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The following graph depicts the remaining balance of the City’s outstanding debt by year. <br />Remaining Debt Service <br /> $35 <br /> $30 <br /> $25 <br />Millions <br /> $20 <br /> $15 <br /> $10 <br /> $5 <br /> $- <br />Year20172019202120232025202720292031 <br />Legal Debt Limit <br />Minnesota State Statutes Section 475.51 generally limits net debt to no more than threepercent of the <br />estimated market value of the taxable property within the municipality. Under State Lawanumber of <br />categories of debt are excluded from the net debt calculation, one of which (private housing bonds) is a <br />factor in the City’s calculation. The City’s debt limit is calculated as follows: <br />Estimated Market Value$3,814,082,800 <br />Debt Limit (3% of total estimated market value)114,422,484 <br />Total Outstanding Debt31,245,000 <br />Less Amount Exempted from Limit(840,000) <br />Total Net Debt Applicable To Limit30,405,000 <br />% of Allowable Limit27% <br />As shown in the table, the City is only at 27% of itsallowable debt limit.At this time the City does not <br />have any plans to issue new debt. <br />General Obligation Pledge <br />The City’s general obligation pledge is associated with all outstanding bond issues. However, both the <br />private activity housing bonds and the TIF Bonds are expected to be repaid with project-related revenues <br />and will not require a separate tax levy. <br />DebtRetirement Strategy <br />The City maintains arelatively rapid debt retirement schedule to provide for astrong bond rating (currently <br />AaaMoody’s and AAA S&P) and for future debt capacity. The city’s debt on a per capita basis at the end <br />of 2015will be $933. <br />79 <br /> <br />