2004-03-10 CC Meeting - 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. Interest is excluded 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 purposes (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 respect 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. SECURITY AND ESTIMATED SOURCE AND USES OF FUNDS Security 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 amount. Estimated Source and Uses of Funds I. Source of Funds General Obligation Temporary Improvement Bonds, Series 2004 $780,000 II. Uses of Funds Estimated Costs to be Financed: Estimated Issuance Costs Estimated Underwriter's Discount $748,437 $24,675 7,800 32,475 Total Costs to be Financed $780,912 Less: Rounding ( 912) Total $780000 .8.