CC PACKET 02082005 - Laserfiche WebLink

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Proposed Issue: $1,690,000 General Obligation Improvement Bonds Series 2005A Purpose: The Bonds will finance the 2005 street reconstruction program. Dcseription e The bonds are being issued for the purpose of financing the construction of roadways, sanitary sewer- and water improvements. The improvement bonds are being issued pursuant to Minnesota Statues, Chapter 429. Terni/Call Fca tori o The Improvement Bonds are being issued for a 15 -year period. Principal on the bonds will be due on February 1 in the years 2007 through 2021. Bonds matwing February 1, 2013 and thereafter will be subject to prepayment at the discretion of the City on February 1, 2012. Funding Solarees. The Bonds are general obligations of the City and as such are secured by a pledge of the City's In 11 faith, credit and taxing powers. It is the intent of the City to levy $341,000 of the special assessments for the project to benefiting property owners in the years 2005 through 2019 for collection in year 2006 through 2020 at a rate of 2.0% per anmun over the true interest cost of the Bonds. The required.105% coverage on the Bonds shows a need for the City to levy approximately $125,000 annually for this project. The City will provide equity to the project in the amount of approximately $157,000. These fiords will come from the City's Storm Water Fund. Discussion Issues: Principal payments maturing in 2007 through 2021 are structured to maintain level debt service in the amount of approximately $162,000 per year and assumes special assessments are paid on a level payment basis. The first interest payment on the Bonds will be February 1, 2006 and semiannually thereafter on February 1 and August 1. The projected debt service and flow of fiords are attached to this report. 26