Minnesota school district credit enhancement program

Under the program, debt service will, if necessary, be paid by the state and repaid from subsequent state aid to the district in question or from a property tax levied by the district.

The credit enhancement program has never been called upon by any school district. The state's department of education coordinates with the state's department of management and budget to administer the program.

Fitch believes that the program mechanics allow for state funds to be made available to pay debt service on bonds covered under the program by the scheduled debt service payment date. View additional rating details. Additional information is available on www. The Rating Outlook is Stable. Cities are eligible to apply. The debt obligation must be a general obligation debt issued for the construction, improvement or rehabilitation of wastewater, drinking water, or stormwater facilities.

If a city or county is issuing bonds for a combination of eligible and ineligible purposes, bonds for the eligible purposes must be issued as a separate series. Effective May 1, , refunding bonds are no longer eligible. The city council or county board must adopt a resolution authorizing the county to enter into the Credit Enhancement Program Agreement and agreeing to be bound by the provisions of state law.

The application must include a completed Credit Enhancement Program application form, an opinion of bond counsel in the form required by the PFA, and a completed Credit Enhancement Program Agreement executed by the county and the paying agent for the bonds. Applicants should contact the PFA well in advance of the bond issuance date. Application Form. Program Agreement.

Form of Bond Counsel Opinion. Governmental Unit Default Form. Paying Agent Default Form. View a list of PFA program contacts. Credit Enhancement Program The Credit Enhancement Program helps cities and counties reduce the costs of borrowing to build certain public facilities.