callable maturities of the Refunded Bonds. Until such time as the Refunded Bonds are called for prepayment, the City will continue to make payment of the principal of and interest on the Refunded Bonds. When the Refunded Bonds have been cancelled by redemption, the City will then "cross over" and pay debt service on the Bonds, which will have no principal payments prior to redemption of the Refunded Bonds. Actuarial services necessary to insure the adequacy of the escrow account to provide timely payment of the debt service for which the escrow account is obligated will be performed by a certified public accounting firm. * The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Bonds offered for sale. Any such increase or reduction will be in a total amount not to exceed . $50,000 and will be made in multiples of$5,000 in any of the maturities. In the event the principal amount of the Bonds is increased or percentage equal to the percentage yr which the prremium incipal ad or mount of thdiscount e Bondsken l is increased orl be reduced or by a reduced. - 1 -