CC PACKET 08251992 - Laserfiche WebLink

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OFFICIAL STATEMENT $405,000 CITY OF ST. ANTHONY, MINNESOTA LIQUOR STORE REVENUE REFUNDING BONDS, SERIES 1992A Introductory Statement This Official Statement contains certain information relating to the City of St. Anthony, Minnesota (the "City") and its issuance of $405,000 Liquor Store Revenue Refunding Bonds, Series 1992A (the "Bonds" or the "Issue"). The Bonds will be special obligations of the City payable solely from net revenues of the City's municipal liquor stores and shall not constitute a debt for which the faith and credit or taxing powers of the City will be pledged. Authority and Purpose The Bonds are being issued pursuant to Minnesota Statutes, Section 426.19. The proceeds of the Bonds, together with $69,000 the City will contribute from the Reserve Account on the 1987 Bonds, will be used to refund the 1994-1998 principal maturities, totaling $415,000, of the City's $690,000 Liquor Store Revenue Bonds, Series 1987, dated July 1, 1987 (the 1987 Bonds" or the "Refunded Bonds"). The 1994-1998 maturities of the 1987 Bonds will be called for redemption by the City on January 1, 1993 at a price of par. The January 1, 1993 principal and interest payment on the 1987 Bonds will be paid when due. The 1987 Bonds were originally issued to finance the construction of improvements to one of the City's three municipal liquor stores. Security and Financing The Bonds will be special obligations of the City payable solely from net revenues of the City's municipal liquor stores and shall not constitute a debt for which the faith and credit or taxing powers of the City will be pledged. Net revenues are defined as gross revenues less all expenses of operation and maintenance, including a reasonable reserve for emergencies. The City anticipates a net savings of approximately $19,300 due to the refunding. This Issue has been structured to provide even debt service payments, with an average annual savings of approximately $9,170. The Bonds are being issued on a parity of lien with the 1987 Bonds. The proceeds of the Bonds, net of the underwriter's discount, costs of issuance and amounts to be deposited in the Reserve Account, will be deposited into a City held escrow account at the time of settlement of the Bonds and will be used to redeem the principal amount of the 1994-1998 maturities of the 1987 Bonds on January 1, 1993 at a price of par. The City will deposit in the Reserve Account securing this.Issue and the 1987 Bonds $40,500 from Bond proceeds. The City expects to fully fund the Reserve Account to a level equal to the maximum annual debt service (estimated to be $96,000) within two years from net revenues of its municipal liquor stores. The City pledges, as long as any Bonds are outstanding, to continue its ownership and operation of the liquor enterprise as a revenue-producing entity in the manner authorized and subject to restrictions imposed by the statutes and laws of the State of Minnesota. In addition, the City pledges that it will at all times maintain operating policies necessary to assure that net revenues will always be sufficient to meet all payments of principal of and interest on the Bonds - 1 -