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<br /> <br /> <br /> <br />Presale Report <br />City of St. Anthony, Minnesota <br />November 10, 2015 <br />Page 3 <br /> <br />Continuing Disclosure: Because the City has more than $10,000,000 in outstanding debt (including <br />this issue) and this issue is over $1,000,000, the City will be agreeing to <br />provide certain updated Annual Financial Information and its Audited <br />Financial Statement annually as well as providing notices of the occurrence of <br />certain “material events” to the Municipal Securities Rulemaking Board (the <br />“MSRB”), as required by rules of the Securities and Exchange Commission <br />(SEC). The City is already obligated to provide such reports for its existing <br />bonds, and has contracted with Ehlers to prepare and file the reports. <br />Arbitrage Monitoring: <br /> <br /> <br />Because the Bonds are tax-exempt securities/tax credit securities, the City <br />must ensure compliance with certain Internal Revenue Service (IRS) rules <br />throughout the life of the issue. These rules apply to all gross proceeds of the <br />issue, including initial bond proceeds and investment earnings in construction, <br />escrow, debt service, and any reserve funds. How issuers spend bond <br />proceeds and how they track interest earnings on funds (arbitrage/yield <br />restriction compliance) are common subjects of IRS inquiries. Your specific <br />responsibilities will be detailed in the Signature, No-Litigation, Arbitrage <br />Certificate and Purchase Price Receipt prepared by your Bond Attorney and <br />provided at closing. We recommend that you regularly monitor compliance <br />with these rules and/or retain the services of a qualified firm to assist you. <br />Risk Factors: Advance Refunding: The Bonds are being issued for the purpose of <br />“advance” refunding prior City debt obligations. Only one advance refunding <br />of an original tax-exempt debt obligation is permitted under current IRS rules. <br />This refunding is being undertaken based in part on the following <br />assumptions: <br /> Since the new Bonds will extend the “call” date for this debt, we are <br />assuming that the City does not expect to have revenues available to <br />pre-pay the current obligations prior to this new call date. <br /> Tax Increment generated from the project may be inadequate to pay <br />for debt service, thus the City would need to levy taxes. <br />Other Service Providers: This debt issuance will require the engagement of other public finance service <br />providers. This section identifies those other service providers, so Ehlers can <br />coordinate their engagement on your behalf. Where you have previously used <br />a particular firm to provide a service, we have assumed that you will continue <br />that relationship. For services you have not previously required, we have <br />identified a service provider. Fees charged by these service providers will be <br />paid from proceeds of the obligation, unless you notify us that you wish to pay <br />them from other sources. Our pre-sale bond sizing includes a good faith <br />estimate of these fees, so their final fees may vary. If you have any questions <br />pertaining to the identified service providers or their role, or if you would like <br />to use a different service provider for any of the listed services please contact <br />us. <br />Bond Attorney: Dorsey & Whitney LLP <br />118