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V. FINANCING THE STREET RECONSTRUCTION PLAN <br />The maximum amount of requested expenditures under the Street <br />Reconstruction Plan is $3,000,000. If these expenditures are to be funded, <br />that amount of money is anticipated to be generated through the tax levy and <br />the sale of $3,000,000 in bonds over the five-year period. <br />In the financing of the Street Reconstruction Plan, one statutory limitation <br />applies. Under Chapter 475, with few exceptions, cities cannot incur debt in <br />excess of 3% of the assessor's estimated market value for the city. In the City <br />the EMV is $871,619,300. Therefore, the total amount of outstanding debt <br />cannot exceed $26,148,579. As of April 22, 2015 the City had $2,465,000 <br />subject to the legal debt limit. <br />Under the Street Reconstruction Plan, the City will secure up to $3,000,000 in <br />general obligation bonds in the year 2015 to temporarily finance construction <br />of the Centerville Road Reconstruction Project. The City expects Ramsey <br />County to reimburse the City for the costs of the project. The City will be <br />responsible for issuance and interest costs associated with this debt. The <br />general obligation bond issue will be repaid over a 2 -year period. The par <br />amount of the issue is based on the amounts listed in Appendix A plus <br />estimated issuance costs. The proposed general obligation street <br />reconstruction bonds (including issuance costs) are shown in Appendix B. <br />Continuation of the Street Reconstruction Plan <br />This Street Reconstruction Plan should be reviewed annually by the City <br />Council using the process outlined in this Plan. It should review proposed <br />expenditures, make priority decisions, and seek funding for those expenditures <br />it deems necessary for the City. If deemed appropriate, the Council should <br />prepare an update to this Plan. <br />Ehlers & Associates, Inc. 9 Page 6 <br />