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<br />'m< <br />TR~ST <br />PU'BLlC <br />LAND <br />:41!i,.., RAMSEY CITY, MINNESOTA <br />11""'='" <br /> <br />Feasibility Study <br /> <br />Legal Debt Margin Calculation <br /> <br />Market Value <br />Debt limit (2% of market value) <br /> <br />Debt applicable to limit: <br />Total bonded debt $32,252,000 <br /> <br />$1,921,741,700 <br />$38,434,834 <br /> <br />Less: <br />Obligations issued with special assessments <br />Obligations issued with tax increments <br />Amounts available in respective Debt service funds <br />Total deductions <br />Total net debt applicable to limit <br />Lel!al debt marl!in <br /> <br />-4335000 <br />-6170000 <br />-2174298 <br />(12,679,298) <br /> <br />19,572,702 <br />$18,862,132 <br /> <br />*Source: 2006 Ramsey Comprehensive Annual Financial Report3! <br /> <br />Debt Authority Under CIP Legislation <br />Taxable market value of property 2007 <br />Multiplied by: <br /> <br />$2,165,311,900 <br />.0016 <br />$3,400,000 <br /> <br />Considerations for Referendum and ClP Bonds <br /> <br />Referendum (voted) debt is payable from taxes levied on the referendum market value of all <br />taxable property in the jurisdiction.32 Capital improvement plan (CIP) bond issues use the <br />net tax capacity of property. The different tax bases used can result in different figures for <br />cost per average homeowner.33 In other words, when the city issues referendum debt <br />homeowners do not benefit from the lower assessment rates afforded to residential property <br />in the way that they do for general property tax levies and CIP bond levies. In addition, <br />agricultural property and seasonal properties are exempted from referendum bond levies. As <br />such, homeowners bear a greater share of the tax burden for referendum bonds. <br /> <br />Referendum Bonds <br />Advantages and Disadvantages <br /> <br />-Debt limit is somewhat less restrictive than for CIP bonds. <br />-Public vote is required. <br /> <br />-Homeowners bear a greater burden for repayment. <br /> <br />-Agricultural property is exempt from taxes for repayment. <br /> <br />31 More updated figures to calculate debt margin were not available at the time this report was written. We remain hopeful that this can be <br />provided in the near future. <br />321bis value is based on the market value of property, rather than taxable value. General property taxes are paid upon the taxable value of <br />property, which are in most cases significantly less than market value and vary depending upon land use type. <br />33 Communication with The League of Minnesota Cities. <br /> <br />18 <br />