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<br /> <br /> <br /> <br />Presale Report <br />City of St. Anthony, Minnesota <br />March 28, 2017 <br />Page 1 <br /> <br />Executive Summary of Proposed Debt <br /> <br />Proposed Issue: $5,600,000 General Obligation Bonds, Series 2017A <br />Purposes: The 2017A Bonds includes three components: <br />Improvement Portion (2,750,000): <br />This portion of the Bonds is being issued to pay for the costs of the City’s 2017 <br />road reconstruction project. Debt service will be paid from tax levy and special <br />assessments. The City intends to levy a total of $617,459 in special assessments <br />to benefitting property owners, of which $216,110 (35%) is anticipated to be <br />collected in pre-paid assessment (the Bond amount has been reduced by this <br />amount accordingly). The remaining $401,348 of special assessments will be <br />collected in years 2019 to 2033 at a rate of 2% over the True Interest Costs of <br />the Bonds. Annual assessments are paid on an equal principal basis. <br /> <br />Equipment certificate portion ($520,000): <br />This portion of the Bonds is being issued for the purchase of a new fire truck. <br />Debt service will be paid from ad valorem property taxes. <br /> <br />Current Refunding of the GO Bonds, Series 2009A (improvement portion <br />- $1,630,000 and tax abatement portion - $890,000): <br />This portion of the Bonds is to complete a current refunding of the above <br />referenced prior bonds. This portion of the Bonds is considered to be a current <br />refunding as the prior bonds are callable (pre-payable) now, (call date of 2/1/17). <br />The improvement portion of the Bonds is paid from special assessments against <br />benefitting property owners and a tax levy. The tax abatement portion of the <br />Bonds is paid from the City’s portion of taxes abated from specific parcels that <br />surround Emerald Park. <br />Interest rates on this portion of the Bonds are 1.25% to 2.3%. The improvement <br />portion of the refunding is expected to reduce interest expense by approximately <br />$252,490 from 2019 to 2025. The present value benefit of the refunding is <br />estimated to be approximately $75,614, which is equal to 4.491% of the <br />refunded debt service. <br />The tax abatement portion of the refunding is expected to reduce interest <br />expense by approximately $44,758 from 2018 to 2025. The present value benefit <br />of the refunding is estimated to be approximately $40,591, which equal to <br />4.414% of the refunded debt service. <br />In total, this refunding is expected to save approximately $297,248 of interest <br />from 2018 to 2025 or approximately $41,000/year. <br /> <br />16