Agenda - Council - 07/28/1981 - Laserfiche WebLink

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-6- The future interest on the three issues is $68.9.million, an average rate of 5.553 percent. The combined annual debt service payments - for these issues are shown in Appendix Table 1. Figure 3 illustrates the annual debt service payments. From 1980 to 1986, the payments are relatively steady at approximately $9 million. From 1987 to 1990, a "balloon" increases the payments to a peak of about $12 million before the 1971 issue and the refunding issue are retired. Beyond 1991, the only payments remaining are on the 1972 issue. c. Assumed Debt The MSSB assumed ownership and control of the interceptors and treatment works of the Minneapolis -St. Paul Sanitary District, the North Suburban Sanitary Sewer District (NSSSD), and the Southwest Sanitary District (SSD). At the same time the Metropolitan Council assumed payment of the bonds of those organizations. These included all bonds of the NSSSD, which had been authorized to incur debt; certain bonds of Chanhassen, Deephaven, Eagle Creek Townhsip, Eden Prairie, Minnetonka and Prior Lake which had been sold for purposes of the SSD; and 17 bond issues of Minneapolis and St. Paul which had been incurred for purposes of financing improvements to_ the Minneapolis -St. Paul sanitary facilities. The combined annual debt service payments of this assumed debt.are as shown in Figure 4. The annual payments, shown in Appendix Table 2, start at approximately $4.0 million before dropping to $3.8 million in 1990, and decreasing after that to expiration in 1999. Some of these issues are callable and will be discussed later. Table 2 lists the bond issues which are included in the assumed debt. d. Local Government Debt Service When the ownership of local facilities was transferred to the MSSB, a legislated formula was used to determine the value of each interceptor or treatment works that would be credited to the city or township by the MSSB. Except for some of the older interceptors in Minneapolis and St. Paul, most cities and townships still had debt outstanding on these facilities. Two examples are shown in Appendices 3 and 4, and are discussed more fully on page 11 as a part of Current Value Credits.