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• CITY OF BLAINE No. x.x <br /> ADMINISTRATIVE POLICY Date 6/15/2010 <br /> Revised: <br /> ADMINISTRATIVE FEES FOR PRIVATE ACTIVITY REVENUE BOND FINANCING <br /> 1.0 PURPOSE: <br /> To establish the fee charged by the City of Blaine to recover administrative costs for <br /> services related to the issuance of private activity revenue bonds (conduit debt.) <br /> 2.0 POLICY: <br /> For debt issued by the City of Blaine as conduit debt under Minnesota statutes and IRS <br /> code for which the proceeds are to be loaned to a Borrower and be repaid through <br /> revenue and proceeds from the project for which the proceeds were borrowed, the City <br /> shall charge a fee pursuant to the following schedule: <br /> 2.1 For new and refunding issues, an upfront fee equal to 1%of the first five-million <br /> dollars ($5,000,000) of principal of the bonds, plus %2 of 1%of the next$15 <br /> million of principal of the bonds, plus % of 1% for the remainder of funds <br /> borrowed that exceeds $20 million of bond principal payable at bond closing. <br /> 2.2 For Host City issuance %2 of 1%of the gross bond proceeds, payable upfront at <br /> bond closing. <br /> 2.3 For Host approval, 1/8 of 1%of the amount of project costs for the Blaine portion <br /> • of the project. <br /> 3.0 PROCEDURE: <br /> Upon request from a borrower for the City to use its statutory authority to issue conduit <br /> debt, the city will notify the borrower of the administrative fee for issuing conduit debt. <br /> The fee will then be made part of the loan agreement between the City and the borrower. <br /> 4.0 ADMINISTRATIVE RESPONSIBILITY: <br /> It is the responsibility of the Finance Department to implement this policy. <br /> Full Name <br /> City Manager <br /> • <br /> C:\Userskicyle.howard\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\SFOHXS85\Conduit Debt.doc <br />