2020.07.06 CC Packet - Laserfiche WebLink

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2020-2024 Capital Improvement Plan Page 4 7. Operating costs of the proposed improvements. The annual operating cost of the new facility is expected to be approximately $100,000. The annual operating cost in the current facility is approximately $85,000. 8. Options for shared facilities with other cities or local governments. It was determined by the Council that sharing facilities of this type will not meet the City's current and future needs. Overlapping Debt (Preliminary) Overlapping debt consists of all the taxing jurisdictions within the City of Hugo and is a measure of the total debt burden with the City. The other taxing jurisdictions include Washington County, ISD 624, ISD 831, ISD 832, ISD 834 and the Metropolitan Council. The total General Obligation debt and the City's share of that debt is shown in the table below: Debt Applicable to Tax Capacity in City Est. G.O. Debt Percent Amount Taxing Unit As of 12/31/19 Washington County $ 136,685,000 5.38% $ 7,350,977 I.S.D. #624 77,560,000 14.70% 11,404,568 I.S.D. #831 155,405,000 3.08% 4,778,836 I.S.D. #832 45,805,000 4.24% 1,940,381 I.S.D. #834 93,370,000 0.83% 773,299 Metropolitan Council Regional Transit 265,680,000 0.40% 1,066,708 Total $ 27,314,769 Limitations on Amount M.S. 475.521 limits the amount of bonds that can be issued under the CIP authority. The statutes state that the total amount that can be used for debt service in any one year cannot exceed 0.16% of taxable market value for the City. The City currently does not have any outstanding debt issued under M.S. 475.521. The statutory maximum annual debt service payment allowed is approximately $3,065,370. The maximum annual debt service payment on the proposed $7,200,000 CIP Bonds is estimated to be approximately $532,767. Given the estimated debt service payments, the City will not exceed the statutory limit. Table 1 below provides the calculations: