Agenda - Council - 10/27/2020 - Laserfiche WebLink

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Options for Shared Facilities with Other Cities or Local Government Sharing a Public Works Facility with another community is not an option since they would not have adequate facility space to accommodate the City's fleet of vehicles or staff. V. FINANCING The total amount of requested expenditures under this CIP is up to $20,000,000. If these expenditures are to be funded, that amount of money is anticipated to be generated through a combination of capital funds and the sale of general obligation capital improvement plan bonds within the identified five-year period. The anticipated bond sizing is based upon funding the estimated construction and soft costs identified for the project, plus estimated issuance costs and contingency. Principal and interest on the CIP Bonds will be paid through a tax levy and current estimates of size and repayment of the CIP Bonds under consideration is shown in Appendix B. In financing the CIP, two significant statutory limitations apply: 1. Under Chapter 475, with few exceptions, cities cannot incur debt in excess of 3% of the assessor's estimated market value (EMV) for the city. As noted in the table below, the City's debt subject to this requirement, including the proposed CIP Bonds, is within the required threshold: Assessor's Estimated Market Value Multiply by 3% Statutory Debt Limit Less: Debt Paid Solely from Taxes Less: Proposed Bond Issue(s) Unused Debt Limit 1,650 987,200 0.03 49, 529,616 (16,200,000) (9,935,000) 23, 394,616 2. A separate limitation under the CIP Act is that, without referendum, the total amount of principal and interest in any single year payable on all CIP Bonds issued by the City cannot exceed 0.16% of the total estimated market value in the municipality. In the City, that maximum annual debt service amount is $2,641,580 for the 2019/20 tax year ($1,650,987,200 x City of Ramsey, MN Five -Year Capital Improvement Plan for Bond Issuance 7