08/16/82 - Laserfiche WebLink

Home

I I I I I i I I I I I i I I I I I I I IV. Ramsq3~isinow on the verge of being served by metropolitan sewer service. At th~sa~e time that it Ks constructing the local sewer system, the City will ~so fConstruct a water suppy system. The schedule for projected bonde~i!de~t due to sewer, water and storm sewer construction is contained in Figure iTa. B. BorroW%rig ~Capacity To date, t~e City does not have any bonded debt that is subject to the ebt limit;, since all of the revenue needed to make the bond payments is derived frbm special assessments. Therefore, the City has unused borrow- ing caPacf~y equal to its debt limit of 6 2/3% Of its assessed valuation. Projec~ion~ of the City's assessed valuation, debt limit and borrowing capacity a~e contained in Figure 8. If the City adopts a bond issue in the fU~ureI for a non-revenue producing purpose, such as park acquisition and d~lopment, such a bond would be subject to the debt limit. Property ta×es~aiS~d to make such bond payments would be exempt from levy limit ~der CUrr~nt laws, however. Mill RatelP~oj~ctions Figure 8 alBo~ .~ ~hows a projection of the mill rate under the high, medium and low populRt~oniprojections. These are presented for discussion only, since there are imbnyiassumptions and potential variables that would affect them. Generally,i ~helmill rate would decrease substantially as Ramsey becomes subject to levy li~,ts~in 1982. After that it would remain relatively constant. This projectio~ ~s ~or limited levies only, so if the City has significant amounts of exempt o~ st>ecial levies in the future (e.g. for bond payments, welfare purposes, m~nd~itory programs), the mill rate will be greater. Another variab]ie that the assessed value projections do not take into consid- eration isI ~he industrial growth that the City is proposing in its comprehensive plan. Th~ ~xp~!nditure projections do not take into consideration the additional cost of Ci~ s~rvices to serve this accelerated industrial grow-th either. Current l~w~al~ows special levies and levy limit adjustments to compensate somewhat f~ t~e increased costs. The City should carefully consider whether the increas~ i~ assessed value will offset the increase in the cost of services or whether ~he~e will be an effect on the mill rate. The City should also remember that ~nder fiscal disparities law, forty percent (40%) of the increase in commerc~al/~ndustr~al assessed value will have to be shared with the rest of the region.' Summary of~ ~in~ncial Analysis As a result ~iof ~he preceding analysis, there are several issues and important consideratigns ~or the City of Ramsey in the 'development of its Capital Improve- ment Program. The City Will have little or no surplus revenue to finance capital ~mpro~eme~ts on a pay-as-you-go basis. Indeed, with the imposition · of lev~ l~mits, the City is likely to encounter problems in financing opera~ing~e×penditures if it wishes to maintain current levels of servid~.