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NORTHLAND <br /> <br />SECURITIES <br /> <br />EXHIBIT A <br /> <br />Issues Related to Debt S.F. 330 H.F. 75I/S.F. 748 <br />Basic concept <br /> <br />Limitations on General Obligation bonds <br />paid 100% by utilities, assessments, TIF, <br />etc.?? <br /> <br />No new debt allowed if the bond issue <br />increases a municipality's total debt levy <br />for taxes payable 2004 and 2005 over the <br />total for 2003. <br /> <br />No <br /> <br />Action required to be grand fathered in <br /> <br />1. Sold bonds by prior to June 1 or <br />2. Party to a contract or letter of <br />understanding with federal or state <br />government prior to June 1 for a project <br />to be funded with bonds after June 1; or <br />3. Entered into a contract with a builder <br />or supplier for a project or acquisition <br />prior to June 1 to be funded with bonds <br />at a later date. <br /> <br />Limit Chapter 429 bonds or other bonds <br />with a certified lev3, if tax levy written <br />down by other.revenues? <br />Temporary restrictions or permanent <br />restrictions? <br /> <br />Lease Revenue bonds impacted? <br /> <br />Referenda bonds allowed if bonds not <br />issued yet? <br /> <br />No, if finding made at the time of the <br />sale that tax levy is not expected to be <br />nSeded. <br /> <br />Temporary. Affects only debt with <br />increases for taxes payable in 2004 and <br />2005 <br /> <br />Yes, if tax supported. <br /> <br />No, if bonds not issued by June 1 or <br />contracts not obligated by June 1 <br /> <br />Certain tax-supported debt exempted? No <br />Other Questions <br /> <br />What if project consists of multiple <br />construction contracts, of which only <br />some have been awarded prior to June <br />17 (Language seems to require contract <br />for entire bond amount) <br /> <br />Debt can be issued, but many types of new, <br />tax-supported debt will no longer be <br />treated as a special levy. All increases in <br />property taxes (debt and operating levies <br />combined), other than special levies, are <br />subject to a reverse referendum for taxes <br />payable in 2005 after the truth in taxation <br />hearing and final adoption of levy. <br />No limit on issuance, but deficiency levy is <br />within levy limits; bonds are "limited <br />obligations" rather than full general <br />obligations. <br /> <br />1. Bonds for which a specia} levy exists for <br />payable 2003; or <br />2.Bonds for projects which have binding <br />contract for some or all of project by May 1, <br />but bonds not issued yet; or <br />3. Voter approved bonds for which the <br />election was held before May 1 <br /> <br />No, but any shortfall in revenues in future <br />would be included in total levy subject to <br />reverse referendum. <br /> <br />Permanent beginning with taxes payable <br />2005. Transition year of taxes payable 2004 <br />in which lev), limits exist but with no <br />provisions for additional tax supported <br />debt <br /> <br />Yes, if bonds not sold by May 1_, 2003 <br /> <br />Yes, if election was held before Ma), 71. <br />Treatment of bonds for which election held <br />after May'l is unclear. <br /> <br />Yes, including most, but not all, <br />exemptions in 275.70 including anticipation <br />financing and equipment certificates <br />What about bonds issued in last two years, <br />which have no contracts yet? <br /> <br />A contract for only a portion of bond <br />proceeds will suffice. <br /> <br />Northland Securities, Inc. 45 South 7"' Street, Suite 2500, Minneapolis, MN 55402 'h~, ~re~: 800-851-2920 ..~i, 612-851-5900 Fax 612-851-5987 <br /> ~wa~,v.northlan dsecurities.¢om <br /> <br /> I,,'~ernber NASD and $1PC <br /> 28' <br /> <br /> <br />