CR 06-114 Resolution Approving Debt Service Levies for 2007 Tax Levy, at Levels under those Required in the bond Covenant
September 28, 2006
Council Report 2006-114
RESOLUTION APPROVING DEBT SERVICE LEVIES FOR 2007 TAX LEVY,
AT LEVELS UNDER THOSE REQUIRED IN THE BOND COVENANT
Proposed Action
Staff recommends adoption of the following motion: Move to approve Resolution 2006-067 "Approving debt service
levies for 2007 tax levy at levels under those required in the bond covenant".
Adoption of resolution 2006-067 will provide verification to Hennepin County that the City has determine that
adequate revenues and/or reserves exist to pay existing debt service as provided for in the bond covenant.
Overview
One of the responsibilities of Hennepin County is to monitor a City's debt service levies pursuant to their general
obligation bond covenants. These covenants set forth tax levy requirements to ensure adequate funds are available to
pay debt service. When adequate reserves exist a city may decrease the tax levy for a particular debt service issue. If
the debt service levy is reduced a city must pass a resolution to that effect and forward it to Hennepin County for their
records.
Staffhas analyzed the debt service revenues for our outstanding bonded debt and has determined that special
assessment revenues and/or reserves are adequate for the four general obligation bond issues. This allows us to
reduce the tax levy to our residents.
In September the council passed the 2007 preliminary tax levy resolution that included the reduced debt service levies.
At that time we did not adopt a resolution indicating the reason why the debt service levies were less than the required
amount. This resolution corrects that omission and will provide Hennepin County with the appropriate documentation
for our debt service levies.
Primary Issues to Consider
Adequate revenues in the form of special assessments support the three Permanent Improvement Bond issues.
All four G.O. bond issues have adequate reserves to support scheduled bond payments.
Supportin2 Information
Resolution 2006-067
~~
Christine M. Harkess. CPA, CGFM
Finance Director
CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 2006-067
RESOLUTION APPROVING DEBT SERVICE LEVIES FOR 2007 TAX LEVY,
AT LEVELS UNDER THOSE REQUIRED IN THE BOND COVENANT
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF HOPKINS, MINNESOTA,
That based upon staff analysis of specials assessments currently levied for Permanent
Improvement Bonds and available reserves within all debt service funds listed below that the debt
service levies for 2007 for the following issues be levied at amounts less than that provided by the bond
covenants.
Bond Issue
$850,000 G.O. Permanent Improvement Revolving Bonds of 1999D
$1,305,000 G.O. Refunding Bonds of2001- Improv Rev of 1993D
$820,000 G.O. Refunding Bonds of2001- Park & Rec of 1992
$960,000 G.O. Permanent Improvement Revolving Bonds of 2002B
Net Debt
Service Levv
$ 26,000
$ 62,000
$175,000
$ 59,000
BE IT FURTHER RESOLVED that the City Clerk is hereby ordered and directed to transmit a certified copy of
this resolution to the County Auditor of Hennepin County, Minnesota.
Adopted by the City Council of the City of Hopkins this 3rd day of October 2006.
By
Eugene Maxwell, Mayor
ATTEST:
Terry Obermaier, City Clerk