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Debt limit (2% of estimated actual property value) <br />CITY OF RAMSEY <br />Computation of Legal Debt Margin <br />December 31, 2003 <br />Minnesota state law defines a city's legal debt margin as 2% of its estimated actual property valuation, less all bonds <br />repayable solely from tax levies, plus all sinking funds on hand to retire said debt. Based on this formula, the City's <br />Iegal debt margin is as follows: <br />Estimated actual property value $ 1,288,395,300 <br />Debt subject to limit <br />Lease revenue bonds $ 1,510,000 <br />Capital equipment certificates 983,000 <br />Less amounts available in <br />Respective Debt Service Funds (345,332) <br />Table 8 <br />-109- <br />Net debt applicable to limit 2,147,668 <br />Legal debt margin <br />$ 25,767,906 <br />$ 23,620,238 <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 />