ITEM 3.5 Resolution 14-68ots-1101; 490
MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Finance
Daniel Jordet, ASD
Monday, October 13, 2014
PRESENTER(s):
REVIEWED BY:
ITEM #:
Daniel Jordet, ASD
Lori Johnson, City Administrator
3.5
AGENDA ITEM DETAILS
RECOMMENDATION:
It is recommended that the City Council adopt Resolution # 2014-68 revising the property tax levies
detailed in the existing bond covenants.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BAC KG ROU N D/J U ST I F I CATION:
The City is able to take advantage of accumulated cash in some of the bond sinking funds to lower the
property tax levies that were promised in the bond covenants when the bonds were sold. The Wright
County Auditor's Office has requested that the City do so by resolution rather than simply revising the
stated amounts in the preliminary levy resolution adopted on September 22, 2014. The attached
resolution fulfills this request. It does not change the levy adopted on September 22, 2014 but
reconciles the amounts promised in the original bond covenants and the actual cash flow needs for
payment of the bonds.
SUPPORTING DOCUMENTS: X ATTACHED ❑ NONE
• Resolution 2014-68
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
Move adoption of Resolution 2014-68 reducing the property tax levy for taxes payable in 2015 for debt
service.
BUDGET INFORMATION
FUNDING: BUDGETED: X YES
2015 Budget and Property Tax Levy
❑ NO
ACTION TAKEN
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
COMMENTS:
v
E
K
0
RESOLUTION NO. 2014-68
CITY OF OTSEGO
COUNTY OF WRIGHT, MINNESOTA
A RESOLUTION REDUCING THE PROPERTY TAX LEVY FOR
TAXES PAYABLE IN 2015 FOR DEBT SERVICE
WHEREAS, the Wright County Auditor's records show the original debt levies pledged by
the City Council at the time of sale as follows:
G.O. Improvement Refunding Series 2012A $ 31,146
G.O. Improvement Refunding Series 2011A 272,430
G.O. Improvement Refunding Series 201 OD 106,189
G.O. Capital Improvement Refunding Series 201013 521,139
G.O. Certificates of Indebtedness Series 2010A 53,576
TOTAL RECORDED LEVY $ 984,480 ;and
WHEREAS, the City of Otsego has, in its most recent audited financial statement, recorded
cash in excess of reserve requirements in the Debt Sinking Funds maintained for these
bonds; and
WHEREAS, the Otsego City Council has considered restructuring of the Pay 2015 property
tax levy such that the above amounts may be reduced by use of a portion of the excess funds
available, in turn reducing the property tax levy for Pay 2015; and
WHEREAS, the debt levies have been adjusted or cancelled based on revenue collections,
cash balances reported and projections.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF OTSEGO, MINNESOTA:
That the following amounts are approved adjusted property tax levies to be levied as
property taxes payable in 2015 for debt service purposes:
G.O. Improvement Refunding Series 2012A $ -0-
G.O. Improvement Refunding Series 201 IA 163,968
G.O. Improvement Refunding Series 201 OD 36,032
G.O. Capital Improvement Refunding Series 2010B 410,000
G.O. Certificates of Indebtedness Series 2010A -0-
TOTAL LEVY FOR DEBT SERVICE $ 610,000
2. That a copy of this resolution be transmitted to the Wright County Auditor.
4. That these debt service property tax levy adjustments are applicable to taxes payable for
2015 only and that any future changes in levy will be adopted at such time as is proper and
prudent.
MOTION BY:
SECOND BY:
THOSE OPPOSED:
ADOPTED by the City Council of the City of Otsego this 13th day of October 2014.
ATTEST:
Tami Loff, City Clerk
2
CITY OF OTSEGO
Jessica Stockamp, Mayor