2000-11-08 Packet - Laserfiche WebLink

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AUTHORITY AND SECURITY FOR THE BONDS 5650,000 General Obligation Improvement Bonds of 2000 The Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475. At closing Bond Counsel will render an opinion that the Bonds are valid and binding general obligations of the City of Centerville. The Bonds will be payable primarily from special assessments against all benefitted prop- erty. 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. Interest on the Bonds is not includable in gross income of the recipient for federal income tax purposes or in taxable net income for Minnesota income tax purposes, and is a preference item for purposes of the computation of the federal alternative minimum tax, or the compu- tation of the Minnesota altemative minimum tax imposed on individuals, trusts and estates, but such interest is includable in the computation of "adjusted current earnings" used in the calculation of fed - eral alternative minimum taxable income of corporations, and is subject to Minnesota franchise taxes on corporations (including financial institutions) measured by income and the alternative minimum tax base. See Appendix A — Form of Legal Opinion. PURPOSE $650,000 General Obligation Improvement Bonds of 2000 The purpose of the Bonds is 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. See Estimated Source and Application of Funds herein for addi- tional information. -io -