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22 <br />Executive Summary of Proposed Debt <br />Proposed Issue: <br />$2,675,000 General Obligation Improvement Bonds, Series 2015A <br />Purposes: <br />The proposed issue includes financing for the 2015 Road Reconstruction <br />Project <br />It is the intent of the City to levy special assessments in the amount of <br />approximately $621,309.23 to benefiting property owners in 2015 for <br />collection in years 2016 through 2030 at a rate of 2% over the True Interest <br />Cost of the proposed Bonds. Annual assessments are paid on an equal <br />principal basis. <br />The City anticipates receiving approximately $250,000 (40 %) in prepayments <br />on the special assessments from the projects this year so the Bond has been <br />reduced by this amount. Remaining debt service will be paid from a tax levy, <br />which will not be required for collection until 2016. We have assumed <br />capitalized interest through the February 1, 2016 payment in order to offset <br />any immediate levy requirement. <br />Authority: <br />The Bonds are being issued pursuant to Minnesota Statutes, Chapters: <br />• 429 and 475 <br />Because the City is assessing at least 20% of the project costs, the Bonds can <br />be a general obligation without a referendum and will not count against the <br />City's debt limit. <br />The Bonds will be general obligations of the City for which its full faith, credit <br />and taxing powers are pledged. <br />Term /Call Feature: <br />The Bonds are being issued for a 16 -year term. Principal on the Bonds will be <br />due on February 1 in the years 2017 through 2031. Interest is payable every <br />six months beginning February 1, 2016. <br />The Bonds maturing on and after February 1, 2025 will be subject to <br />prepayment at the discretion of the City on February 1, 2024 or any date <br />thereafter. <br />Bank Qualification: <br />Because the City is issuing, or expects to issue, more than $10,000,000 in tax - <br />exempt obligations during the calendar year, the City will be not able to <br />designate the Bonds as "bank qualified" obligations. <br />Rating: <br />The City's most recent bond issues were rated AA by Standard & Poor's. The <br />City will request a new rating for the Bonds. <br />If the winning bidder on the Bonds elects to purchase bond insurance, the <br />rating for the issue may be higher than the City's bond rating in the event that <br />the bond rating of the insurer is higher than that of the City. <br />Presale Report March 24, 2015 <br />City of St. Anthony, Minnesota Page 1 <br />