CC PACKET 03091999 - Laserfiche WebLink

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AUTHORITY AND PURPOSE The Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475. The proceeds of the Bonds will be used to finance various street improvement projects within the City. The composition of the Bonds is as follows: Project Costs` $394,720 Plus: Issuance Costs 14,300 Allowance for Discount Bidding 5,100 Capitalized Interest 14,800 Less: Estimated Interest Earnings (3,920 Total Series 1999A Bonds . $425,000 Includes engineering, administration and contingency. SECURITY AND FINANCING In addition to its general obligation pie dge, the City pledges special assessments levied against benefited property. Special assessments in the principal amount of$85,824 are expected to be filed on or by September 1, 1999 for first collection in 2000. All assessments will be spread over 15 years in equal annual principal and interest installments with interest charged on the unpaid balance at a rate of 2% over the net interest rate on the Bonds. The balance of debt service not paid by these special assessments is expected to be paid from an annual general ad valorem tax levy of approximately $32,020. The February 1, 2000 interest payment will be made from capitalized interest of $14,800 which was included in the principal amount of the issue. Thereafter, special assessments and levy collections will be in an amount sufficient to pay 105% of the interest coming due August 1 in the year of collection and the principal and interest coming due February 1 of the following year. 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 LLP 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. -4 -