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EHLERS' AND AS$OC] <br />FIN ANCIAI <br />FIHST NPTIONAL-800 LINE CONCOUBBE 50) MARpUETTE AVE. MINNEAGOLIB,MINNEBOTA 55402 33B•6281 <br />1 . _ <br />V <br />July 7, 1980 <br />Mr. Bruce Anderson> Acting City Manager <br />Mounds View City Hall <br />2401 Highwdy 10 <br />St. Paul, MN 55112 <br />Re: Financing Park and Recreationai Facilities <br />Dear Mr. Anderson: <br />R; ; ", <br />C'5, <br />r. 8' _ 4.'l: <br />Attached are computer exhibits that reflect the tax impact of bond issues <br />for homeowners in the City. Bond issue amounts ranging from E500,000 to <br />2.,500,000 were used. These are represented by exhfbits 1.00 through 5.00 <br />respectively. <br />The exhibits 1.10, 2.10, 3.30> 4 10, and 5.10 refiect the estimated tax <br />increase for the respective bond issues for homeowners with market values <br />rangTng frrom $30,000 to $100,00Q having income from $7,500 to 537,500 <br />aed based on the average mi11 rate through 1497. <br />The exhibits 1.20, 2.20, 3.20, 4.20 and 5.20 provided tbe tax impact for <br />senior citizens and the d4sabled. . <br />The mitl rate used of 99.00 Ss based on taxes paid thfs year (1980) and <br />the estimated increase as indicated on each exhibit. <br />As of this wrfting the Dow Jone: Index is 7.88% for 20-year bonds. We <br />used an estTmated $ percent ra'. in the ca7uctations to determine interest <br />costs. The valuation was shown to increase 3 million per year or about <br />7.5 percent of the current value of E39,484,OQ0. <br />The bond market has been volatile but bonds are being marketed. Ne are <br />flnding that bonds maturing after 15 years are difflcult to sell and in fsct <br />some underwrlters have 1nGicated they mlght'not bid on ]onger bonds, even <br />with the Mgher lnterest limits of 12 percent aiiowed. <br />The bonE market w117 H kety remain unstable as long as Washingtnn keeps <br />changing tbe"rutes--and the budget deficit looms larger. <br />I'71 be iooking forward to our July 10 meeting. <br />Slncerely, <br />EHLERS AND ASSOC7ATE5, INC. <br />N % <br />Phttlfp E. Chenoweth <br />PEC:Ieg <br />y.A'.. . ... ...... ..