1993-07-15 Resolution 79 - Laserfiche WebLink

Home Browse Search

li ~~ 7 THE REFUNDWG PROGRAM (COIIt'd) The Government Obligations to be purchased and deposited with the Escrow Trustee will bear interest at such rates and will be scheduled to mature at such times and in such amounts so that, when paid according to their respective terms, sufficient moneys, together with the amount of cash then on deposit with the Escrow Trustee, will be available to make full and timely payment of all principal, interest and redemption premium due with respect to all outstanding Taxable 1991 Bonds on the date fixed for redemption. Mathematical calculations of the adequacy of the Escrow Fund Account to fully provide for the redemption of the Taxable 1991 Bonds will be verified by H.J. Umbaugh & Associates, Certified Public Accountants, at the time of delivery of the Taxable 1993 Bonds. See "CPA Verification" herein. All moneys and Governmental Obligations on deposit with the Escrow Trustee, including any earnings thereon, are pledged solely and irrevocably for the benefit of the holders of the Taxable 1991 Bonds. SECURITY FOR THE TAXABLE 1993 BONDS The Taxable 1993 Bonds shall constitute an indebtedness of the Authority payable in accordance with the terms of the Trust Agreement and secured by the pledge and assignment to the Trustee of the funds and accounts defined and described therein, including the Lease Rental and other funds as defined in the Trust Agreement (collectively the "Pledged Funds"). The Trust Agreement creates a continuing pledge by the Authority to the bondholders to pay principal and interest on the Taxable 1993 Bonds, until the principal sum shall be fully paid. Funds for the Lease Rental will be paid by the Commission directly to the Trustee (for the account of the Authority) pursuant to the terms of the Lease. The Lease Rental will be payable beginning on Januazy 28, 1994. Thereafter, Lease Rental is payable semi-annually on July 28th and January 28th. Following the bond sale, a schedule of Lease Rental payments will be provided with the first semi-annual Lease Rental beginning January 28, 1994. A Form of Addendum.to Lease is included in Appendix D. In accordance with the Lease, after the bond sale, each semi-annual Lease Rental is to be reduced to an amount which will equal the principal and interest payments due in each bond year, rounded upwazd to the next. $1,000 plus $2,000 for payment of fiscal agency chazges, divided by two. The Lease Rental to be paid by the Commission during the term of the Lease is required to be in amounts sufficient to pay the principal of and interest on the Taxable 1993 Bonds. Such annual rental is payable from a special benefits tax. The Lease Rentai is secured by a pledge of unlimited ad valorem property taxes levied on all taxable properties in the District which has the same taxing boundaries as the City. The Bonds do not constitute an indebtedness, liability or loan of the credit of the City or any political subdivision thereof. Each yeaz when the City prepazes its budget, the Redevelopment Commission shall levy a special tax upon all taxable property in the District in a total amount sufficient, together with all other funds (from sources other than special taxes) (including Tax Increment) deposited previously and anticipated to be deposited in the Airport Economic Development Area Taxable Public Improvement Project Principal and Interest Account (the "Principal and Interest Account"), to pay all Lease Rental due in the 12-month period beginning on July 1 of the following calendar yeaz (referred to herein as the "Lease Rental Requirement"). This pledge provides assurance that, at budget time, there must be sufficient funds on hand, or anticipated to be available, to meet the Lease Rental Requirement or the Commission must levy the special benefits tax in accordance with IC 36-7-14-27. (Refer to the "Pledge Resolution" in Appendix F of this Official Statement.) The Commission intends to reduce tax levies to the extent that Tax Increment is anticipated to be available in the Principal and Interest Account. Tax Increment consists of all real property tax proceeds attributable to the assessed valuation within the EDA as of the assessment date in excess of the base assessed value (as defined in IC 36-7-14-39 (a)), reduced by an additional credit (referred to throughout this Official Statement as the "Tax Increment".) The tax incremental assessed value is determined by subtracting the base assessed value from the current assessed value as of the assessment date. The incremental assessed value is then multiplied by the current property tax rate to determine the Tax Increment. IC 36-7-14-39.5 entitles taxpayers within an allocation area to a credit (the "Additional Credit")payable from Tax Increment equal to the State Property Tax Replacement Credit (the "PTRC"). -5-