HomeMy WebLinkAbout5.a. Reallocation of Debt Service FundsCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
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CITY COUNCIL MEETING DATE: February 6, 2003
AGENDA ITEM: Reallocation of Surplus Debt Service Funds
AGENDA SECTION:
Department Heads Report
PREPARED BY: Jeff May, Finance Director
AGENDA
IRM #5 A
ATTACHMENTS: Resolution
APPROVED BY:
For your discussion this evening is a resolution drafted by Briggs & Morgan, our bond counsel, that
allows us to use surplus debt service funds once the debt has been paid off or defeased. This was
brought about because of the approximate $8,400,000 in bonds that have been called and defeased
in the last month. We called 8 bonds and defeased 5 others reducing our debt load and saving
hundreds of thousands of dollars in future interest payments. In order to make all of this work some
of the funds had deficits and others had surpluses. To make everything balance there will be
transfers between these funds to balance things out. Also, some of these funds will have future
special assessment collections that will add to their surpluses. That is why we have drafted this
resolution — to allow us the ability to take these "future" surplus funds and apply them to other
outstanding debt issues.
In the past, we have had to pass a resolution each time a debt issue is paid off and there is a surplus
of funds to reallocate where those surplus funds will be moved to. This resolution allows staff to
apply any future surpluses to other debt issues to help them with future payments. I will always
inform you of where those funds will be reallocated to but not necessarily with a formal resolution
because we will have that on file.
RECOMMENDED ACTION: Motion to adopt a RESOLUTION ALLOCATING SURPLUS FUNDS.
COUNCIL ACTION:
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2003 -
RESOLUTION ALLOCATING SURPLUS FUNDS
WHEREAS, pursuant to a resolution adopted by the City Council on December 3, 2002,
the City has provided for the redemption and /or defeasance of various general
obligation bonds heretofore issued by the City (the "Defeased Bonds ").
WHEREAS, the City will continue to receive special assessments which were
heretofore levied and pledged to the payment of the Defeased Bonds which, as a result
of the redemption and defeasance of the Defeased Bonds, are no longer needed to pay
debt service on the Defeased Bonds.
WHEREAS, the City has heretofore and may hereafter provide for the payment- or
prepayment in full of various other issues of general obligation bonds at or in advance
of their maturity, which payment or prepayment will result in the receipt of special
assessment therefore levied and no longer needed to pay debt service on the
obligations.
WHEREAS, it is desirable that any such funds no longer needed to pay debt service on
general obligation bonds of the City (the "Surplus Funds ") be allocated, from time to
time, to the payment of debt service on other outstanding general obligation bonds
heretofore or hereafter issued by the City.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Rosemount,
Minnesota, as follows:
The Finance Director is hereby directed to apply any Surplus Funds received
by the City from time to time to the payment of debt service on general
obligation bonds heretofore or hereafter issued by the City.
2. The Finance Director shall advise the City Council on a periodic basis as to
the use of the Surplus Funds.
A
RESOLUTION 2003 -
ADOPTED this 6 th day of February, 2003.
William H. Droste, Mayor
ATTEST:
Linda J. Jentink, City Clerk
CERTIFICATION
I hereby certify that the foregoing is a true and correct copy of a resolution presented to
and adopted by the City Council of Rosemount at a duly authorized meeting thereof,
held on the 6 th day of February, 2003, as disclosed by the records of said City in my
possession.
(SEAL)
Linda J. Jentink, Rosemount City Clerk
Motion by: Seconded by:
Voted in Favor:
Voted Against:
Members Absent: