2007 03-20 CCP - Laserfiche WebLink

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Rating: The Bonds are expected to be non -rated. Funding Sources: The Bonds are general obligations of the City and as such are secured by a pledge of the City's full faith, credit, and taxing powers. Under Minnesota Statutes, Section 475.521, the City has levied taxes in the year 2006 in anticipation of this financing and further intends to levy taxes in the years 2007 through 2026, for collection in the years 2008 through 2027. Discussion Issues: Principal payments maturing in 2009 through 2017 are structured to maintain a level tax levy in the amount of approximately $45,000 per year. Principal payments maturing in 2018 through 2028 are structured to maintain a level tax levy in the amount of approximately $75,000 per year. The first interest payment on the Bonds will be February 1, 2008, and semiannually thereafter on February 1 and August 1. The projected debt service and flow of funds are attached to this Report. We have reviewed all outstanding indebtedness for the City and find that there are no immediate refunding opportunities for the City at this time. We will continue to monitor the market and the call dates for the City and alert you to any future opportunities. Bank Qualified: The City will not be issuing more than $10,000,000 in direct or 501 (c) (3) conduit financings, therefore the Bonds will be "bank qualified". Bank qualified status broadens the market and achieves lower interest rates. Prepared by Ehlers & Associates, Inc.