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City of Ramsey, Minnesota <br />December 2, 1998 <br /> <br />11. Attachments <br /> <br />national repositories. Springsted can <br />provide continuing disclosure services for <br />the City under separate contract. We have <br />forwarded to City staff a summary of the <br />SEC's continuing disclosure requirements, <br />including the terms by which Springsted <br />could provide this service, if the City so <br />desires. <br /> <br />Debt Service Schedule <br />Terms of Proposal <br /> <br />DISCUSSION <br /> <br />Proceeds of this issue, together with proceeds of the $3,000,000 Housing Development <br />Revenue Bonds being issued simultaneously by the Anoka County HRA, and investment <br />earnings of approximately $58,000, will be used to finance the senior rental housing facility <br />referenced on page 1 of these recommendations. The total cost of the Project, including <br />bonding costs and capitalized interest for both bond issues, is expected to be approximately <br />$4,253,034. The Project, which is expected to be completed by the fall of 1999, will be owned <br />by the HRA. While net revenues of the Project, including tenant rental income, are expected to <br />cover the debt service on this issue as well as the HRA issue, the City also pledges its general <br />ad valorem taxing authority to payment of both issues. The two issues have been structured <br />with the principal for the City's $1,195,000 issue paid off first, before principal begins to be <br />repaid on the HRA issue. <br /> <br />While the Project is under construction, capitalized interest included in the issue will be used to <br />cover the interest payments due through January 1, 2000. Thereafter, project revenues <br />received monthly will be used to cover the semi-annual debt service payments. <br /> <br />The debt service schedule for this issue is shown on page 4. Columns 1 through 6 show the. <br />years and amounts of principal and estimated interest due on the bonds. Column 7 shows the <br />capitalized interest included in the issue to make the July 1, 1999 and January 1, 2000 interest <br />payments. Column 8 shows the net amount required to pay 100% of the debt service. To the <br />extent there is an insufficiency in Project net revenues to cover the debt service, the City has <br />pledged tax increment income from its Tax Increment Financing Districts Nos. 1, 2, and 4 and <br />its general ad valorem taxing ability. <br /> <br />Respectfully submitted, <br /> <br />SPRINGSTED Incorporated <br /> <br />CBC <br />Provided to Staff: <br /> a) Summary of Arbitrage Rules <br /> b) Summary of Continuing Disclosure Requirements <br /> c) Rebate and Continuing Disclosure Contracts <br /> <br />Page 3 ¢5 <br /> <br /> <br />