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CITY OF RAMSEY <br />Computation of Legal Debt Margin <br />December 31, 2002 <br />Minnesota state law defines a City's legal debt margin as 2% of its estimated actual property valuation, less all <br />bonds repayable solely from tax levies, plus all sinking funds on hand to retire said debt. Based on this formula, the <br />City's legal debt margin is as follows: <br />Estimated actual property value $ 1,121,720,400 <br />Debt limit (2% of estimated actual property value) $ 22,434,408 <br />Debt subject to limit <br />Lease revenue bonds $ 1,570,000 <br />Capital equipment certificates 429,000 <br />Less amounts available in <br />Respective Debt Service Funds (406,787) <br />Table 8 <br />Net debt applicable to limit 1,592,213 <br />Legal debt margin $ 20,842,195 <br />Note: The lease revenue bonds have been included despite being EDA debt because the City has pledged rental <br />payments in amounts equal to the debt service requirements and plans to annually appropriate City funds <br />available for this purpose. <br />-122- <br />