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• For purposes of the chart below, the City has assumed no growth in collections of the Bond Tax
<br /> and that collections of the Bond Tax will be in the annual amount of$1,690,991. THERE IS
<br /> NO GUARANTEE THAT THESE ESTIMATES WILL BE TRUE. See THE TAX, Future
<br /> Tax Receipts. Based on these assumptions, the Bonds would be paid in full by September 1,
<br /> 2035 from Surplus Bond Tax Receipts and moneys in the Debt Service Reserve, as follows:
<br /> Bonds Redeemed Total
<br /> Year Principal Due* Prior to Maturity* Principal Retired*
<br /> 2013 $ 640,000 $ 70,000 $ 710,000
<br /> 2014 730,000 75,000 805,000
<br /> 2015 745,000 80,000 825,000
<br /> 2016 760,000 80,000 840,000
<br /> 2017 775,000 85,000 860,000
<br /> 2018 790,000 90,000 880,000
<br /> 2019 815,000 90,000 905,000
<br /> 2020 840,000 95,000 935,000
<br /> 2021 865,000 95,000 960,000
<br /> 2022 890,000 105,000 995,000
<br /> 2023 920,000 105,000 1,025,000
<br /> 2024 945,000 110,000 1,055,000
<br /> 2025 980,000 110,000 1,090,000
<br /> 2026 1,010,000 120,000 1,130,000
<br /> 2027 1,050,000 125,000 1,175,000
<br /> 2028 1,095,000 130,000 1,225,000
<br /> 2029 1,140,000 130,000 1,270,000
<br /> 2030 1,185,000 140,000 1,325,000
<br /> 2031 1,230,000 145,000 1,375,000
<br /> • 2032 1,280,000 150,000 1,430,000
<br /> 2033 1,330,000 155,000 1,485,000
<br /> 2034 1,385,000 165,000 1,550,000
<br /> 2035 1,440,000 610,000 2,050,000
<br /> Totals: $22,840,000 $3,060,000 $25,900,000
<br /> LEGAL MATTERS
<br /> Legal Proceedings. There is no litigation pending seeking to restrain or enjoin the Taxes or the
<br /> issuance or delivery of the Bonds, or questioning or affecting the legality of the Taxes or Bonds
<br /> or the proceedings and authority under which the Bonds are to be issued, or questioning the right
<br /> of the City to adopt the Authorizing Ordinance or to issue the Bonds or the levy and pledge of
<br /> the Taxes by the City.
<br /> Legal Opinions. Legal matters incident to the authorization and issuance of the Bonds are
<br /> subject to the unqualified approving opinion of Friday, Eldredge & Clark, LLP, Little Rock,
<br /> Arkansas, Bond Counsel.
<br /> Tax Exemption. In the opinion of Friday, Eldredge& Clark, LLP, Bond Counsel, under existing
<br /> law the interest on the Bonds is exempt from all Arkansas state,county and municipal taxes.
<br /> Also, in the opinion of Bond Counsel, interest on the Bonds under existing law is excludable
<br /> from gross income for federal income tax purposes and is not an item of tax preference for
<br /> purposes of the federal alternative minimum tax imposed on individuals and corporations;
<br /> however, it should be noted that with respect to corporations (as defined for federal income tax
<br /> • 'Preliminary; subject to change.
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