CC RES 07-028 RESOLUTION PROVIDING FOR THE SALE OF $2,050,000 GENERAL OBLIGATION IMPROVEMENT BONDS SERIES 2007A

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'ntho • I CITY OF ST. ANTHONY VILLAGE, MINNESOTA PRESALE REPORT FEBRUARY 139 2007 Proposed Issue: $2,050,000 General Obligation Improvement Bonds Series 2007A Purpose: The Bonds will finance the 2007 road reconstruction projects. Description: These Bonds are being issued for the purpose of financing the construction of roadways and sewer and water improvements and are being issued pursuant to Minnesota Statues, Chapter 429 and 475. Term/Call Feature: The Improvement Bonds are being issued for a 15-year period. Principal on the bonds will be due on February 1 in the years 2009 through 2023. Bonds • maturing February 1,2015 and thereafter will be subject to prepayment at the discretion of the City on February 1, 2014. Funding Sources: The Bonds are general obligations of the City and as such are secured by a pledge of the City's full faith, credit and taxing powers. Under Minnesota Statutes, Chapter 429, principal and interest on the Bonds is payable from special assessments against benefiting property owners and a tax levy. The special assessments amount is$523,454 and will be levied in the years 2007 through 2021 for collection in 2008 through 2022 at a rate of 2.0%per annum over the true interest cost of the Bonds. The remaining balance will be paid from a tax levy. The required 105%coverage on the Bonds shows a need for the City to levy approximately$144,000 annually for this project. Discussion Issues: Principal payments maturing in 2008 through 2023 are structured to maintain level debt service in the amount of approximately $190,000 per year and assumes special assessments are paid on a level payment basis. The first interest payment on the Bonds will be February 1, 2008 and semiannually thereafter on February 1 and August 1. The projected debt service and flow of funds are attached to this report. Prepared by Ehlers&Associates, Inc.