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<br />Case # 2 <br /> <br />MUNICIP AL CENTER DEBT RESTRUCTURE FOR PERIODS 2009..2012 <br />BY: Diana Lund, Finance Officer <br /> <br />Background: <br /> <br />At the meeting of May 24, 2005 the Ramsey Economic Development Authority (EDA) <br />authorized the issuance of $19,200,000 Public Project Lease Revenue Bonds to be used <br />for the construction of the Ramsey Municipal Center. <br /> <br />The structuring of this debt was to coincide with the development of the City, in that the <br />City's tax capacity rate was to remain constant or even lower. Based on forecasted <br />growth, the City had increased the debt service payment on the Municipal Center to <br />double for period beginning 2009. With the downturn in the building economy, the tax <br />value is not growing at the rate that the City had forecasted. Thus, there is not the market <br />value tax base to offset this additional debt and keep the tax rate constant. <br /> <br />During 2008 Budget discussions with City Council the Municipal Center debt issue was <br />addressed. The City's financial consultant, Paul Donna, was present at a worksession on <br />July 31, 2007, to discuss possible Municipal Center debt restructuring to keep the City's <br />tax rate constant for the next few years (2009-2012). The Council was in agreement that <br />this was a viable option. <br /> <br />Mr. Donna, of Northland Securities, will be present at the EDA meeting of September 6, <br />2007 to discuss the restructuring of the Municipal Center Debt. <br /> <br />Funding Source: <br /> <br />None Required. Bonds are paid through debt levy. <br /> <br />Staff Recommendation: <br /> <br />Consider Resolution authorizing Northland Securities to proceed with Municipal Center <br />debt restructuring. <br /> <br />EDA Action: <br /> <br />Discussion of Municipal Center debt restructuring and consider adopting Resolution #07- <br />09-XXX authorizing Northland Securities to proceed with debt restructure. <br /> <br />20 <br />