DM 1/15/03 Letter to Richter/UMB Bank

 

8/21/05 MOPR Notes:  On City letterhead, 2P, from 1/21/03 BOA pkt. 

 


 

1/15/03

 

Philip B Richter

UMB Bank, n.a.  

1010 Grand Boulevard

Kansas City, MO  64105

 

RE:  $1,785,000 City of Valley Park, Missouri Tax Increment Refunding Revenue Bonds,

         Series 2003 (Valley Park Levee & Infrastructure Project) (the "Series 2003 Bonds")

 

Dear Mr Richter:

 

The City of Valley Park (the "City") has engaged UMB Bank to act as underwriter for the sale of the above-referenced Series 2003 Bonds.  The City has previously issued certain tax incremt bonds on parity with the Series 2003 Bonds.  Unfortunately, the City has from time to time failed to comply with its undertakings with respect to the continuing disclosure of certain info about the City & the tax incremt dist, as required in certain Continuing Disclosure Agreemts executed by the City in connection with each such bond issue.  At the time of the offering of the Series 2003 Bonds, the City was in compliance with such continuing disclosure undertakings.

 

This letter is being provided to you to provide add'l assurance that the City has implemented internal procedures to promote timely compliance with the Continuing Disclosure Agreemts being executed in connection with the issuance of the Series 2003 Bonds. 

 

 As uno, the City is required to provide three reports, the first of which is the annual financial audit.  The City will enter into a written agreemt with its auditors providing that the annual financial audit will be completed no later than 150 days after the end of the City's FY.  However, it is expressly understood that, in the event that such annual audit is not timely rcv'd by the City, the City will nonetheless file a report with the Nationally Recognized Municipal Securities Info Repositories ("NRMSIRs") confirming that the City has not rcv'd the annual audit.  Upon receipt from the auditors, the City will provide such annual audit to the NRMSIRs.  The City Clerk is assigned the responsibility to provide the audit & the report to UMB Bank or to the NRMSIRs directly.

 

The City is also responsible for providing for each FY the relevant info contained in a schedule entitled "The Redev Area - Taxpayers in the Redev Area".  This schedule for the FY ending 6/30/02, appeared in the Ofc'l Statemt for the Series 2003 Bonds.  The City Clerk will upon receipt of the annual assessed valuations of the property located within the redev area compile the info necessary to update this schedule.  Since the assessed valuations are normally determined by July of each yr, it should be possible for the City Clerk to complete this schedule by 9/1 of each yr. 

 

Finally, the City is required to provide info shown in the schedule entitled "Historic Collection of Pilots, Economic Activity Tax Revenues & Municipal Revenues."  This schedule for the yrs 1989 thru 2002 appeared in the Ofc'l Statemt for the Series 2003 Bonds.  Pilots are rcv'd contemporaneously with real property taxes, primarily in Jan, Feb & Mar of each yr.  Ecomonic Activity Taxes are rcv'd monthly, while Municipal Revenues represent utility taxes rcv'd by the City & paid to the trustee annually.  The City Clerk will record & maintain the amts of each such revenue on a monthly basis.  Such amts should correspond to amts rcv'd by UMB Bank, as trustee. 

 

We have also changed our agreemt with UMB Bank, as trustee.  UMB Bank is serving as our agent to file our reports with the NRMSIRs.  In the past, UMB has provided us with a telephone call 15 days prior to the due date of our reporting if we have not timely filed.  We have changed this provision to require UMB to notify the City in writing 30 days prior to such reporting due date if we have not timely filed.  The written notice will be mailed to the City Clerk, UMB Bank, as underwriter, the Mayor's Ofc & to our City Atty, Eric Martin.

 

We believe these changes in our procedures will result in the City's full compliance with the continuing disclosure undertakings.

 

Very truly yours,   City of VP, MO.  By:    ((signed Dan Michel))  , Mayor