ADMINISTRATION - Joe Huss, Finance Director
Title
ADJUSTING CERTAIN TAX LEVIES FOR BONDED INDEBTEDNESS FOR FISCAL YEAR 2021
Background
Adoption of the attached resolution to adjust tax levies certified for bonded indebtedness is requested. The resolution includes adjustments to scheduled levies for the City’s General Obligation (G.O.) Special Assessment Improvement Bonds, G.O. Capital Improvement Bonds, and the City’s Capital Equipment Certificates of Indebtedness.
For G.O. Debt issues that are primarily funded through special assessments against the improved property, an analysis of deferred special assessments collections is made by the City’s financial consultant at the time the bonds are issued. This typically results in a calculated deficit of available funds, thus requiring a tax levy to fund repayment of the debt. This calculated levy is certified to the County at the time the bonds are issued as a general ad valorem levy for each year. These levy amounts are reviewed annually to verify their necessity. Finance staff has reviewed the financial position of the City’s debt service funds in 2020 and has determined that certain levies should be adjusted in 2021.
Recommendation
By motion, approve following resolution
Body
WHEREAS, the City of Blaine has scheduled ad valorem debt service levies for 2021 as follows:
|
Bond Description |
Tax Levy |
|
GO Improvement Bonds 2012A |
$ 36,174.48 |
|
GO Improvement Bonds 2013A |
$568,470.00 |
|
GO Improvement Bonds 2014A (68a) |
$ 95,130.87 |
|
GO Improvement Bonds 2014A (68b) |
$ 94,501.49 |
|
GO Equipment Capital Note 2016 (NMTV) |
$124,133.84 |
|
GO Improvement Bonds 2016A (71a) |
$200,722.98 |
|
GO Improvement Bonds 2016A (71b) |
$163,723.65 |
|
GO Improvement Bonds 2016A (71c) |
$294,840.00 |
|
GO Improvement Bonds 2016A (71d) |
$705,600.00 |
|
GO Taxable Improvement Bonds 2017A |
$252,097.48 |
|
GO Equipment Certificate of Indebtedness 2018A |
$253,785.00 |
|
GO Improvement Bonds 2019A |
$555,097.21 |
|
GO Capital Improvement Plan Bonds 2019B |
$485,362.50 |
and
WHEREAS, the City Management has analyzed the city’s debt service balances and determined that the scheduled levies may be adjusted for 2021; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Blaine, Minnesota that the tax levies for bonded indebtedness for fiscal (collection) year 2021 are as follows:
|
Bond Description |
Tax Levy |
|
GO Improvement Bonds 2012A |
$ 50,000.00 |
|
GO Improvement Bonds 2013A |
$575,000.00 |
|
GO Improvement Bonds 2014A (68a) |
$125,000.00 |
|
GO Improvement Bonds 2014A (68b) |
$125,000.00 |
|
GO Equipment Capital Note 2016 (NMTV) |
$ -0- |
|
GO Improvement Bonds 2016A (71a) |
$191,200.00 |
|
GO Improvement Bonds 2016A (71b) |
$155,900.00 |
|
GO Improvement Bonds 2016A (71c) |
$280,800.00 |
|
GO Improvement Bonds 2016A (71d) |
$672,100.00 |
|
GO Taxable Improvement Bonds 2017A |
$400,000.00 |
|
GO Equipment Certificate of Indebtedness 2018A |
$450,000.00 |
|
GO Improvement Bonds 2019A |
$600,000.00 |
|
GO Capital Improvement Plan Bonds 2019B |
$525,000.00 |
|
GO Capital Improvement Plan Bonds 2020A |
$750,000.00 |
PASSED by the City Council of the City of Blaine this 21st day of September 2020.