Agenda - Council - 03/25/2008 - Laserfiche WebLink

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Objective: Structure the refunding bonds to eliminate as much of the projected annual operating deficit as possible through the remaining life of the bonds Assumptions: 1. 2008 represents base year for operations. 2. Operating revenues increase at 3% annually and operating expenses increase 7% in 2009, 6% in 2010 and 5% annually thereafter. 3. The HRA levy within the City is not included for purposes of calculating debt service coverage here, although it would be pledged to the refunding bonds and would be sufficient to demonstrate the 110% coverage required under state statute. 4. The accumulated HRA levy fund balance as of December 31, 2007 is $729,093, of which the City has reserved $400,000 for another project. It is expected that funds from this account would be used to meet the indicated equity contribution. 5 Both the County bonds (issued in 1998) and the City bonds (issued in 1999) are refunded with the County's general obligation pledge. Ehlers & Associates Inc. 3060 Centre Pointe Drive Roseville, MN 55113 -1105 EHLERS LEADERS IN PUBLIC FINANCE ANOKA COUNTY HOUSING AND REDEVELOPMENT AUTHORITY Proposed Refunding of Savannah Oaks Senior Housing Bonds (City of Ramsey) - 3 - Phone: (651) 697 -8546 Fax: (651) 697 - 8555 jcook @ehlers - inc.com -91- OPTION 1 OPTION 2 OPTION 3 No Refunding Refunding with No Equity Contribution Refunding with Maximum Available Equity Contribution ParAmount of Refunding N/A $3,735,000 $3,410,000 Est. True Interest Rate N/A 4.28% 4.28% Savings (In Today's Dollars) N/A $108,198 $112,064 Savings as % of Refunded Debt Service N/A 3.05% 3.16% Equity Contribution N/A $0 $320,000 Projected Annual Surplus /(Deficit) (After Debt Service) Min: ($55,000) in 2012 Max: ($104,622) in 2027 Min: ($46,000) in 2008 Max: ($100,000) in 2027 Min: ($16,000) in 2008 Max: ($79,000) in 2027 Objective: Structure the refunding bonds to eliminate as much of the projected annual operating deficit as possible through the remaining life of the bonds Assumptions: 1. 2008 represents base year for operations. 2. Operating revenues increase at 3% annually and operating expenses increase 7% in 2009, 6% in 2010 and 5% annually thereafter. 3. The HRA levy within the City is not included for purposes of calculating debt service coverage here, although it would be pledged to the refunding bonds and would be sufficient to demonstrate the 110% coverage required under state statute. 4. The accumulated HRA levy fund balance as of December 31, 2007 is $729,093, of which the City has reserved $400,000 for another project. It is expected that funds from this account would be used to meet the indicated equity contribution. 5 Both the County bonds (issued in 1998) and the City bonds (issued in 1999) are refunded with the County's general obligation pledge. Ehlers & Associates Inc. 3060 Centre Pointe Drive Roseville, MN 55113 -1105 EHLERS LEADERS IN PUBLIC FINANCE ANOKA COUNTY HOUSING AND REDEVELOPMENT AUTHORITY Proposed Refunding of Savannah Oaks Senior Housing Bonds (City of Ramsey) - 3 - Phone: (651) 697 -8546 Fax: (651) 697 - 8555 jcook @ehlers - inc.com -91-