Agenda - Council - 07/28/1981 - Laserfiche WebLink

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-12- After 2000, the annual credits decrease to per year, with the final ones being made in illustration of the annual credits is shown 3. Combined Debt Service Needs about $400,000 2009. An in Figure .6. The four types of debt payments and credits being made by the. MWCC are going on at the same time. Therefore, while they are legally separated, and different payment approaches are used, they are essentially one obligation as a part of the cost allocation system. From 1971 to 1984, the annual payments and credits are scheduled to increase from $14.6 million to a high of $19.4 million, a change of 23.6 percent overall, but because of a mixture of increases and decreases, the average of the annual changes is an increase of 1.85 percent per year. Figure 7 shows these annual payments and credits in graphic form. The bottom space represents the local government debt ser- vice and the middle space represents the current value credits. Therefore, the middle line is the total of the amounts credited to local governments. The local government debt service is scheduled to be fully retired during 1997 and the current value credits, largely completed in 2000, are all processed by 2009. The top space is the Metropolitan Council - issued bonds and the assumed debt that is being retired by the Council. According to the bond sale agreement, the MWCC makes a payment each October to the Council for the debt service that is due during the next five calendar quarters, less any funds that are on hand in the Debt Service Fund. Since the Council expends the money as bond retirement and interest payment dates fall due, the Council has the money from one to five quarters prior to when it is needed. Therefore, the top line on Figure 7 illustrates all the payments and credits that are funded each year in the cost allocation system and through the service availabililty charge. After averaging about $17.1 million for the year through 1984, the "ballooned" maturities of the 1975 refunding issue are reflected in the "peak" from 1985 to 1988. Following 1990, the debt requirements decrease until all improvements and acquisitions have been paid for in 2009. 4. Bonds Subject to Early Call a. Discussion of Existing Bonds In most instances, long term bond issues will have an early call (bond retirement) feature.. Typically there is a state- ment printed on the bond itself stating that all bonds maturing after a specific date will be callable at the option of the issuer. There may be a premium of one quarter percent to two percent required of the issuer if the call is exercised, although in some long term issues, there is no premium offered.