Agenda - Council - 05/26/2015 - Laserfiche WebLink

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Executive Summary of Proposed Debt Proposed Issue: Purposes: $1,235,000 General Obligation Street Reconstruction Bonds, Series 2015B The proposed issue includes financing for the 2015 street reconstruction and overaly projects. Debt service will be paid from ad valorem property taxes and special assessments. It is the intent of the City to levy special assessments in the amount of approximately $78,000 and $128,120 to benefiting property owners for the street reconstruction and overaly projects respectfully. These assessments will be levied in 2015 for collection in years 2016 through 2025 at a rate of 2% over the True Interest Cost of the proposed Bonds. Annual assessments are paid on an equal principal basis. The City anticipates receiving no prepayments on the special assessments from the projects this year. Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapter: • 475.58 3b The Bonds will be general obligations of the City for which its full faith, credit and taxing powers are pledged. The Bonds count against the City's General Obligation Debt Capacity Limit of 3% of estimated market value (EMV). In the City the pay 2014 EMV is $1,795,975,400. Therefore, the total amount of outstanding debt cannot exceed $53,879,262. As of February 10, 2015 the City had $20,050,000 subject to the legal debt limit Term/Call Feature: Bank Qualification: Rating: Presale Report — 2015B Bonds City of Ramsey, Minnesota The Bonds are being issued for a 10 year term. Principal on the Bonds will be due on December 1 in the years 2016 through 2025. Interest is payable every six months beginning December 1, 2015. The Bonds maturing on and after February 1, 2024 will be subject to prepayment at the discretion of the City on February 1, 2023 or any date thereafter. Because the City is issuing less than $10,000,000 in the calendar year, the City will be able to designate the Bonds as "bank qualified" obligations. Bank qualified status broadens the market for the Bonds, which can result in lower interest rates. The City's most recent bond issues were rated "AA+" by Standard & Poor's. The City will request a new rating for the Bonds. If the winning bidder on the Bonds elects to purchase bond insurance, the rating for the issue may be higher than the City's bond rating in the event that the bond rating of the insurer is higher than that of the City. March 10, 2015 Page 1