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118 Debt Isst_aitice Services Executive Summary of Proposed Debt Presale Report February 28, 2012 City of St. Anthony, Minnesota Page 1 Proposed Issue: $9,220,000 GO Bonds, Series, 2012 A The Bonds are being issued pursuant to Minnesota Statues, C1201%, Authority: 429 and 475. For the new money portion of the bonds and the refunding 2006A and 2007A bonds, because the City is assessing at leasof the project costs, the Bonds can be a general obligation witouta referendum and will not count against the City's debt limit. For the refunding of the 2003 HRA Lease Revenue Bonds, the City held the required public hearing in 2011 to issue these as GO CIP Bonds. CIP debt is limited to 3% of annual taxable market value. In the City, the taxable market value is $777,784,100. Therefore, the total amount of outstanding debt cannot exceed $23333,523. These values are for 2010/11 tax year (since 2012 was not yet available). As of October 31, 2011, the City had $7,195,000 subject to the legal debt limit (this amount includes the 2003 Bonds that are being refunded). As such, issuance of the CIP Bonds will be within the Overall statutory debt limit ror the City, Whether the Bonds are issued as a current Or advanced refunding. A Separate linlltatlOn Under the CIP Act is that. without referendum, the total amount Of principal and interest in any one year on all CIP Bonds issued by the City debt cannot exceed 0.16% of the total taxable market value in the nLill icipaIity. In the City, that nlaximunl annual debt service amount is $1,244,455 for the 2010/11 tax year ($777,784,100 x .0016). The annual principal and interest payments On the CIP Bonds proposed t0 be Issued ander this CIP Will average approximately $428,488. As such, debt service on the C11) Bonds will be well within the annual limits under the CIP Act. Purposes/Funding Sources: The proposed issue includes financing for the following purposes: • New money portion debt service will be paid from special assessments and lax ICV\. • Refunding of the 2006A and 2007A debt service will be paid Prom existing sources (special assessments and tax levy). • Rcrunding of the 2003 HRA Public Facility Lease RCVe1lUC Bonds debt service will be paid from existing sources (100% tax levy) FOr the I'efuudillg 1:0111011 Ot the bonds', the pnrpOSC Is t0 pi'OVIdC funds sufficient for an advance refunding of the 2013 through 2023 maturities of the 2003 1IRA Public Facilities Lease Revenue Bonds and the 2013 through 2022 maturities G.O. Improvement Bonds, Presale Report February 28, 2012 City of St. Anthony, Minnesota Page 1