Administration - Alison Bong, Deputy Finance Director
Title
Title
Adjusting Certain Tax Levies for Bonded Indebtedness for Fiscal Year 2023
end
Executive Summary
Staff recommends Council adoption of the resolution below to adjust tax levies certified for bonded indebtedness.
Background
Staff recommends Council adoption of the resolution below to adjust tax levies certified for bonded indebtedness. 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 as reviewed the financial position of each of the City’s debt service funds and has determined that scheduled levies for certain bond issues be adjusted in 2023. In total, the proposed preliminary 2023 debt service levy for all debt service funds is $4,800,000 the same as that levied for all debt service funds in 2022.
Strategic Plan Relationship
The debt service levy is a key component in meeting the city’s strategic priority of Financial Stability.
Board/Commission Review
The aggregate proposed debt service levy remains unchanged from that presented to Council at the Council Workshop of September 12.
Financial Impact
Long-term management of the debt service levy allows for strategic allocation of other levies for operations and other Council established priorities.
Public Outreach/Input
No public notification required.
Staff Recommendation
By motion, approve following resolution
Attachment List
Body
WHEREAS, the City of Blaine has scheduled ad valorem debt service levies for 2023 as follows:
|
Bond Description |
Tax Levy |
|
GO Improvement Bonds 2013A |
$573,930.00 |
|
GO Improvement Bonds 2014A (68a) |
$ 92,516.69 |
|
GO Improvement Bonds 2014A (68b) |
$ 95,659.17 |
|
GO Equipment Capital Note 2016 (NMTV) |
$122,493.80 |
|
GO Improvement Bonds 2016A (71a) |
$198,477.85 |
|
GO Improvement Bonds 2016A (71b) |
$162,652.61 |
|
GO Improvement Bonds 2016A (71d) |
$709,590.00 |
|
GO Taxable Improvement Bonds 2017A |
$250,590.19 |
|
GO Equipment Certificate of Indebtedness 2018A |
$251,160.00 |
|
GO Improvement Bonds 2019A |
$562,615.69 |
|
GO Capital Improvement Plan Bonds 2019B |
$487,987.50 |
|
GO Improvement Bonds 2020A |
$514,667.06 |
|
GO Improvement Bonds 2021A (78A) |
$464,183.01 |
|
GO Improvement Bonds 2021A (78B) |
$111,827.63 |
and
WHEREAS, the City Management has analyzed the city’s debt service balances and determined that the scheduled levies may be adjusted for 2023; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Blaine, Minnesota that the preliminary tax levies for bonded indebtedness for fiscal (collection) year 2023 are as follows:
|
Bond Description |
Tax Levy |
|
GO Improvement Bonds 2013A |
$300,000.00 |
|
GO Improvement Bonds 2014A (68a) |
$100,000.00 |
|
GO Improvement Bonds 2014A (68b) |
$100,000.00 |
|
GO Equipment Capital Note 2016 (NMTV) |
$ -0- |
|
GO Improvement Bonds 2016A (71a) |
$190,000.00 |
|
GO Improvement Bonds 2016A (71b) |
$160,000.00 |
|
GO Improvement Bonds 2016A (71d) |
$650,000.00 |
|
GO Taxable Improvement Bonds 2017A |
$250,000.00 |
|
GO Equipment Certificate of Indebtedness 2018A |
$125,000.00 |
|
GO Improvement Bonds 2019A |
$575,000.00 |
|
GO Capital Improvement Plan Bonds 2019B |
$500,000.00 |
|
GO Capital Improvement Plan Bonds 2020A |
$550,000.00 |
|
GO Improvement Bonds 2021A (78A) |
$437,250.00 |
|
GO Improvement Bonds 2021A (78B) |
$112,750.00 |
|
GO Improvement Bonds 2022 |
$750,000.00 |
PASSED by the City Council of the City of Blaine this 19th day of September 2022.