Agenda Packets - 1993/05/10 - Laserfiche WebLink

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Summary of General Obligation Direct Debt iGross Less: Debt Net Debt Service Funds* Direct Debt G.O. Debt Supported by Tax Increments $9,645,000 $(596,636) $9,048,364 G.O. Debt Supported by Utility Revenues 2,920,000 -0- 2,920,000 * Debt service funds are as of March 31, 1993, and include money to pay both principal and interest. Prior-Year Defeasance of Debt In prior years, the Citydefeased certain general obligation bonds by placing cash and - - investments in an irrevocable trust to provide for all future debt service payments. Trust account assets and the related liability for the defeased bonds are not included in the City's audited financial statements, nor in the total outstanding indebtedness of the City listed in this Official Statement. The following bond issues are considered defeased: $1,860,000 General Obligation Sewer Improvement Bonds of 1965 $2,640,000 General Obligation Improvement Bonds of 1966 As of December 31, 1991, the principal amount outstanding of the defeased bonds totaled $815,000. . City of Blaine Fire Improvement Bonds On April 18, 1991, the City of Blaine issued $4,450,000 General Obligation Fire Improvement Bonds. The Cities of Blaine, Mounds View and Spring Lake Park have entered into a Joint Powers Agreement following an affirmative election held in each community which provides for their sharing of the debt service costs of Fire Improvement Bonds. The Bonds are general obligations of the City of Blaine and are backed by that City's full faith and credit and unlimited power to levy general ad valorem taxes. The Cities' current contracts with the Fire Department provide a formula for allocating between the Cities the annual capital and operating costs of the Fire Department's fire protection services. Pursuant to the Agreement, the formula will now also be used to determine each of the Cities' respective share of debt service costs on the Fire Improvement Bonds. The initial share of debt service for each city was 67.65% for Blaine, 21.15%for Mounds View and 11.20%for Spring Lake Park. The percentage of total annual Fire Department costs each City is responsible for is adjusted each year, since the formula is based on each City's proportionate number of fire calls to the total number of calls made, and each City's proportionate tax capacity to the total combined tax capacity of all three Cities. The pro-rata share of debt service costs that the Cities will pay ` will thus be adjusted each year. Mounds View and Spring Lake Park will remit their respective debt service payments to the City of Blaine for payment on the Fire Improvement Bonds. • - 9 -