CC PACKET 08251992 - Laserfiche WebLink

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i;. used for such purpose, it shall be restored to the required balance as soon as possible out of available net revenues. Additional Bonds Additional parity bonds may not be issued by the City unless the net revenues of the liquor enterprise in the last complete fiscal year shall have been at least equal to 125% of the maximum amount of principal and interest to come due in any future fiscal year during the remaining term of the outstanding Bonds, on all of the outstanding Bonds and on the additional obligations then proposed to be issued. Audited Financial Statements and Coverage Statement The Liquor Fund is audited by an independent certified public accounting firm, as part of the City's financial statements. The Liquor Fund is audited on an accrual basis of accounting. Presented in Appendix III of this Official Statement, are the audited balance sheets and statements of operations of the City's liquor enterprise for the years ended December 30, 1986 through 1991. The net operating revenues generated by the City's liquor store I operations for the past five years is shown below. The 1991 net revenues of the Liquor Store Fund available for debt service are 4.65 times the projected combined maximum debt service of $97,500 on the 1987 Bonds and this Issue (due on January 1, 1993). 1987 1988 1989 1990 1991 Operating Revenues $1,044,611 $ 1,204,438 $ 1,218,035 $ 1,389,888 $ 1,434,643 Operating Expenses (963,488) (1,036,730) (1,014,100) (1,203,359) (1,190,585) Add Back: Depreciation 56,149 93,163 98,934 113,080 112,088 Add: Nonoperating Revenue 51,775 87.835 94,098 97.012 97.594 Net Revenues Available for Debt Service $ 189,047 $ 48 3 ,706 $ 396,967 $ 396,621 $ 453,740 4!' Future Financing The City may issue approximately $2,000,000 of general obligation tax increment bonds within the next 12 months. Litigation The City is not aware of any threatened or pending litigation affecting the validity of the Bonds or the City's ability to meet its financial obligations. f' Legality The Bonds are subject to approval as to certain matters by Dorsey & Whitney of Minneapolis, Minnesota as Bond Counsel. Bond Counsel has not participated in the preparation of this Official Statement except for guidance concerning the following section, 'Tax Exemption," and will not pass upon its accuracy, completeness, or sufficiency. Bond Counsel has not examined - 3 -