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City of Roseville — 2006 Budget <br />The following graph depicts the remaining balance of the City's outstanding debt by year. <br />Legal Debt Limit <br />14,000 <br />12,000 <br />Cn 10,000 <br />r <br />0 8,000 <br />6,000 <br />4,000 <br />2,000 <br />Outstanding Bonded Debt Schedule <br />2006 2008 2010 2012 2014 2016 2018 <br />D General Obligation Debt <br />Minnesota State Statutes Section 475.51 generally limits net debt to no more than two percent of the <br />estimated market value of the taxable property within the municipality. A number of categories of debt <br />are not included within the net debt calculation. The City's debt limit is calculated as follows: <br />Estimated market value <br />$ 3,247,056,900 <br />Debt Limit (2% of total estimated market value) 64,941,13 8 <br />Total Outstanding Debt 13,120,000 <br />Less amount backed by special assessments (3,585,000) <br />Total net debt applicable to limit 1 $ 9,535,000 <br />As the table above indicates, the City is well below its allowable debt limit. <br />Debt Retirement Strategy <br />The City has established and is maintaining a rapid debt retirement schedule to provide both a better <br />bond rating in the future (currently Aal Moody's and AA S &P) and to provide for future debt capacity. <br />The city's debt on a per capita basis at the end of 2005 will be $389. The debt repayment schedule <br />remains on a rapid pace and the city is well below the median debt level as established by the rating <br />agencies. The median level is currently at $750 for cities the size of Roseville. <br />Impact on Operations <br />The City's property tax levy has stabilized at $1,625,000 annually and is expected to remain at this level <br />until 2012. Absent the issuance of any additional property tax - supported debt, the debt levy is expected <br />to slowly decline beginning in 2013 to a level of $875,000 in 2015. All existing debt will be retired no <br />later than 2019. <br />Future Debt Issuance <br />The City has no plans to issue new property tax - supported debt. In conjunction with potential new <br />redevelopment, the City may issue non - general obligation tax increment bonds in 2007 or later. <br />W <br />