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Presale Report City of St. Anthony, Minnesota March 22, 2016 Page 1 Executive Summary of Proposed Debt Proposed Issues: $1,510,000 General Obligation Improvement Bonds, Series 2016A and $1,495,000 General Obligation Tax Abatement Bonds, Series 2016B 2016A Purpose: The 2016A proposed issue includes financing for the 2016 Road reconstruction projects. It is the intent of the City to levy special assessments in the amount of approximately $303,464 to benefiting property owners in 2016 for collection in years 2017 through 2031 at a rate of 2% over the True Interest Cost of the proposed Bonds. Annual assessments are paid on an equal principal basis. The City anticipates receiving approximately $31,125 (10%) in prepayments on the special assessments from the projects this year so the Bond has been reduced by this amount. Remaining debt service will be paid from a tax levy, which will not be required for collection until 2016. We have assumed capitalized interest through the February 1, 2017 payment in order to offset any immediate levy requirement. 2016B Purpose: The 2016B proposed issue includes financing for the water quality and flood improvements to Mirror Pond, the City’s regional storm water pond and complete nearly 1.5 miles of new sidewalk construction and ADA upgrades at eight intersections to improve pedestrian safety within the City. Debt service will be paid with a tax levy. Authority: The 2016A Bonds are being issued pursuant to Minnesota Statutes, Chapter 429. Because the City is assessing at least 20% of the project costs, the Bonds can be a general obligation without a referendum and will not count against the City’s debt limit. The Bonds will be general obligations of the City for which its full faith, credit and taxing powers are pledged. The 2016B Bonds are being issued pursuant to Minnesota Statutes, Chapter 469.1814. The City is required to hold a public hearing on the abatement and the public purpose it serves. The hearing is scheduled for April 12, 2016. In addition, the amount of property taxes abated in any year may not exceed (1) 10% of the net tax capacity of the City or (2) $200,000, whichever is greater. The greater of these two calculations is 10% of the net tax capacity. The City’s portion of payment on the Bonds and other outstanding abatement bonds (2009A) is approximately $230,000/year, which is well below the statutory maximum. The Bonds will be general obligations of the City for which its full faith, credit and taxing powers are pledged. 22