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EHLERS LEADERS IN PUBLIC FINANCE ANOKA COUNTY HOUSING AND REDEVELOPMENT AUTHORITY Proposed Refunding of Savannah Oaks Senior Housing Bonds (City of Ramsey) Objective: Structure the refunding bonds to eliminate as much of the projected annual operating deficit as possible through the remaining life of the bonds. OPTION 1 OPTION 2 OPTION 3 No Refunding Refunding with No Equity Refunding with Maximum Contribution Available Equity Contribution Par Amount of N/A $3,735,000 $3,410,000 Refunding Bonds Est True Interest Rate N/A 4.28% 4.28% Savings (In Today's N/A $108,198 $112,064 Dollars) Savings as % of N/A 3.05% 3.16% Refunded Debt Service Equity Contribution N/A $0 $320,000 Projected Annual Min: ($55,000) in 2012 Min: ($46,000) in 2008 Min: ($16,000) in 2008 SurpJus/(Deficit) Max: ($104,622) in 2027 Max: ($100,000) in 2027 Max: ($79,000) in 2027 (After Debt Service) 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. S. Both the County bonds (issued in 1998) and the City bonds (issued in 1999) are refunded with the County's general obligation pledge. - 3 - Ehlers & Associates Inc. 3060 Centre Pointe Drive Roseville, MN 55113-1105 Phone: (651) 697-8546 Fax: (651) 697-8555 jcook@ehlers-inc.com