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<br />TRUST
<br />'M
<br />PUBLIC
<br />LAND
<br />.. RAMSEY CITY, MINNESOTA
<br />
<br />Feasibility Study
<br />
<br />A referendum bond issue in Ramsey city of $4 million would add $320,970 million to the
<br />city's annual debt service and cost the average homeowner ($212,000 value home) $30 per
<br />year, assuming a 20-year bond at 5 percent interest. (See Table 2 below for bond scenarios)
<br />
<br />Capital Improvement Plan Bonds
<br />
<br />Advantages and Disadvantages
<br />
<br />-May be issued by city council (no public vote required); however, land conservation projects
<br />must be included in the ClP.
<br />
<br />-Annual debt service limit is more restrictive for ClP bonds than the total statutory debt
<br />limit.
<br />
<br />If a tax capacity-based levy were used to raise $5 million, the average homeowner would pay
<br />$32 a year, and the. debt service would be the same as a referendum bond issue. (See Table
<br />2.) At $4 million, the average homeowner would pay $26 a year.
<br />
<br />The chart below illustrates the debt service and tax increase for bond amounts that could
<br />potentially be issued.
<br />
<br />Table 2: Bond Financing Costs
<br />
<br />City of Ramsey Referendum Bond Financing Costs
<br />Assumes 20-year bond at 5.0% interest rate; Total Referendum Valuation = $2.27 billion*
<br /> Annual Prop Tax Cost/ Year/ Cost/ Ave./
<br />Bond Issue Debt Svce Increase $100KAV Homeowner*
<br />$1,000,000 $80,243 0.0035 $3.52 $7.47
<br />$2,000,000 $160,485 0.0070 $7.05 $14.94
<br />$3,000,000 $240,728 0.0106 $10.57 $22.41
<br />$4,000,000 $320,970 0.0141 $14.09 $29.88
<br />$5,000,000 $401,213 0.0176 $17.62 $37.35
<br />$6,000,000 $481,456 0.0211 $21.14 $44.82
<br />$7,000,000 $561,698 0.0247 $24.67 $52.29
<br />*Based on 2008 figures from the Anoka County Tax Adminirtration
<br />**Based on median home market value of $212,000. Source: Diana Lund (RamJey Finance Officer)
<br />City of Ramsey CIP Bond Financing Costs
<br />Assumes 20-year bond at 5.0% interest rate; Net Tax Capacity = $28.6 million. *
<br /> Annual Prop Tax Cost/ Year/ Cost/ Ave./
<br />Bond Issue Debt Svce Increase $100K A V Homeowner**
<br />$1,000,000 $80,243 0.3085 $3.09 $6.54
<br />$2,000,000 $160,485 0.6170 $6.17 $13.08
<br />$3,000,000 $240,728 0.9255 $9.26 $19.62
<br />$4,000,000 $320,970 1.2340 $12.34 $26.16
<br />$5,000,000 $401,213 1.5425 $15.43 $32.70
<br />$6,000,000 $481,456 1.8510 $18.51 $39.24
<br />$7,000,000 $561,698 2.1595 $21.60 $45.78
<br />* Based on 2008 figures from the Anoka Coun!y Tax Administration
<br />**BaJed on median home taxable fla/ue
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