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City of Little Canada
<br />January 10, 1990
<br />Page 2
<br />The 1989/90 total tax levy increased substantially as previously reported to the City
<br />Council. Major causes of this increase are summarized as follows:
<br />GENERAL REVENUE:
<br />• State Aid Transfer / "Shift" $255,959
<br />• Other (12,609)
<br />Total General Revenue Increase 243,350
<br />DEBT SERVICE TAX LEVIES:
<br />• Fire Station Financing 91,733
<br />• Other 3,700
<br />Total Debt Service Tax Levy Increase 95,433
<br />Total Increase $338,783
<br />The original Installment Purchase Contract for the Fire Station was estimated to be
<br />$1,080,000. The revised amount is $1,620,000 representing a $540,000 or 50% increase.
<br />Accordingly, debt service tax levies to retire this debt will be 50% higher. However, the
<br />City's existing debt service tax levies (for existing bonded debt) will end in 1999. Such
<br />levies total $575,500 for collection in 1999. Thereafter, the only remaining debt service tax
<br />levy will be for this Installment Purchase Contract.
<br />The original Installment Purchase Contract was expected to be fully retired in 2005. The
<br />revised Contract can be paid -off over a shorter period (by three years) by increasing the
<br />debt service payments (and tax levies) in the years 2000 through 2002. The attached
<br />schedule and graph of Bonded Debt Tax Levies reflect this shortened period.
<br />Debt Service Tax Levies to finance the Revised Installment Purchase Contract will range
<br />between $150,000 for 1990/91 and $187,500 for 1998 /99 representing a 50% increase
<br />from the original amounts (i.e. the proposed tax levies at a $1,080,000 contract amount).
<br />These amounts represent an approximate 30% increase to the City's existing debt service
<br />tax levies as follows:
<br />Debt Service Tax Levies
<br />Existing New Annual
<br />Year Debt Debt Total Change
<br />1988/89 $522,215 $522,215
<br />1989/90 525,915 $91,733 617,648 $95,433
<br />1990/91 534,525 150,000 684,525 66,877
<br />1991/92 548,385 157,500 705,885 21,360
<br />1992/93 553,075 157,500 710,575 4,690
<br />1993/94 583,185 165,000 748,185 37,610
<br />1994/95 567,210 165,000 732,210 (15,975)
<br />1995/96 580,820 172,500 753,320 21,110
<br />1996/97 547,990 172,500 720,490 (32,830)
<br />1997/98 494,000 180,000 674,000 (46,490)
<br />1998/99 575,500 187,500 763,000 89,000
<br />1999/00 -0- 400,000 400,000 (363,000)
<br />2000/01 -0- 415,000 415,000 15,000
<br />2001/02 -0- 415,000 415,000 -0-
<br />2002/03 -0- -0- (415,000)
<br />116e 1
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