Agenda - Council - 09/26/2023 - Laserfiche WebLink

Home

Proposed Issue: $8,640,000 General Obligation Bonds, Series 2023A Purposes: The proposed issue includes financing for the following purposes: • COR TIF District Road Improvements - $7,155,000. This portion of the Bonds is being issued for a 15-year period. Debt service will be paid from tax increment generated from parcels within the District. These parcels include those that are developed and not currently pledged to any current PAYGO Note(s). Increment from parcels pledged to PAYGO Notes will be available for payment on bonds when the PAYGO Notes are paid in full. There are currently two PAYGO Notes within the COR TIF District (Affinity Apts. and COR Apts.) which are expected to be paid in full on February 1, 2024, and August 1, 2028 respectively. The current annual TIF estimate for parcels not pledged to the PAYGO Notes is approximately $950,000 and annual payments on the Bonds are approximately $645,000. This means there will be approximately $305,000 in annual TIF not pledged to any obligation(s), which provides debt service coverage at approximately 150%. • Equipment Certificate - $1,485,000. This portion of the Bonds is being issued for a 10-year period. Debt service will be paid from ad valorem property taxes Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapters: • 410.32 - Equipment Certificate • 412.301 - Equipment Certificate • 469 - TIF • 475 - General Bonding Authority TIF Portion of the Bonds: Because the City paying for at least 20% of the project costs with TIF from District No. 14, the Bonds can be a general obligation without a referendum and will not count against the City's debt limit. Equipment Certificate Portion of the Bonds. If the amount of equipment certificates issued is more than .25% of the estimated market value (EMV) of taxable property in the City, a public hearing must be held, and the issue is subject to reverse referendum. The City's EMV for pay 2023 is $4,124,767,000. The amount of the outstanding equipment certificates, along with the proposed 2023A equipment portion of the Bonds, is approximately $1,745,000 which is below the statutory threshold of $10,311,918. Therefore, the Bonds may be issued without public notice and voter approval. Presale Report September 26, 2023 City of Ramsey, Minnesota Page 1