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HomeMy WebLinkAbout10.F.2. Canceling Debt Service Levy for 2013/2014-Res. No. 7350 �� General Business 10. F. 2. ��{�t�:c»}��-�- TO: Mayor and City Council Mark McNeill, City Administrator FROM: Julie Linnihan, Finance Director/Ciry Clerk DATE: 09/03/2013 SUBJECT: Canceling Debt Service Levy for 2013/2014 - Res. No. 7350 (C) Action Sought Offer resolution No. 7350, to cancel the debt service levies as detailed below. Background For several years, the debt service levies for individual debt service issues have not been levied through the traditional process of an individual debt service levy, which is above the General fund preliminary levy, approved each September. The debt service prinicipal and interest payments are made from the payments collected through special assessments, cash position, interest earnings or fund transfers. For the 2013/2014 Levy and Collection years, the following levies could be collected through the budget planning process: Debt Levy Levy Levy to Balance to Maturity allowed Requested Cancel Fund 2004B $253,706 $175,000 $78,706 ' $78,706 2017 2004C $141,855 �$0 $141,855 $141,855 2015 ' 2006A $343,959 $343,959� $0 $0 2017 2007A $8,125 $0 ' $8,125 $8,125 2017 2007B $94,363� $0 _ $94,363 $94,363 2018 2008A $150,742 $0 $150,742 $150,742 2019 2010A $144,728 $0 $144,728 $144,728 2021 ' 2012A $75,265 � $0� $75,265 $75,265 2025 Totals $1,212,743 $518,959 $693,784 $693,784 � The 2004B debt service reflects an increase in the levy from $150,000 in 2012 to $175,000 in 2013, to increase the funding for the 1996 Fire Station construction. This debt service was approved by the voters. The 2006A debt service is for the Road and Infrastructure projects on Valley View CR 83 as well as 2005 and 2005 overlays and reconstruction projects. This debt will mature in 2017. City staff continues to work with Springsted Financial to insure that if a debt service obligation meets an early call date that the city will consider and and act on a debt restructuring program. At this time there are no refinancing options. Recommendation Staff recommends the approval of resolution No. 7350, canceling debt service levy for 2013/2014. Staff recommends the cancellation of the debt service issues as defined in the table above, in the amount of$693,784. This will provide for two separate debt service levies, 2004B and 2006A in the amount of $518,959 presented in the Proposed Property Tax Levy Resolution, # 7349. Budget Impact The 2014 budget will allow for two debt service levies in 2014, Issue 2004B and 2006A as presented in the 2013/2014 Proposed Property Tax Levy Resolution. All other debt service levies will be cancelled by this resolution. Relationship to Vision Maintain the City's strong financial health (c). Requested Action Offer resolution No. 7350, Canceling debt service levies for 2013/2014, and move its adoption. Attachments: Debt Service Details Resolution No. 7350 DEBT SERVICE ISSUE DETAILS Maturity BOND Amount to Levy for 2014 Date of Debt Details of Issue Firc Building-Vierling Drive G.O. Buildin Refundin Bonds, Series 2004B $ 253,706.25 2017 (refunded 1997A) 2004 Reconstruct&Overlay, G.O. Im rovement Bonds, Series 2004C $ 141,855.00 2015 Weindt Acres Va1leyView Cnty Rd 83, 2005 Overlay, 2005 &2006 G.O. Improvement Bonds, Series 2006A $ 343,959.00 2017 Reconstruct. 4 Lane 17th Avc-Cnty Rd. G.O. Im rovement Bonds, Series 2007A $ 8,125.00 2017 83 &Philli Drive 2007 Reconstruct. &Pike G.O. Im rovement Bonds, Series 2007B $ 94,363.00 2018 Lake Road Reconstruct, Ovcrlay, G.O. Im rovement Bonds, Series 2008A $ 150,742.00 2019 Beckrich Pro�. 2009 Reconstruct, 2010 G.O. Improvement Bonds, Series 2010A $ 144,727.79 2021 Recon.,Overla , Church Add. Rcfund 2004A&2004D (2004A W. Dean Lake, Vierling/CR 15 &Valley G.O. Im rovement Refundin Bonds, Series 2012A $ 75,26531 2025 View) (2004D PW Bld .) The 2004B Building Bonds provide for the Fire Building,which allows for levy by votcr approval. The amount for 2014 is$175,000 RESOLUTION N0.7350 A RESOLUTION CANCELING DEBT SERVICE LEVY FOR 2013/2014 BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE,COUNTY OF SCOTT, MINNESOTA,that the following debt service levies are canceled; 2004B GO Building Refunding Bonds $ 78,706 2004C GO Improvement Bonds $141,855 2007A GO Improvement Bonds $ 8,125 2007B GO Improvement Bonds $ 94,363 2008A GO Improvement Bonds $150,742 2010A GO Improvement Bonds $144,728 2012A GO Improvement Bonds $ 75,265 BE IT FURTHER RESOLVED that the following irrevocable transfer is made from the Building Internal Service Fund to the respective debt service fund in 2014 with the difference of debt service needs being paid from the fund balance in the debt service fund. Adopted in regular session of the City Council of the City of Shakopee, Minnesota held this 3`d day of September, 2013 Mayor of the City of Shakopee ATTEST: City Clerk