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<br />Recommended Funding Sources
<br />27
<br />Year
<br />Maintenance
<br />Costs
<br />Reconstruction
<br />Costs
<br />Total Costs
<br />Property Tax
<br />Levy
<br />2005
<br />G.O. Improvement Bonds
<br />Total
<br />Revenues
<br />Storm Water
<br />Utility
<br />Principal
<br />Repaid From
<br />Special
<br />Assessments
<br />Principal
<br />Repaid From
<br />Property Tax
<br />Levy
<br />-
<br />236,538
<br />-
<br />236.538
<br />236,538
<br />-
<br />-
<br />24,300
<br />236,538
<br />2005
<br />347,500
<br />-
<br />347,500
<br />347,500
<br />-
<br />-
<br />516,750
<br />347,500
<br />2006
<br />365,500
<br />1,435,000
<br />1,800.500
<br />365.500
<br />344,400
<br />287,000
<br />803,600
<br />1,800,500
<br />2007
<br />385,000
<br />2,750,000
<br />3,135,000
<br />385,000
<br />660,000
<br />550,000
<br />1,540,000
<br />3,135,000
<br />2008
<br />402,500
<br />3,035,000
<br />3,437.500
<br />402.500
<br />728,400
<br />607,000
<br />1,699,600
<br />3,437,500
<br />2009
<br />422,500
<br />3,485,000
<br />3,907,500
<br />422,500
<br />836,400
<br />697,000
<br />1,951,600
<br />3,907,500
<br />2010
<br />445,000
<br />1,577,500
<br />2,022,500
<br />445,000
<br />378,600
<br />315,500
<br />883,400
<br />2,022,500
<br />2011
<br />467,500
<br />1,655,000
<br />2,122,500
<br />467,500
<br />397,200
<br />331,000
<br />926,800
<br />2,122,500
<br />2012
<br />490,000
<br />1,737,500
<br />2,227,500
<br />490,000
<br />417,000
<br />347,500
<br />973,000
<br />2,227,500
<br />2013
<br />515,000
<br />1,825,000
<br />2,340,000
<br />515,000
<br />438,000
<br />365,000
<br />1,022,000
<br />2,340,000
<br />Totals
<br />4,077,038
<br />17,500,000
<br />21.577,038
<br />4,077,038
<br />4.200,000
<br />3,500,000
<br />9,800,000
<br />21,577,038
<br />Springsted
<br />The impacts resulting from debt service on General Obligation Improvement
<br />Bonds issued to finance the reconstruction portion of the PMR each year begin
<br />in 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 the bond amount each year would include the
<br />principal amount of the special assessments and that 20% of the debt service
<br />costs each year would be repaid from special assessments. This results in
<br />$13,300,000 in bonds to be issued ($9,800,000 to be repaid from property taxes
<br />plus $3,500,000 to be repaid from special assessments). The projected bond
<br />amounts, annual debt service, annual special assessments, and net property tax
<br />levies through 2014 are shown in the table below. It is important to remember
<br />that the debt service payments, special assessments and tax levy will continue
<br />through 2029 when the bonds issued in 2014 are repaid.
<br />Year
<br />Total Bond
<br />Issue Amount
<br />Gross
<br />Average Annual
<br />Debt Service
<br />Less Special
<br />Assessments
<br />(20 %)
<br />Net Levy
<br />2005
<br />-
<br />-
<br />-
<br />-
<br />2006
<br />-
<br />-
<br />-
<br />-
<br />2007
<br />1,090,000
<br />103,000
<br />24,300
<br />78,700
<br />2008
<br />2,090,000
<br />299,750
<br />70,830
<br />228,920
<br />2009
<br />2,305,000
<br />516,750
<br />122,145
<br />394,605
<br />2010
<br />2,650,000
<br />766,750
<br />181,145
<br />585,605
<br />2011
<br />1,200,000
<br />880,750
<br />207,860
<br />672,890
<br />2012
<br />1,260,000
<br />999,500
<br />235,910
<br />763,590
<br />2013
<br />1,320,000
<br />1,123,900
<br />265,295
<br />858,605
<br />2014
<br />1,385,000
<br />1,254,420
<br />296,130
<br />958,290
<br />We developed a projection of the property tax levies and tax rates that result
<br />from the recommended funding sources through 2014. They show the
<br />sealcoating and overlay portion of the PMR on a pay -as- you -go basis and the
<br />impacts resulting from debt service on General Obligation Improvement Bonds
<br />issued to finance the reconstruction portion of the PMR each year. The tax rate
<br />is projected to increase each year as new debt is issued and is projected to range
<br />from 4.039% to 6.140% in 2014 depending on the growth in the City's tax base,
<br />These projected tax rate impacts are less than the projected tax rate impacts
<br />from either the G.O. Bonds (5.936% to 9.022 %) or the G.O. Improvement
<br />Bonds (5.116% to 7.777 %) because the revenues from the special assessments
<br />- 1 9 6 -
<br />City of Lino Lakes - Pavement Management Plan Financing Repc
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