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City of Mounds View Staff Report <br />August 29, 2018 <br />Page 2 <br />Street Improvement Assumptions: <br />Street Project every other year <br />Franchise fee percentage 2.0% <br />Estimated average collection 175,000 <br />(1998, 1999 & 2000 average, with 2001 <br />using revised estimate of $187,000) <br />Special Assessments: <br />Percentage assessed 22.0% <br />Amount 220,000 <br />Actual rate =25%, however after reducing by 3% for <br /> City and/or other non-assessable, net = 22%. <br />Average interest rate charged 6.5% <br />Term, in years 10 <br />Average collection 30,603 <br />Collection used 30,500 <br />Charged 1st year, collection starts 2nd year <br />Interest earnings 5.5% <br />Calculated on 100% of prior year balance plus <br />1/2 of current year change. <br />Bond Issue: <br />Issue amount 1,000,000 <br />Issuance costs, <br /> inclunding discount 50,000 <br />Net Available 950,000 <br />Average rate 5.0% <br />Term, in years 10 <br />Average payment 129,505 <br />Payment used 130,000 <br />Issued 1st year, payment starts in 2nd year <br />Options for City portion of cost: <br />If collections and bond payments are constant: <br />*$1,900,000 would be needed today to meet the City's <br />cost for the next 20 years. <br />*Property tax increase of $163,500 to meet the City's <br />cost for the next 20 years. <br />*Component of above or other options. <br />As size, timing of projects change, assessment policies, <br />bond structure, prepayments, interest rates, etc. <br />change, City's costs will also change. <br />