Agenda - Council - 10/12/1993 - Laserfiche WebLink

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OFFICIAL STATEMENT $2,250,000* CITY OF RAMSEY, MINNESOTA GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 1993A Introductory Statement This Official Statement contains certain information relating to the City of Ramsey, Minnesota (the "City") and its issuance of $2,250,000 General Obligation Tax Increment Refunding Bonds, Series 1993A (the "Bonds" or the "Issue"). The Bonds are general obligations of the City for which the City pledges its full faith and credit and power to levy direct general ad valorem taxes without limit as to rate or amount. The Bonds are being issued pursuant to Minnesota Statutes, Chapters 469 and 475 and the City's Home Rule Charter. Purpose The proceeds of the Bonds will be used to refund the 1997 through 2007 maturities, totaling $2,150,000, of the City's $2,800,000 General Obligation Tax Increment Bonds, Series 1987A (the "1987 Bonds" or the "Refunded Bonds") dated August 1, 1987. The 1997 through 2007 maturities will be called for redemption on February 1, 1996 at a price of par plus accrued interest. The refunding will be accomplished by means of a "crossover" refunding mechanism. From the proceeds of the Bonds, the City will establish an escrow account to be held by a bank to be named by the City. Amounts in the escrow account will be invested in special obligations of the United States Treasury or other obligations of the United States or of its agencies, which shall mature in such amounts and at such times as to be available to pay (i) the interest on the Bonds through the time of redemption, which shall be the first call date of the 1987 Bonds (February 1, 1996); and (ii) the principal amount due as of the first call date of February 1, 1996 of all the callable maturities of the 1987 Bonds. Until such time as the 1987 Bonds are called for early redemption, the City will continue to make payments of the principal of and interest on the 1987 Bonds. When the 1987 Bonds have been cancelled by redemption, the City will then cross over and make payment on the General Obligation Tax Increment Refunding Bonds, Series 1993A which will have no principal payments prior to redemption of the 1987 Bonds. Actuarial services necessary to insure the adequacy of the escrow account to provide timely payment of principal of and interest on the Bonds will be performed by a certified public accounting firm. The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Bonds offered for sale. Any such increase or reduction will be in a total amount not to exceed $100,000 and will be made in multiples of $5,000 in any of the maturities. In the event the principal amount of the Bonds is increased or reduced, any premium offered or any discount taken will be increased or reduced by a percentage equal to the percentage by which the principal amount of the Bonds is increased or reduced. -1-