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City of Arden Hills, Minnesota <br />Five-Year Capital Improvement Plan for Bond Issuance 7 <br />V. FINANCING <br />The total amount of proposed expenditures under this CIP is up to $105,000,000. If <br />these expenditures are to be funded, that amount of money is anticipated to be <br />generated through the sale of general obligation CIP Bonds within the identified five- <br />year period. The anticipated bond size of $4,680,000 is based upon funding the <br />City’s proportionate share of the estimated hard and soft costs identified for the <br />project, plus estimated issuance costs, capitalized interest and contingency and may <br />be issued in one or more series of bonds, at one time or from time to time. Principal <br />and interest on the CIP Bonds will be paid through a combination of property tax levy <br />and franchise fees and current estimates of size and repayment of the CIP Bonds <br />under consideration is shown in Appendix B. <br />In financing the CIP, two significant statutory limitations apply: <br /> <br />1. Under Chapter 475, with few exceptions, cities cannot incur debt in excess of 3% <br />of the assessor’s estimated market value (EMV) for the city. As noted in the table <br />below, the City’s debt subject to this requirement, including the proposed CIP <br />Bonds, is within the required threshold: <br /> <br />Assessor's Estimated Market Value 1,844,682,400 <br />Multiply by 3% 0.03 <br />Statutory Debt Limit 55,340,472 <br />Less: Debt Paid Solely from Taxes 0 <br />Less: Proposed Bond Issue(s)(4,680,000) <br />Unused Debt Limit 50,660,472 <br />Net Debt Limit <br /> <br /> <br />2. A separate limitation under the CIP Act is that, without referendum, the total <br />amount of principal and interest in any single year payable on all CIP Bonds <br />issued by the City cannot exceed 0.16% of the total estimated market value in <br />the municipality. In the City, that maximum annual debt service amount is <br />$2,951,492 for pay 2025. The highest annual principal and interest payments on <br />the proposed Bonds to be issued under this CIP are estimated to be <br />approximately $421,000. As such, debt service on the CIP Bonds will be within <br />the annual limits under the CIP Act. <br />