|
3
<br />3
<br />3
<br />3
<br />1
<br />1
<br />3
<br />1
<br />3
<br />3
<br />3.
<br />3
<br />•
<br />3
<br />a
<br />3
<br />3
<br />3
<br />3
<br />3
<br />3
<br />3
<br />a
<br />3
<br />•
<br />3
<br />Available Funding Sources
<br />14
<br />Springsted
<br />improvements as part of a overall development project. Developers provide
<br />letters of credit as security to guarantee payment.
<br />We developed a projection of the property tax levy and tax rate needed through
<br />2014 to pay for the sealcoating and overlay portion of the PMR on a pay -as-
<br />you-go basis and to pay debt service on General Obligation Improvement Bonds
<br />issued to finance the reconstruction portion of the PMR each year beginning in
<br />2007 when the first reconstruction project is scheduled to occur. The bonds
<br />were assumed to have a term of 15 years and an average annual interest rate of
<br />4.675 %. We assumed that 20% of the debt service costs each year would be
<br />repaid from special assessments. We chose this amount because it is the
<br />minimum amount required by the statute and it provides the most conservative
<br />projection. The projected bond amounts, annual debt service, annual special
<br />assessments, and net tax levies are shown in the table below.
<br />Year
<br />Cost
<br />Total Bond
<br />Issue Amount
<br />Gross
<br />Average Annua
<br />Debt Service
<br />Less Special
<br />Assessments
<br />(20 %)
<br />Net Levy
<br />2005
<br />-
<br />-
<br />-
<br />-
<br />-
<br />2006
<br />-
<br />-
<br />-
<br />-
<br />-
<br />2007
<br />1,435,000
<br />1,435,000
<br />135,250
<br />27,050
<br />108,200
<br />2008
<br />2,750,000
<br />2,750,000
<br />394,500
<br />73,580
<br />320,920
<br />2009
<br />3,035,000
<br />3,035,000
<br />680,500
<br />124,895
<br />555,605
<br />2010
<br />3,485,000
<br />3,485,000
<br />1,009,000
<br />183,895
<br />825,105
<br />2011
<br />1,577,500
<br />1,580,000
<br />1,158,000
<br />210,610
<br />947,390
<br />2012
<br />1,655,000
<br />1,655,000
<br />1,314,000
<br />238,660
<br />1,075,340
<br />2013
<br />1,737,500
<br />1,740,000
<br />1,478,000
<br />268,045
<br />1,209,955
<br />2014
<br />1,825,000
<br />1,825,000
<br />1,650,000
<br />298,880
<br />1,351,120
<br />The tax rate for each year is again projected based on three growth scenarios for
<br />the City's property tax base to provide the City with a range of property tax
<br />rates within which the actual tax rates are likely to occur. The 2005 total levy
<br />amount and tax rate impact represents the City's property tax levy for street
<br />maintenance this year. The projected tax levy and tax rate for 2006 includes
<br />only the street maintenance items of seal coating and overlays from the PMR.
<br />The tax levies and tax rates for 2007 through 2014 include both annual
<br />maintenance for seal coating and overlays and debt service on the G.O.
<br />Improvement Bonds to be issued for the reconstruction projects each year. The
<br />tax rate is projected to increase each year as new debt is issued and is projected
<br />to range from 5.116% to 7.777% in 2014 depending on the growth in the City's
<br />tax base. This is somewhat less than the projected impacts from the G.O.
<br />Bonds (5.936% to 9.022 %) because special assessments reduce the property tax
<br />levy required. Because the bonds are projected to have a term of 15 years, the
<br />corresponding debt service payments would affect the City's tax rate through
<br />2029. Additional tax rate impacts after 2014 would depend on how the City
<br />decided to fund the PMR in subsequent years. The projected tax levies and tax
<br />rates are shown in the table below.
<br />-183-
<br />City of Lino Lakes - Pavement Management Plan Financing Rep
<br />
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