2002-09-25 CC Packet - Laserfiche WebLink

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AUTHORITY AND PURPOSE Authority The Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475, as amended. At closing Bond Counsel will render an opinion that the Bonds are valid and binding general obligations of the City of Centerville. Bonds will be payable primarily from special assessments against all benefitted property. The full faith and credit of the City is pledged to their payment and the City has validly obligated itself to levy additional ad valorem taxes in the event of any deficiency in the Debt Service Account established for this issue. Taxes will be levied upon all of the taxable property within the City and without limitation of amountInterest is ex- cluded from gross income for United States income tax purposes and is excluded, to the same extent, from both gross and taxable net income for State of Minnesota income tax p':"'J'Oses (other than Minnesota franchise taxes measured by income and imposed on corporations and financial Institutions.) Interest is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations or the Minnesota alternative minimum tax applicable to individuals, estates or trusts. However, for the purposes of computing the federal alternative minimum tax imposed on corporations, such interest is taken into account for the purpose of determining adjusted current earnings. No opinion will be expressed by Bond Counsel regarding other state or federal consequences caused by the receipt or accrual of interest on the Bonds or arising with re- spect to ownership of the Bonds. See Appendix A - Legal Opinion. Purpose Proceeds of the Bonds will be used to provide moneys for the financing of assessable improvements within the City, including but not limited to streets, sanitary sewer, water main & line extensions, storm sewer, sidewalks and curb & gutter. ESTIMATED SOURCE AND APPLICATION OF FUNDS I. Source of Funds General Obligation Improvement Bonds of 2002 II. Application of Funds $635.000 Estimated Costs to be Financed: Pheasant Marsh Phase 2 engineering contingency $463,327 71,249 46,333 Total Estimated Costs to be Financed $580,909 I I I I I Add Estimated Issuance Costs: issuance costs capitalized interest (16 Months) underwriter's discount (1.400% of par) Total Estimated Issuance Costs $ 15,150 32,720 8.890 Subtotal 56.760 $637,669 ( 1,l39) ( 1,530) Less: estimated construction fund earnings estimated contribution from City Par Amount of Bond Issue ~61i,lliJ] -9- j