2002-09-25 CC Packet - Laserfiche WebLink

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-- --1 STATUTORY DEBT LIMITI Minnesota Statutes, Section 475.53, states that a city may not incur or be subject to a net debt in excess of two percent (2%) of its estimated market value. Net debt is, with limited exceptions, debt paid solely from ad valorem taxes. Computation of Legal Debt Margin as of September 3, 2002, plus this issue: 200112002 Estimated Market Value Times 2% of Estimated Market Value $180,650,300 x .02 Statutory Debt Limit Amount of debt applicable to debt limit: Total Bonded Debt (includes this issue) Less: General Obligation Water Revenue Bonds General Obligation Sewer and Water Revenue Bonds General Obligation Refunding Bonds General Obligation Improvement Bonds (includes this issue) Total debt applicable to debt limit Legal debt margin $ 3.613.006 $ 3,410,000 ( 270,000) ( 535,000) ( 50,000) ( 2,555,000) $ 0 $ 3.613.006 NO CONTINUING DISCLOSURE The Securities and Exchange Commission (the "SEC") has promulgated certain amendments to Rule 15c2.12 under the Securities Exchange Act of 1934 (17 c.P.R. ~240.15c2-12) (the "Rule") that make it unlawful for an underwriter to participate in the primary offering of municipal securities in a principal amount of$I,OOO,OOO or more unless, before submitting a bid or entering into a purchase contract for the Bonds, it has reasonably deter- mined that the issuer or an obligated person has undertaken in writing for the benefit of the bondholders to pro- vide certain disclosure infonnation to prescribed infonnation repositories on a continuing basis or unless and to the extent the offering is exempt from the requirements of the Rule. The principal amount of the Bonds is less than $1,000,000. The City hereby represents that it has not issued before the date of issuance of the Bonds, and that it reasonably expects that it will not issue after the date of issuance of the Bonds, other Bonds of the City of substantially the same security and providing financing for the same general purpose or purposes as the Bonds. Consequently, this Board hereby finds that the Rule is inapplicable to the Bonds, because the aggregate princi- pal amount of the Bonds and any other bond issue to be integrated with the Bonds thereunder is less than $1,000,000. Therefore, the City will not enter into any undertaking to provide continuing disclosure of any kind with respect to the Bonds. l Effective June 2, 1997, and pursuant to Laws of Minnesota for 1997, Chapter 231, Section 33, any lease revenue or public project I revenue bond issues/agreements over $999,999 are subject to the statutory debt limit. Lease revenue or public project revenue bond Issues/agreements under $999,999 are not subject to the statutory debt limit. , - 12-