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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, <br />the City's legal debt margin is as follows: <br />Estimated actual property value $ 893,838,700 <br />Debt limit (2% of estimated actual property value) $ 17,876,774 <br />Debt subject to limit <br />Lease revenue bonds <br />Capital equipment certificates <br />Less amounts available in <br />Respective Debt Service Funds <br />CITY OF RAMSEY <br />Computation of Legal Debt Margin <br />December 31, 2000 <br />Net debt applicable to limit 1,608,155 <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 />Legal debt margin $ 16,268,619 <br />-103- <br />1,665,000 <br />257,000 <br />(313,845) <br />Table 8 <br />