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c`, DDA Parkers Prairie 42 <br /> ' : 13979 County Highwayay 42 <br /> Parkers Prairie,MN 56361 <br /> ) David Drown Associates, Inc. (612)920-3320 ext.110 I fax(612)605-2375 <br /> Public Finance Advisors www.daviddrown.com <br /> December 20,2021 <br /> RECOMMENDATIONS <br /> Mr.Tyler Gardner,Mayor <br /> Mr. Rich Spiczka,City Administrator <br /> City of Pequot Lakes <br /> 4638 Main Street <br /> Pequot Lakes,MN 56472 <br /> RE:General Obligation Equipment Certificates,2022A <br /> Honorable Mayor Gardner,Members of the City Council,and Mr.Spiczka: <br /> It is my understanding the City of Pequot Lakes has purchased of a new plow truck for the City's Public <br /> Works/Maintenance Department,which will be delivered to the City at the end of January or early <br /> February 2022. The purpose of this letter is to provide information regarding financing recommendations <br /> for the purchase of the new plow truck. <br /> Overview of Project and Component Costs <br /> The major component costs and sources of funds are detailed below: <br /> ' Purchase Price Plow Truck; $ 170,859.00 1 <br /> Total Project Costs; I $ 170859.00 1 <br /> ! j <br /> Plus Issuance Costs(inlcuding discount);, j $ 5,050.00 <br /> Less-City Contribution; 1 $ (909.00) <br /> RECOMMENDED SIZE OF BOND ISSUE' $ 175,000.00 <br /> General Obligation Equipment Certificates <br /> Cities must cite the specific statutory authority they intend to use before issuing general obligation <br /> bonds. In this instance,we are advising the City to issue these bonds utilizing Minnesota Statutes, <br /> Section 412.301 authorizing the issuance of equipment certificates within existing debt limits for <br /> purchasing the new plow truck. Statutes limit the term of the borrowing for certificates to not more than <br /> 10 years. <br /> The statute also requires that if the amount of the equipment certificates to be issued exceeds 0.25%of <br /> the market value of taxable property in the city,the equipment certificates shall not be issued for at least <br /> ten days after publication in the official newspaper of the city of a council resolution determining to issue <br /> the equipment certificates;and,if before the end of that time,a petition asking for an election on the <br /> proposition signed by voters equal to ten percent of the number of voters at the last regular municipal <br /> election. The calculation is as follows: <br />