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