2005-02-02 WS All City Committee/Commission Meeting

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Consequently, the total outstanding debt can not exceed $4,847,140. As of December 31,2004, the City of Centerville has $ 0 debt subject to the legal debt limit. The City of Centerville's commitment of $827,750 is well under the statutory debt limit of $4,847,140. In addition to this limit, the total amount of principal and interest payable in anyone year for bonds issued under Minnesota Statutes, Section 475.521 cannot exceed .05367% of the Assessor's Taxable Market Value for the county. In Anoka County, the current Assessor's Taxable Market Value is $23,601,620,500. Consequently, the capital improvements plan annual principal and interest payment limit in Anoka County under 475.521 is $12,667,151. The City of Centerville's principal and interest payments are estimated to be $77,000 annually for a 15 year period. This legislature may amend the maximum debt service on bonds under Section 475.521, to apply a percentage of market value in the City rather than the County as a whole. If the .05367% limit applied to the City, the annual debt service limit would be $130,073 ($242,357,000 x .05367%). Even under this limit, the City's expected debt service payment of $77,000 would be within the maximum payment allowed. FinancinCl Plan for Police Facility The police facility is expected to be financed through issuance of bonds by the City of Circle Pines with an expected principal amount of $2,365,000. As noted above, the City of Centerville's commitment is to pay debt service on a portion of those bonds equal to it's 35% share, or approximately $827,750. In effect, the portion of the bonds paid by the City of Centerville will be a general obligation of the City of Centerville. Likewise, the portions allocated to Circle Pines and Lexington will be general obligations of those cities.