Agenda - Council - 11/15/2022 - Special

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EXECUTIVE SUMMARY OF PROPOSED DEBT Proposed Issue: $12,075,000 General Obligation Street Reconstruction Bonds, Series 2022A Purposes: The proposed issue includes financing for the 2023 - 2025 street reconstruction projects in the City. Debt service will be paid from ad valorem property taxes. Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapter(s): • 475 • 475.58 3b The Bonds count against the Net Debt Limit of 3% of the estimated market value of taxable property in the City. The City's Pay 2022 EMV is $3,345,686,400. Therefore, the total amount of outstanding debt cannot exceed $100,370,592. As of October 1, 2022, the City has $23,195,000 subject to the legal debt limit. The City held the required public hearing on it 5-year street reconstruction plan on October 11, 2022. The Bonds will be general obligations of the City for which its full faith, credit and taxing powers are pledged. Term/Call Feature: The Bonds are being issued for a term of 15 years. Principal on the Bonds will be due on December 15 in the years 2023 through 2037. Interest is payable every six months beginning December 15, 2023. The Bonds will be subject to prepayment at the discretion of the City on December 15, 2032 or any date thereafter. Bank Qualification: Because the City is issuing, or expects to issue, more than $10,000,000 in tax-exempt obligations during the calendar year, the City will be not able to designate the Bonds as "bank qualified" obligations. Presale Report City of Ramsey, Minnesota October 11, 2022 Page 1