Agenda - Council - 07/12/2022 - Laserfiche WebLink

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UNAUDITED FINANCIAL STATEMENTS OF THE CHARTER SCHOOL APPENDIX E to this Official Statement contains the unaudited financial statements of the Charter School as of and for the eleven-month period ended May 31, 2022. The unaudited financial statements contained in APPENDIX E have been prepared by the Charter School's finance manager,BerganKDV,and have not been reviewed, audited, or examined by any independent accounting firm. See "APPENDIX E— UNAUDITED INTERIM FINANCIAL STATEMENTS OF THE BORROWER FOR THE ELEVEN- MONTH PERIOD ENDED MAY 31, 2022"in this Official Statement. THE BUDGET PROJECTION The Charter School has prepared the budget projection and related assumptions included in APPENDIX C to this Official Statement. The Budget Projection is based on the assumptions made by management of the Charter School as to, among other things, future enrollment levels, future costs and future revenues. The Budget Projection is for the fiscal years of the Charter School ending June 30, 2022 through June 30,20[ ]. The Budget Projection(including the notes thereto) should be read in its entirety. The Budget Projection is based on various assumptions that represent only the beliefs of the Charter School's management as to the most probable future events and are subject to material uncertainties. The Budget Projections assume that the Charter School and the Authorizer will renew the Charter Contract (after the expiration of the current term ending on June 30, 2023) through the period of the Budget Projection. No assurances can be given that the Charter School will, in fact, be able to generate sufficient revenue and attain the enrollment levels as stated in the Budget Projection, and variations from the Budget Projection for each of such matters should be expected to occur. Accordingly,the operations and financial condition of the Charter School in the future will inevitably vary from those set forth in the Budget Projection, and such variance may be material and adverse. See "BONDHOLDERS' RISKS — Budget Projection"in this Official Statement. The Charter School has not assumed any responsibility after the issuance of the Series 2022 Bonds to update the Budget Projection or to provide any financial forecasts or projections in the future. The Underwriter and the Issuer have made no independent inquiry as to the assumptions on which the Budget Projection is based and assume no responsibility therefor. See"APPENDIX C—BUDGET PROJECTION" in this Official Statement. TAX MATTERS [[TO BE UPDATED BY BOND COUNSEL]] Tax Exemption of the Series 2022A Bonds In the opinion of Taft Stettinius & Hollister LLP as Bond Counsel to the Issuer, under existing State of Minnesota (the "State") and federal laws, regulations, rulings, and decisions in effect on the date of delivery of the Series 2022A Bonds (which excludes pending legislation which may have a retroactive effect), and assuming continuing compliance by the Issuer, the Company and the Charter School with covenants made to satisfy requirements of the Internal Revenue Code of 1986, as amended (the "Code"), interest on the Series 2022A Bonds is not includable in gross income for federal income tax purposes and, to the same extent,is not includable in taxable net income of individuals,estates,and trusts for State income tax purposes. Interest on the Series 2022A Bonds is subject to the State franchise tax imposed on corporations, including financial institutions. Interest on the Series 2022B Bonds is taxable as ordinary income for federal income tax purposes. 41