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<br /> <br /> <br /> <br />Presale Report <br />City of St. Anthony, Minnesota <br />March 28, 2017 <br />Page 2 <br /> <br />Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapters: <br /> 429 – 2017 Street reconstruction portion <br /> 410.32 – Equipment certificate portion <br /> 469.1814 – Tax abatement portion <br /> 475 - General bonding authority <br />The Bonds will be general obligations of the City for which its full faith, credit, <br />and taxing powers are pledged <br />2017 Road reconstruction portion <br />Because the City is assessing at least 20% of the project costs, the Bonds can be <br />a general obligation without a referendum and will not count against the City’s <br />debt limit. <br />Equipment Certificate portion <br />These Bonds count against the City’s debt limit, which is limited to 3% of <br />estimated market value (EMV) by statute. The City’s EMV is $906,846,700 for <br />Pay 2017, and 3% of the EMV produces a debt limit of $27,205,401. <br />This portion of the Bonds and the City’s outstanding debt that counts against <br />this limit as of March 10, 2017, is $4,965,000. This is well below the $27 <br />million noted above. <br />Current refunding portion (2009A Bonds) <br />A portion of these Bonds are paid with tax abatement. The amount of property <br />taxes abated in any year may not exceed 1) 10% of the estimated net tax capacity <br />of the City or (2) $200,000, whichever is greater. The City’s Pay 2017 estimated <br />net tax capacity is $9,305,013. Therefore, the maximum amount of annual <br />property taxes that can be abated is $930,501. <br />The amount of annual debt service being paid with tax abatements, inclusive of <br />this issue and the 2016B bonds, is approximately $220,000, which is below the <br />statutory maximum. <br />Term/Call Feature: The Bonds are being issued for a 16-year term. Principal on the Bonds will be <br />due on February 1 in the years 2018 through 2033. Interest is payable every six <br />months beginning February 1, 2018. We have capitalized interest in the amount <br />of $53,673 to pay interest costs until adequate tax and special assessment funds <br />are received. <br />The equipment certificate portion of the Bonds are being issued for a 10-year <br />term. Principle on the Bonds will be due on February 1 in the years 2018 through <br />2027. The refunding portion of the Bonds are being issued for the same term as <br />the prior bonds (8 years remaining). <br />The Bonds maturing on and after February 1, 2027 will be subject to prepayment <br />at the discretion of the City on February 1, 2026 or any date thereafter. <br />Bank Qualification: Because the City is expecting to issue no more than $10,000,000 in tax exempt <br />debt during the calendar year, the City will be able to designate the Bonds as <br />17