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City of St. Anthony, Minnesota <br /> February 22, 2001 <br /> DISCUSSION <br /> Proceeds of the Bonds, together with funds in the amount of $939,700 to be provided by the <br /> Minnesota Department of Natural Resources, will be used to finance street, water, storm sewer <br /> and sanitary sewer improvement projects in various areas of the City. The sources and uses of <br /> funds for the Bonds are shown on Page 5. <br /> The Bonds will be repaid from special assessments levied against benefited properties. A <br /> project listing is shown on Page 5. Assessments in the aggregate amount of $335,100 will be <br /> filed on or about October 15, 2001. Assessments will be spread over 15 years with even annual <br /> principal payments. Interest will be charged on the unpaid principal balance at a rate 6.5%. The <br /> effective rate on the Bonds is estimated to be approximately 4.65%. Our projection of <br /> assessment income is shown on Pages 6 and 7. <br /> Our recommended principal structure for the Bonds is shown on Page 8. Because the August 1, <br /> 2001 and February 1, 2002 interest payments will come due prior to receipt of any taxes or <br /> assessments, the proceeds of the Bonds include capitalized interest sufficient to make those <br /> payments. Debt service has been structured around the anticipated assessment income <br /> receipts. Columns 1 through 4 show the annual principal, estimated interest rates and projected <br /> total principal and interest payments, given the current market environment. Columns 5 and 6 <br /> show the capitalized interest and net debt service requirements. Column 7 shows the 5% <br /> overlevy which is required by State statutes and serves as a protection to bondholders and the <br /> City in the event of delinquencies in the collection of assessments or taxes. Column 8 shows <br /> the total projected assessment income developed on Pages 6 and 7. Column 9 shows the <br /> • difference between columns 7 and 8. Based on projected assessment income, it is expected <br /> that the City will need to levy ad valorem taxes to pay debt service on the Bonds. The annual <br /> levy amount is estimated to average approximately $77,550. <br /> Springsted Incorporated is pleased to again be of service to the City of St. Anthony. <br /> Respectfully submitted, <br /> SPRINGS D Incorporated <br /> Provided to Staff: Continuing Disclosure Contract Amendment <br /> Page 4 <br />