Agenda - Council - 11/08/1989 - Special

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City of Ramsey, Minnesota November 3, 1989 Appendix Ill is the projected repayment schedule for the bonds. The principal repayment in Column 3 is designed to reflect as closely as practical the principal repayment on the special assessments, interest rates shown in Column 4 reflect current interest rates based upon market conditions the week of October 23. The capitalized interest discussed previously is shown in Column 7. Minnesota Statutes require that the City provide projected income not less than 105% of the actual debt service requirement. This is designed to protect the City and the bondholders in the event projected revenues are not received as expected. That 105% is shown in Column 9. The projected assessment income as developed in Appendix II is shown in Column 10. Column11 is the principal and interest income expected to be received from the Mississippi River Storm Sewer District special levy. There is a small net requirement for the first eight years of the issue primarily due to the 5% ovedevy. This net requirement will be certified as a tax levy subsequent to the sale of the bonds. To the extent a surplus develops in the debt service account, primarily due to the accumulation of the 5% overlevy, the net requirement may be reduced and/or eliminated on an annualized basis prior to certification of general taxes in mid-October of each year. We expect that the projected $1,885 net requirement for levy year 1989 (Column 1 3) can be supported by accrued interest the City will receive on the bond proceeds from the dated date of the bonds, December 1, 1989, to the settlement date on the bonds. $235,000 General Obligation Tax Increment Bonds, Series 1989B The City has four tax increment projects underway which serve both public and private purposes. Those projects that serve private purpose must be separated from those that serve public purpose in order to permit the City to finance its public purpose cost on a tax- exempt basis. For this reason there are two tax increment bond issues to be sold, one tax- exempt and one taxable. The tax-exempt projects include sewer and water improvements in the Phase IV industrial park and improvements to the Rivers Bend Park. Those costs are shown as follows: Construction Engineering Staking and Inspection Administration* Costs of Issuance and Miscellaneous Subtotal Bond Discount Total Bond Issue Phase IV Phase IV Rivers Industrial Industrial Bend (Sewer) (Water) Park Total $29,381 $41,420 $113,376 $184,177 2,791 3,935 16,719 23,445 2,793 3,937 5,124 11,854 1,680 1,500 5,669 8,849 3,620 $36,645 $50,792 $140,888 $231,945 - · 3,055 $235,000 Includes some costs of issuance. Since there are no development agreements regarding these projects and they are essentially public purpose costs, the bonds can be sold as tax-exempt bonds. This issue's repayment schedule is shown in Appendix IV. As will be demonstrated later, these bonds will be paid from available revenues in Development District No. 1 and no tax levy for these bonds will be required. Page 2