CC PACKET 11271995 - Laserfiche WebLink

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SECURITY AND FINANCING In addition to its general obligation pledge, the City pledges tax increment income received from the City's Chandler Place and Kenzie Terrace Housing and Redevelopment Tax Increment Districts. Tax increment revenues are projected to total $3,600,000 over the life of the Issue. The February 1, 1996 interest payment, which is due prior to the first collection of taxes, will be made from surplus tax increment funds currently held by the City. Thereafter, ad valorem tax levies and tax increments, if collected in full, will be sufficient to pay 105% of the August 1 interest due in the year of collection and the February 1 principal and interest payment due in the following year. The City anticipates net requirements of approximately $24,811 annually which will be paid from other available funds at its disposal, including rental proceeds from the school district, thus eliminating the need for a tax levy. FUTURE FINANCING The City does not anticipate any additional borrowing for at least the next 90 days. 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. LEGALITY The Bonds are subject to approval as to certain matters by Dorsey & Whitney P.L.L.P. 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 nor attempted to examine or verify, any of the financial or statistical statements, or data contained in this Official Statement, and will express no opinion with respect thereto. A legal opinion substantially in the form as set out in Appendix I herein will be delivered at closing. TAX EXEMPTION In the opinion of Dorsey & Whitney P.L.L.P., as Bond Counsel, under federal and Minnesota laws, regulations, rulings and decisions in effect on the date of issuance of the Bonds, interest on the Bonds is not includable in gross income for federal income tax purposes or in taxable net income of individuals, estates and trusts for Minnesota income tax purposes. Interest on the Bonds is includable in taxable income of corporations and financial institutions for purposes of the Minnesota franchise tax. Certain provisions of the Internal Revenue Code of 1986, as amended (the "Code"), however, impose continuing requirements that must be met after the -4-