HomeMy WebLinkAbout[08b] Financing Alternativesa+Jt
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Council Agenda Item 8 b
MEETING DATE: November 5, 2009
AGENDA ITEM: Financing Alternatives
SUBMITTED BY: Administration
BOARD/COMMISSION/COMMITTEE RECOMMENDATION:
PREVIOUS COUNCIL ACTION: The Council received the feasibility report for the proposed
improvements to 17th Avenue.
BACKGROUND INFORMATION: To help determine the financial viability of the project Monte Eastvold
was contacted to prepare financing alternatives. The City does have an ability to issue bonds to pay for
all or any portion of the improvement. He will be preparing alternatives that we will present on
Thursday evening.
BUDGET/FISCAL IMPACT:
ATTACHMENTS: None.
Proposed tax levy 2011- 2021 (2026)
REQUESTED COUNCIL ACTION: Informational only
45 South 7"' Street
Strile 2UUU
N Q RT H L A N D SECURITIES Mirrrrecrpolis, MN 5541}Z
,.
(8UU) 851-2920
(G12) 851-59U4
Fox (612} 851-5917
E X T E R N A L M E M O R A N D U M
DATE: Novetnt~er 3, 2009
TO: Mayor & City Council
City of St. Joseph, MN
FROM: Monte )rastvold, Vice President /~
Northland Securities
RE: 2010 Street Project Financing Options
Attached are three debt service schedules related to the proposed 2010 street improvement
project. Two examples (429 & 475) are both tax-exempt General Obligation bond issues. The
third exan2ple is a taxable Build America Bond {BAB).
Under MN Statutes 429, a minimum of 20% of the issue must have special assessments as pact
of the revenue stream with which to retire the debt. This example assumes that special
assessments will make up 40% of the revenue stream.
Under MN Statutes 475, Street Reconstruction Bonds would be issued. Street .Reconstruction
Bonds do not require special assessments to be collected at any level. The attached scenario has
zero special assessments being collected, with all revenues coming from annual tax levies,
A comparison of the above-mentioned examples can be made (with and without special
assessment revenues) in the Tax Impact Analysis on page 2 of each scenario.
Build America Bonds were created as part of the Federal government's recent economic
stimu]us package. BAB's are issued using taxable interest rates. Though higher than tax-
exempt interest rates, the Federal government pays 35% of the lnterest catnponent of the bond
payments. In most cases, this Federal subsidy brings the tax in3pact of a BAB lower than that of
atax-exempt bond issue. Page 3 of the BAB scenario illustrates the net effect of the Federal
reimbursement to the City for 35% of the Interest payments.
Please do not hesitate to call nee with any questions regarding this information. Thanks
429
CITY OF ST. JOSEPH, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS OF 2010, SERIES A
Bo.nc) PaYriients:.:. ~ . R+3venu~ S.ourcds ~ -~ .:?Cash'~low. . .
Est. Total
(12-7) Interest Debt
Year Principal Rats Interest Pa meet Statutory
5.00%
Covera a Special
Cap. Other Assessment
Interest Revenues Income
Tax
Lev Annual
Surplus/
Deficit
Cumulative
Balance
2010 0 0.000% 16,684 16,684 16,684 33,368 0 1,620 0 18,304 18,304
2011 45,000 2.250% 33,368 78,368 82,286 0 41,057 32,000 -9,229 9,075
2012 45,000 2.650°l0 32,355 77,355 81,223 0 39,763 35,000 -6,460 2,615
2013 45,000 3.000% 31,163 76,163 79,971 0 38,4fi9 40,000 -1,501 1,114
2014 45,000 3.300% 29,813 74,813 78,553 0 37,176 45,000 3,622 4,736
2015 45,000 3.550% 28,328 73,328 76,994 0 35,$79 45,000 3,886 8,622
2016 50,000 3.800% 26,730 76,730 $0,567 0 34,583 45,000 -983 7,638
2017 50,000 4.050% 24,.830 74,830 78,572 0 33,287 45,000 -285 7,354
2018 50,000 4.250% 22,805 72,805 76,445 0 31,991 45,000 545 7,899
2099 55,000 4.400% 20,680 75,684 79,464 0 30,694 45,000 -3,770 4,130
2020 55,000 4.550% 18,260 73,260 76,923 0 29,401 50,000 2,478 6,607
2021 60,000 4.650% 15,758 75,758 79,545 0 28,104 50,000 -1,441 5,167
2022 60,000 4.750% 12,968 72,968 76,616 0 26,808 50,000 192 5,359
2023 65,000 4.850% 10,118 75,118 78,873 0 25,512 50,000 -3,361 1,997
2024 70,000 4.950% 6,965 76,965 80,813 0 24,218 55,000 -1,595 402
2025 70,000 5.000°!0 3,500 73,500 77,175 0 22,922 55,000 747 1,149
810,000 334,321 1,144,321 1,200,703 33,36$ 0 481,485 687,000 1,149
A~pl~oaEibri of Fu;rids 21~7Q~aty~et::Rro~et;E: (~k~ .
Est. 2010 Street Project (A) 747,000 Est. Watermain Costs 155,000
Less: City Cash Contribution 0 Est. Sanitary Sewer Costs 192,000
Total Hard Costs 747,000 Est. Street Costs 400,000
Add: Issuance Expenses Includes Engineering F ees
Est. Underwriter's Discount @1.96% 15,87fi And Contingencies
Est. Capitalized Interest (12 Months) 33,368
Est. Financial Advisory Fee 0
Est. Misc. 0
Est. Bond Counsel Fee 5,000
Est. Rating Fee 5,600
Est. County Auditor/O.S. Printing 250
Est. Registrar/Paying Agent Fee 7,125 Total Improvement Costs: 747,000
Total 814,219
Less: Investment Income -4,315
Rounded For Issuance 810,000
;Bond lei#iyrmatirti; ; ASsi3.s5iner!t ltt~o~it~>
Bonds Dated: 6/1/2010
Bonds Mature: 12/9/11 Through 12/1/25 Est. Amount of Assessment s: $324,000
Interest Payments: 12/1/10 & Each 6/1 & 1211 Thereafter Percentage of Issue Assessed: 40.0
Call Option: Callable 12/1!201 8 @ Par n erT`f estate on Assessments: 6.00%
Registrar/Pay Agent: Northland Trust Services First Installment Collection: 2011
Purchase Price: $794,124 Number of Annual Installments: 15
Est. Average Coupon: 4.4996%_ Start Date of Assessments: 11/30/2010
Est. Net Effective Rate: 4.7133%
Est. Bond Sale Date: Late May, 2010.
Est. Bond Closing Daie: Early June, 2010.
Bond Counsel: Briggs & Morgan
Monte Eastvold, V.P., Northland Securities, Inc. Dated: 11!3/2009
429
ASSESSMENT INCOME
..
..
.Street . .. ..
.
~
-.. ~Assessments~ : ; .. .
Assessments
~~
..
Estimated Estimated
Assessment Interest Assessment Assessment Interest Assessment
Year Principal 6.00% Income Principal 0.00°1o Income
2010 0 1,620 1,620 0 0 0
2011 21,600.00 19,440 41,040 0.00 0 0
2012 21,600.00 1$,144 39,744 0.00 0 0
2013 21,600.00 16,848 38,448 0.00 0 0
2014 21,600.00 15,552 37,152 0.00 0 0
2015 21,600.00 14,256 35,856 0.00 0 0
2016 21,600.00 12,960 34,560 0.00 0 0
2017 21,600.00 11,664 33,264 0.00 0 0
2018 21,600.00 10,368 31,968 0.00 0 0
2019 21,600.00 9,072 30,672 0.00 0 0
2020 21,600.00 7,776 29,37fi 0.00 0 0
2021 21,600.00 6,480 28,080 0.00 0 0
2022 21,600.00 5,184 26,784 0.00 0 0
2023 21,600.00 3,888 25,488 0.00 0 0
2024 21,600.00 2,592 24,192 0.00 0 0
2025 21,600.00 1.296 22.896 0.00 0 0
I 324,000.00
. 157,140 481,1401 0.00 0
. -_ .
• •, • `fax Irhp~ct.:Anal his ... .. :. D
•.
,
Annua! Tax Residential Market Value
Est. Tax Capacity Capacity $100,000 $150,000 $200,000
Tax Value 1»cr. Rate Net Tax Capacity
Year Lev 9.00• Increase $9,000 $1,500 $2,000
2010 0 3,664,663
201 i 32,000 3,701,310 0.86% 8.65 12.97 17.29
2012 35,000 3,738,323 0.94°/° 9.36 14.04 18.72
2013 40,000 3,775,706 1.06% 10.59 15.89 21.19
2014 45,000 3,813,463 1.18% 11:.80 17.70 23.60
2015 45,000 3,851,598 1.17% 11.68 17.53 23.37
2016 45,000 3,890,114 1.16% 11.57 17.35 23.14
2017 45,000 3,929,015 1.15% 11.45 17.18 22.91
2018 45,000 3,968,305 1.13°k 11.34 17.01 22.68
2019 45,000 4,007,988 1.12% 11.23 16.84 22.46
2020 50,000 4,048,068 9.24% 12.35 18.53 24.70
2021 50,000 4,0$8,549 122% 1223 18.34 24.46
2022 50, 000 4,129,434 1.21 °k i 2. i 1 18.16 24.22
2023 50,000 4,170,728 1.20°l0 11.99 17.98 23.98
2024 55,000 4,212,436 1.31 % 13.06 19.58 26.11
2025 55,000 4,254,560 1.29°l0 12.93 19.39 25.$5
687,000 Average Annual Incr: $11.49 $17.23 $22.98 ~--------
Average Monthly Incr: $0.96 $1.44 $1.91
Monte Eastvold, V.P., Northland Securities, Inc. Dated: 11/3/2009
475
CITY OF ST. JOSEPH, MINNESOTA
GENERAL OBLIGATION STREET RECONSTRUCTION BONDS OF 2010, SERIES A
,..
Bdhct Pavnents: .::. ~ : t2evenue SburCes;... ` ;•: t;~sti'.:~Ibw,' s:
Year Est.
(12-7) lnteresf
Principal Rate
lnteresf Total
Debt
Pa meet Statutory
5.00%
Covera a
Cap. Other
lnteresf Revenues Special
Assessment
Income
Tax
Lev Annual
Surplus/
Deficit
Cumulative
Balance
2010 0 0.000% 16,684 16,684 16,684 33,368 0 0 0 16,684 16;684
2011 45,000 2.250% 33,36$ 7$,368 82,286 0 0 76,000 -6,286 10,398
2012 45,000 2.650% 32,355 77,355 81,223 0 0 77,000 -4,223 6,175
2013 45,000 3.000% 31,163 76,163 79,971 0 0 78,000 -1,971 4,205
2014 45,000 3.300% 29,813 74,813 78,553 0 0 78,000 -553 3,651
2015 45,000 3.550% 28,328 73,328 76,994 0 0 78,000 1,006 4,658
2016 50,000 3.800% 26,730 76,730 80,567 0 0 78,000 -2,567 2,091
2017 50,000 4.050% 24,830 74,830 78,572 0 0 78,000 -572 1,520
2018 50,000 4.250% 22,805 72,805 76,445 0 0 78,000 1,555 3,074
2019 55,000 4.400% 20,680 75,680 79,464 0 0 78,000 -1,464 1,610
2020 55,000 4.550% 18,260 73,260 76,923 0 0 78,000 1,077 2,687
2021 60,000 4.650% 15,758 75,758 79,545 0 0 78,000 -1,545 1,142
2022 60,000 4.750% 12,968 72,968 76,616 0 0 78,000 1,384 2,526
2023 65,000 4.850% 10,118 75,118 78,873 0 0 79,000 127 2,653
2024 70,000 4.950% 6,965 76,965 80,813 0 0 79,000 -1,813 839
2025 70,000 5.000% 3,500 73,500 77,175 0 0 79,000 1,825 2,664
810,000 334,321 1,144,321 1,200,7031 33,368
Applicatrpri' dfi Fu,nils
0 0 1,170,000) 2,664
20~1tiStreefProieet:. fAk . : ° ... .... .
Est. 2010 Street Project (A) 747,000
Less: City Cash Contribution 0
Total Mard Costs 747,000
Add.• Issuance Expenses
Est. Underwriter's Discount @1.96% 15,876
Est. Capitalized Interest (12 Months) 33,368
Est. Financial Advisory Fee 0
Est. Misc. D
Est. Bond Counsel Fee 5,000
Est. Rating Fee 5,600
Est. County Auditor/O.S. Printing 250
Est. Registrar/Paying Agent Fee 7,125
Tote! 814,219
Less: Investment Income -4,315
Rounded For Issuance 810,000
Bo(3ct Irifc~rmatjirt,
Bonds dated: 6/1/2010
Bonds Mature: 12/1/11 Through 12/1/25
Interest Payments: 1211110 ~ Each 611 & 121 1 Thereafter
Celt Option: Callable 12/1/2018 @ Par
Registrar/Pay Agent: Northland Trust Services
Purchase Price: $794,124
Est. Average Coupon: 4.4996 0
Est. Net Effective Rate: 4.71330
Est. Bond Sale Date: Late May, 2010.
Est. Bond Closing Date: Early June, 2010.
Bond Counsel: Briggs & Morgan
Est. Watermain Costs 155,000
Est. Sanitary Sewer Costs 192,000
Est. Street Costs 400,000
includes Engineering Fees
And Contingencies
Total Improvement Costs: 747,000
Assessment irticoiiie
Es#. Amount of Assessments: $0
Percentage of Issue Assessed: 0.00%
fnteresE Ra#e on Assessments: 0.00%
First Installment Collection: N.A.
Number of Annual Installments: 0
Start Date of Assessments: N.A.
Monte Eastvold, V.P., Northland Securities, Inc. Dated: 11/3/2009
475
ASSESSMENT INCOME
Assessments' : Assessments : ~:
Estimated Estimated
Assessment Interest Assessment Assessment lnferest Assessment
Year Princi a! 0.00% Income Princi al 0.00% Income
2010 0 0 0 0 0 0
2011 0.00 0 0 0.00 0 0
2012 0.00 0 0 0.00 0 0
2013 0.00 0 0 0.00 0 0
2014 0.00 0 0 0.00 0 0
2015 0.00 0 0 0.00 0 0
2016 0.00 0 0 0.00 0 0
2017 0.00 0 0 0.00 0 0
2018 0.00 0 0 0.00 0 0
2019 0.00 0 0 0.00 0 0
2020 0.00 0 0 0.00 0 0
2021 0.00 0 0 0.00 0 0
2022 a.oa o o a.oo 0 0
2023 a.oo 0 o a.oo 0 0
2024 0.00 0 0 0.00 0 0
2x25 0.00 0 0 0.00 0 0
o.o0 0 0 l o.o0 0 0
'Fax Imp~~t~AhatvsiS:
Annual Tax Residential Market Value
Esf. Tax Capacity Capacity $100,000 $150,000 $200,000
Tax Value Incr. Rate Net Tax Capacity
Year Levy 1.00% Jncrease $1,000 $1,500 $2,000
2010 0 3,664,663
2011 76,000 3,701,310 2.05°!0 20.53 30.80 41.07
2012 77,000 3,738,323 2.06% 20.60 30.90 41.19
2013 78,000 3,775,706 2.07% 20.66 30.99 41.32
2014 78,000 3,813,463 2.05°~ 20.45 30.68 40.91
2015 78,000 3,851,59$ 2.03°l0 20.25 30.38 40.50
2016 78,000 3,890,114 2.01% 20.05 30.08 40.10
2017 78,000 3,929,015 1.99% 19.85 29.78 39.70
201$ 78,000 3,968,305 1.97°l0 19.66 29.48 39.31
2019 78,000 4,007,988 1.95% 19.46 29.19 3$.92
2020 78,000 4,048,068 1.93% 19.27 28.90 38.54
2021 78,000 4,088,549 1.91% 19.08 28.62 38.16
2022 78,000 4,129,434 1.89% 18.89 28.33 37.78
2023 79,000 4,170,728 1.89% 18.94 28.41 37.88
2024 79,000 4,212,436 1.88% 18.75 28.13 37.51
2025 79,000 4,254,560 1.86% 18.57 27.85 37.14
1,170,000 Average Annual Incr: $19.67 $29.50 $39.34 de---
Average Monthly Incr: $1.64 $2.46 $3.28
Monte Eastvold, V.A., Northland Securities, Inc. Dated: 11/3/2009
BAB-B
CITY OF ST. JOSEPH, MINNESOTA
G.O. TAXABLE IMPROVEMENT BONDS OF 2010, SERIES A {BUILD AMERICA BONDS)
' t3ortd Pavr~~nts, : `,•. )': Ri~ver`iU+~S.dkiir.~ess.. .. `.~.
ItiF)ow. ',
Est. Total Statutory Special Annual
(12-1) lnterest Debt 5.00% Cap. ether Assessment Tax Surplus/ Cumulative
Year Principal Rate lnterest Payment Coverage lnterest Revenues Income Le Deficit Balance
2010 0 0.000% 20,449 20,449 20,449 40,898 0 0 0 20,448 20,449
2011 45,000 2,650% 40,898 85,898 90,192 0 0 84,000 -6,192 14,256
2012 45,000 3.100% 39,705 84,705 88,940 0 0 84,000 -4,940 9,316
2013 45,000 3.500% 38,390 83,310 87,476 0 0 84,000 -3,476 5,841
2014 45,000 3.900% 36,735 89,735 85,822 0 0 84,000 -1,822 4,019
2015 45,000 4.250% 34,9$0 79,980 83,979 0 0 84,000 21 4,040
2016 50,000 4.600% 33,068 83,068 87,221 0 0 84,000 -3,221 819
2017 50,D00 4,900% 30,768 80,768 84,806 0 0 84,000 -806 13
2018 50,000 5.150% 28,318 78,318 82,233 0 0 84,000 1,767 1,780
2019 55,000 5.350% 25,743 80,743 84,780 0 0 84,000 -780 1,000
2020 55,000 5.500% 22,800 77,800 81,690 0 0 84,000 2,310 3,310
2021 60,000 5.650% 19,775 79,775 83,764 0 0 84,000 236 3,546
2022 60,000 5.800% 16,385 76,385 80,204 0 0 84,000 3,796 7,342
2023 70,000 5.900°1° 12,905 82,905 87,050 0 0 84,000 -3,050 4,292
2024 70,OOD 6.000% 8,775 78,775 82,714 0 0 84,000 1,286 5,578
2025 75,000 6.100°!0 4,575 79,575 83,554 0 0 84,000 446 6,024
820,000 414,186 ,234,1 86 1,294,873 40,898 0 0 1,260,000 6,024
APl~litratiatiof Funds :. 21310Steeet.''P~`ojec#: {A) .
Est. 2010 Street Project {A) 747,000 Est. Watermain Costs 155,000
Less: Clty Cash Contribution 0 Est. Sanitary Sewer Costs 192,000
Total Hard Costs 747,000 Est. Street Costs 400,000
Add: Issuance Expenses Includes Engineering Fees
Est. Underwriter's Discount Q1.96% 16,072 And Contingencies
Est. Capitalized Interest (12 Months) 40,898
Est. Financial Advisory Fee 0
Est. Misc. 0
Est. Bond Counsel Fee 5,000
Est. Rating Fee 5,600
Est. County Auditor/O.S. Printing 250
Est_ Registrar/Paying Agent Fee 7,125 Total Improvement Costs: 747,000
Total 821,945
Less: Investment Income -4,315
Rounded For Issuance $20,000
Bond In€irmat.~on;: ~ Assi~~stimertt Ihcotii~ .
Bonds Dated: 6/1/2010
Bonds Mature: 12/1/11 Through 1219/25 Est. Amount of Assessments: $0
Interest Payments: 1211!10 & Each 6/1 & 1211 Thereafter Percentage of Issue Assessed: 0.00%
Call Option: Callable 12/1/2018 @ Par Interest Rate on Assessments: 0.00%
Registrar/Pay Agenf: Northland Trust Services First Installment Collection: N.A.
Purchase Price: $803,928, Number of Annual Installments: 0
Est. Averacae Coupon: 5.4678°/`°"'~ Start Date of Assessments: N.A.
Esk. Net Effective Rate: 5.6800%
Est. Bond Sate Date: Late May, 2010.
Est. Bond Closing Date: Early June, 2010.
Bond Counsel: Briggs 8 Morgan
Monte Eastvold, V.P., Northland Securities, Inc. Dated: 11/3/2009
BAB-8
ASSESSMENT 1NGOME
Street I :. :.
'. Assessments : l..: Assessments
Year Assessment
Principal Interest
0.00% Assessment
Income Assessment
Princi al Interest
O.OOI Assessment
Income
2010 0 D 0 0 0 0
2011 0.00 0 0 0.00 0 0
2012 0.00 0 0 0.00 0 0
2013 0.00 0 0 0.00 0 0
2014 0.00 0 0 0.00 0 0
2015 0.00 0 0 0.00 0 0
2016 0.00 0 0 0.00 0 0
2017 0.00 0 0 0.00 0 0
2018 0.00 0 0 0.00 0 0
2019 0.00 0 0 0.00 0 0
2020 0.00 0 0 0.00 0 0
2021 0.00 0 0 0.00 0 0
2022 D.00 0 0 0.00 0 0
2023 0.00 0 0 0.00 0 0
2024 0.00 0 0 0.00 0 0
2025 0.00 0 0 0.00 0 0
~ 0.00 o D~ o.DO o 0
. T~ I m acC.Ai~lysis . , .
Annua! Tax Residential Market Vatue
Est. Tax Capacity Capacity $100,000 $150,000 $200,000
Tax Value Incr. Rafe Net Tax Capacity
Year Lev 1.00% Increase $1,000 $J, 500 $2,000
2010 0 3,664,663
2011 84,000 3,701,310 2.27% 22.69 34.04 45.39
2012 84,000 3,738,323 2.25% 22.47 33.70 44.94
2013 84,000 3,775,706 222°!0 22.25 33.37 44.49
2014 84,000 3,813,463 2.20% 22.03 33.04 44.05
2015 84,000 3,851,598 2.18% 21.81 32.71 43.62
2016 84,000 3,890,914 2.16% 21.59 32.39 43.19
2D17 84,000 3,929,D15 2.14% 21.38 32.07 42.76
2418 84,000 3,968,305 2.12°l0 21.17 31.75 42.34
2019 84,000 4,007,988 2.10% 20.96 31.44 41.92
2020 84,000 4,048,068 2.08% 20.75 31.13 41.50
2021 84,000 4,088,549 2.05% 20.55 30.82 41.09
2022 84,000 4,129,434 2.03% 20.34 30.51 40.68
2023 84,000 4,170,728 2.01% 20.14 30.21 40.28
2024 84,000 4,212,43'6 1.99% 19.94 29.91 39.88
2025 84,000 4,254,560 1.97% 19.74 29.62 39.49
1,260,000 Average Annual Incr: $29.19 $31.78 $42.37
Average Monthly Incr: $1,77 $2.65 $3.53
Monte Eastvold, V.P., Northland Securities, Inc. Dated: 11/3/2009
BAB-B
NET TAX LEVY ANALYSIS
~:~ond ija rrietts< f~eve,itue.Sources girderal3~B~r11bUxS~m+~tit
:,
Tax
Est. Total Statutory Special Less Levv After
Interest P&! Debt 5.00• Cap. Other Assessment Tax Federal Int. Ferlerat
Year Rate Pa ment Covers a Interest Revenues Income Levy Reimbursement Reimbursement
2010 0.000% 20,449 20,449 40,898 0 0 0 0 ^~'-^" 0
2011 2.650% 85,898 90,192 0 0 84,000 14,314 70,000
2012 3.100% 84,705 88,940 0 0 84,000 13,897 70,000
2013 3.500% 83,310 87,476 0 0 84,000 13,409 71,000
2014 3.900°10 81,735 85,822 0 0 84,000 12,857 71,000
2015 4.250% 79,980 83,979 0 0 84,000 12,243 72,000
2016 4.600% 83,068 87,221 0 0 84,000 11,574 72,000
2017 4.900% 80,768 84,806 0 0 84,000 10,769 73,000
2018 5.150% 78,31$ 82,233 0 0 84,000 9,911 74,000
2019 5.350% 80,743 84,780 0 0 84,000 9,010 75,000
2020 5.500% 77,800 81,690 0 0 84,000 7,980 76,000
2021 5.650% 79,775 83,764 0 0 84,000 6,921 77,000
2022 5.800% 76,385 80,204 0 0 84,000 5,735 78,000
2023 5.900% 82,905 87,050 0 0 84,000 4,517 79,000
2024 6.000% 78,775 82,714 0 0 84,000 3,071 81,000
2025 6.100% 79,575 83,554 0 0 84,000 1,601 $3,000
1,.234,186 1,294,873 40,898 0 0 1,260,000 137,808 1,122,000
Nei,T~x:Itxt~act.An~l ss;:
Annual Tax Residential Market Value
Est. Tax Capacity Capacity $100,000 $950,000 $200,000
Tax Value Incr. Rate Net Tax Capacity
Year Lev 9.00• Increase $1,000 $?,500 $2,000
2010 0 3,664,663
2011 70,000 3,701,310 1.89% 18.91 28.37 37.82
2012 70,000 3,738,323 1.87% 18.72 28.09 37.45
2013 71,000 3,775,706 1.88% 18.80 2$.21 37.61
2014 71,000 3,813,463 1.86% 18.62 27.93 37.24
2015 72,000 3,851,598 1.87% 18.69 28.04 37.39
2016 72,000 3,890,114 1..85°l0 18.51 27.76 37.02
2017 73,000 3,929,015 1,86% 18.58 27.87 37.16
2018 74,000 3,968,305 1.86% 18.65 27.97 37.30
2019 75,000 4,007,988 1.87°l0 18.71 28.07 37.43
2020 76,000 4,048,068 1.88% 18.77 28.16 37.55
2021 77,000 4,088,549 1.$8% 1$.83 28.25 37.67
2022 78,000 4,129,434 1.89% 18.89 28.33 37.78
2023 79,000 4,170,72$ 1.89% 18.94 28.41 37.8$
2024 81,000 4,212,436 1.92% 19.23 28.84 38.46
2025 83,000 4,254,560 1.95% 19.51 29.26 39.02
1,122,000 Average Annual Incr: $18.83 $28.24 $37.65 .~ ----
Average Monthly Incr: $1.57 $2.35 $3.14
Monte Eastvold, V.P., Northland Securities, Inc. Dated: 11/3/2009
45 South 7`r' Street
Suite 2UUU
NORTHLAND SECURITIES Minrrerrpolis, MN S54U2
(8UU} 851-2920
(GI Z) 851-5904
I~ nx (G12) 851-5917
E X T E R N A L M E M O R A N D U M
llA'TC: November 3, 2009
TO: Mayor 8i City Co~incil
City of St. Joseph, MN
.FROM: Monte )rastvold, Vice President /~
Northland Securities
RE: 2010 Street Protect Finaitcittg Options
Attached are tlu•ee debt service schedules related to the proposed 2010 street improvement
project. Two examples (429 & 475) are both tax-exempt General Obligation bond issues. The
third example is a taxable Build America Bond (BAB).
Under MN Statutes 429, a minimum of 20% of the issue must have special assessments as part
of the revenue stream with which to retire the debt. This example assumes that special
assessments will make up 40% of the revenue stream.
Under MN Statutes 475, Street Reconstruction Bonds would be issued. Street .Reconstruction
Bonds do not require special assessments to be collected at any level. The attached scenario has
zero special assessments being collected, with all revenues coming from annual tax levies:
A comparison of the above-mentioned examples can be made (with and without special
assessment revenues) in the Tax Impact Analysis on page 2 of each scenario.
Build America Bonds were created as part of the Federal government's recent economic
stimulus package. BAB's are issued using taxable interest rates. Though hillier than tax-
exempt interest rates, the Federal government pays 35% of the Interest component of the bond
payments. Iu most cases, this Federal subsidy brings the tax impact of a 13AB Lower than that of
atax-exempt bond issue. Page 3 of the BAB scenario illustrates the net effect of the Federal
reimbursement to the City for 35% of the hiterest payments.
Please do not hesitate to call me with any questions regarding this information. Thanks
429
CITY OF ST. JOSEPH, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS OF 2010, SERIES A
Bond Payments: ~ ;_ R+2uenu~ $.ources:~i ~ ~ . ~i : ' CeSh ~l=ltivr:
Year Est.
(12-~) Interest
Principal Rate
lnteresf Tota!
Debt
Pa meet Statutory
5.00%
Covera a
Cap. Other
lnferest Revenues Special
Assessment
Income
Tax
Lev Annual
Surplus/
Deficit
Cumulative
Balance
2010 0 0.000% 16,684 16,684 16,684 33,368 0 1,620 0 18,304 18,304
2011 45,000 2.250% 33,368 78,368 82,286 0 41,057 32,000 -9,229 9,075
2012 45,000 2.650% 32,355 77,355 81,223 0 39,763 35,000 -6,460 2,615
2013 45,000 3.000% 31,163 76,163 79,971 0 38,469 40,000 -1,501 1,114
2014 45,000 3.300% 29,813 74,813 78,553 0 37,176 45,000 3,622 4,736
2015 45,000 3.550% 28,328 73,328 76,994 0 35,879 45,000 3,886 8,622
2016 50,000 3.800% 26,730 76,730 80,567 0 34,583 45,000 -983 7,638
2017 50,000 4.050% 24,830 74,830 78,572 0 33,287 45,000 -285 7,354
2018 50,000 4.250% 22,805 72,805 76,445 0 31,991 45,000 545 7,899
2019 55,000 4.400% 20,680 75,680 79,464 0 30,694 45,000 -3,770 4,130
2020 55,000 4.550% 18,260 73,260 76,923 0 29,401 50,000 2,478 6,607
2021 60,000 4.650% 15,758 75,758 79,545 0 28,104 50,000 -1,441 5,167
2022 60,000 4.750% 12,968 72,968 76,616 0 26,808 50,000 192 5,359
2023 65,000 4.850% 10,118 75,118 78,873 0 25,512 50,000 -3,361 1,997
2024 70,000 4.950% 6,965 76,965 80,813 0 24,218 55,000 -1,595 402
2025 70,000 5.000% 3,500 73,500 77,175 0 22,922 55,000 747 1,149
810,000 334,321 1,144,321 1,200,703 33,368
ARplcati0ll:df Funds
Est. 2010 Street Project (A) 747,000
Less: City Cash Contribution 0
Total Hard Costs 747,000
Add: Issuance Expenses
Est. Underwriter's Discount Q1.96% 15,876
Est. Capitalized Interest (12 Months) 33,368
Est. Financial Advisory Fee 0
Est. Misc. 0
Est. Bond Counsel Fee 5,000
Est. Rating Fee 5,600
Est. County Auditor/O.S. Printing 250
Est. Registrar/Paying Agent Fee 7,125
Total 814,219
Less: lnvesfinent Income -4,315
Rounded For Issuance 810,000
Bond In~ormatroiti:
Bonds Dated: 6/112010
Bonds Mature: 1211/11 Through 12/1/25
Interest Payments: 12/1110 8~ Each 611 8 121 1 Thereafter
Call Option: Callable 12/1/2018 @ Pa r
Registrar/Pay Agent: Northland Trust Services
Purchase Price: $794,124
Est. Average Coupon: _4.4996%_
Est. Net Effective Rate: 4.7133%
Est. Bond Sale Date: Late May, 2010.
Est. Bond Closing Date: Early June, 2010.
Bond Counsel: Briggs & Morgan
0 481,485 687,000 ~ 1,149
2d'If! ~t'r.~et ~Protn~GA)
Est. Watermain Costs 155,000
Est. Sanitary Sewer Costs 192,000
Est. Street Costs 400,000
Includes Engineering Fees
And Contingencies
Total Improvement Costs: 747,000
Ass IesSti~~rht.I»oame;
Est. Amount of Assessments: $324,000
Percentage of issue Assessed: 40.00%
n eres ate on Assessmen s: 6.00%
First Installment Collection: 2011
Number of Annual Installments: 15
Start Date of Assessments: 11/30/2010
Monte Eastvold, V.P., Northland Securities, Inc. Dated: 11/3/2009
429
ASSESSMENT INCOME
Sfreet .
Assessments: Assessments
Estimated Estimated
Assessment Interest Assessment Assessment Interest Assessment
Year Princi a! 6.00% Income Principal 0.00% Income
2010 0 1,620 1,620 0 0 0
2011 21,600.00 19,440 41,040 0.00 0 0
2012 21,600.00 18,144 39,744 0.00 0 0
2013 21,600.00 16,848 38,448 0.00 0 0
2014 21,600.00 15,552 37,152 0.00 0 0
2015 21,600.00 14,256 35,856 0.00 0 0
2016 21,600.00 12,960 34,560 0.00 0 0
2017 21,600.00 11,664 33,264 0.00 0 0
2018 21,600.00 10,368 31,968 0.00 0 0
2019 21,600.00 9,072 30,672 0.00 0 0
2020 21,600.00 7,776 29,376 0.00 0 0
2021 21,600.00 6,480 28,080 0.00 0 0
2022 21,600.00 5,184 26,784 0.00 0 0
2023 21,600.00 3,888 25,488 0.00 0 0
2024 21,600.00 2,592 24,192 0.00 0 0
2025 21,600.00 1,296 22,896 0.00 0 0
324,000.00 157,140 481,140 ~ 0.00 0 0
`Fax Impa~t;Anaiysis:
Annual Tax Residential Market Value
Est. Tax Capacity Capacity $100,000 $150,000 $200,000
Tax Value Incr. Rate Net Tax Capacity
Year Lev 1.00• Increase $1,000 $1,500 $2,000
2010 0 3,664,663
2011 32,000 3,701,310 0.86% 8.65 12.97 17.29
2012 35,000 3,738,323 0.94% 9.36 14.04 18.72
2013 40,000 3,775,706 1.06% 10.59 15.89 21.19
2014 45,000 3,813,463 1.18% 11.80 17.70 23.60
2015 45,000 3,851,598 1.17% 11.68 17.53 23.37
2016 45,000 3,890,114 1.16% 11.57 17.35 23.14
2017 45,000 3,929,015 1.15% 11.45 17.18 22.91
2018 45,000 3,968,305 1.13% 11.34 17.01 22.68
2019 45,000 4,007,988 1.12% 11.23 16.84 22.46
2020 50,000 4,048,068 1.24% 12.35 18.53 24.70
2021 50,000 4,088,549 1.22% 12.23 18.34 24.46
2022 50, 000 4,129,434 1.21 % i 2.11 18.16 24.22
2023 50,000 4,170,728 1.20% 11.99 17.98 23.98
2024 55,000 4,212,436 1.31% 13.06 19.58 26.11
2025 55,000 4,254,560 1.29% 12.93 19.39 25.85
687,000 Average Annual Incr: $11.49 $17.23 $22.98 ~--
Average Monthly Incr: $0.96 $1.44 $1.91
Monte Eastvold, V.P., Northland Securities, Inc. Dated: 11/3/2009
475
CITY OF ST. JOSEPH, MINNESOTA
GENERAL OBLIGATION STREET RECONSTRUCTION BONDS OF 2010, SERIES A
Bohd Payments:: - '~, i.. Reu~nue Sources; ~' 'Gash:~lbw..:
Est. Total Statutory Special Annual
(12-1) Interest Debt 5.00% Cap. Other Assessment Tax Surplus/ Cumulative
Year Principal Rate Interest Pa merit Covera a Interest Revenues Income Lev Delicit Balance
2010 0 0.000% 16,684 16,684 16,684 33,368 0 0 0 16,684 16,684
2011 45,000 2.250% 33,368 78,368 82,286 0 0 76,000 -6,286 10,398
2012 45,000 2.650% 32,355 77,355 81,223 0 0 77,000 -4,223 6,175
2013 45,000 3.000% 31,163 76,163 79,971 0 0 78,000 -1,971 4,205
2014 45,000 3.300% 29,813 74,613 78,553 0 0 78,000 -553 3,651
2015 45,000 3.550% 28,328 73,328 76,994 0 0 78,000 1,006 4,658
2016 50,000 3.800% 26,730 76,730 80,567 0 0 78,000 -2,567 2,091
2017 50,000 4.050% 24,830 74,830 78,572 0 0 78,000 -572 1,520
2018 50,000 4.250% 22,805 72,805 76,445 0 0 76,000 1,555 3,074
2019 55,000 4.400% 20,680 75,680 79,464 0 0 78,000 -1,464 1,610
2020 55,000 4.550% 18,260 73,260 76,923 0 0 78,000 1,077 2,687
2021 60,000 4.650% 15,758 75,758 79,545 0 0 78,000 -1,545 1,142
2022 60,000 4.750% 12,968 72,968 76,616 0 0 78,000 1,384 2,526
2023 65,000 4.850% 10,118 75,118 78,873 0 0 79,000 127 2,653
2024 70,000 4.950% 6,965 76,965 80,813 0 0 79,000 -1,813 839
2025 70,000 5.000% 3,500 73,500 77,175 0 0 79,000 1,825 2,664
810,000 334,321 1,144,321 1,200,703 33,368 0 0 1, 170,000 2,664
A{plcatidriOfiFurids 20'#~$treat:Pro~ect:;:{A)'
Est. 2010 Street Project {A) 747,000 Est. Watermain Costs 155,000
Less: City Cash Contribution 0 Est. Sanitary Sewer Costs 192,000
Total Hard Costs 747,000 Est. Street Costs 400,000
Add: Issuance Expenses Includes Engineering Fees
Est. Underwriter's Discount @1.96% 15,876 And Contingencies
Est. Capitalized Interest (12 Months) 33,368
Est. Financial Advisory Fee p
Est. Misc. 0
Est. Bond Counsel Fee 5,000
Est. Rating Fee 5,600
Est. County Auditor/O.S. Printing 250
Est. Registrar/Paying Agent Fee 7,125 Total Improvement Costs: 747,000
Total 814,219
Less: Investment Income -4,315
Rounded For Issuance 810,000
Bonc# Irif~tmataon;~ Assessm~r~t
`.incdme`.
Bonds Dated: 6/1/2010 .
Bonds Mature: 12/1/11 Through 12/1/25 Est. Amount of Assessments: $0
Interest Payments: 12/1/10 S~ Each 6/1 ~ 12/1 Thereafter Percentage of Issue Assessed: 0.00%
Call Option: Callable 12/1/2018 @ Par Interest Rate on Assessmen ts: 0.00%
Registrar/Pay Agent: Northland Trust S ervices First Installment Collection: N.A.
Purchase Price: $794,124 Number of Annual Installments: 0
Est_ Average Coupon: 4.4996°o Start Date of Assessments: N.A.
Est. Net Effective Rate: 4.7133°0
Est. Bond Sale Date: Late May, 2010.
Est. Bond Closing Date: Early June, 2010.
Bond Counsel: Briggs 8~ Morgan
Monte Eastvold, V.P., Northland Securities, Inc. Dated: 11!3/2009
475
ASSESSMENT INCOME
_. Assessments
_ Assessments.
_
.
Estimated Estimated
Assessment Interest Assessment Assessment Interest Assessment
Year Princi al 0.00% Income Princi a! 0.00% Income
2010 0 0 0 0 0 0
2011 0.00 0 0 0.00 0 0
2012 0.00 0 0 0.00 0 p
2013 0.00 0 0 0.00 0 0
2014 0.00 0 0 0.00 0 0
2015 0.00 0 0 0.00 0 0
2016 0.00 0 0 0.00 0 0
2017 0.00 0 0 0.00 0 0
2018 0.00 0 0 0.00 0 0
2019 0.00 0 0 0.00 0 0
2020 0.00 0 0 0.00 0 0
2021 0.00 0 0 0.00 0 0
2022 o.oa o 0 0.00 0 0
zo23 0.00 0 0 0.00 0 0
2024 0.00 0 0 0.00 0 0
2025 0.00 0 0 0.00 0 0
0.00 0 0 ~ 0.00 0 0
fax Imp~ct:An~lysls:
Annual Tax Residential Market Value
Est. Tax Capacity Capacity $100,000 $150,000 $200,000
Tax Value Incr. Rate Net Tax Capacity
Year tev 1.00% Increase $1,000 $1,500 $2,000
2010 0 3,664,663
2011 76,000 3,701,310 2.05% 20.53 30.80 41.07
2012 77,000 3,738,323 2.06% 20.60 30.90 41.19
2013 78,000 3,775,706 2.07% 20.66 30.99 41.32
2014 78,000 3,813,463 2.05% 20.45 30.68 40.91
2015 78,000 3,851,598 2.03% 20.25 30.38 40.50
2016 78,000 3,890,114 2.01% 20.05 30.08 40.10
2017 78,000 3,929,015 1.99% 19.85 29.78 39.70
2018 78,000 3,968,305 1.97% 19.66 29.48 39.31
2019 78,000 4,007,988 1.95% 19.46 29.19 38.92
2020 78,000 4,048,068 1.93% 19.27 28.90 38.54
2021 78,000 4,088,549 1.91% 19.08 28.62 38.16
2022 78,000 4,129,434 1.89% 18.89 28.33 37.78
2023 79,000 4,170,728 1.89% 1$.94 28.41 37.88
2024 79,000 4,212,436 1.88% 18.75 28.13 37.51
2025 79,000 4,254,560 1.86% 18.57 27.85 37.14
1,170;000 Average Annual Incr: $19.67 $29.50 $39.34 ~--
Average Monthly Incr: $1.64 $2.46 $328
Monte Eastvold, V.p., Northland Securities, Inc. Dated: 11/3/2009
BAB-B
CITY OF ST. JOSEPH, MINNESOTA
G.O. TAXABLE IMPROVEMENT BONDS OF 2010, SERIES A {BUILD AMERICA BONDS)
.Bond~ayrri~nts: ) !' Revenue S.our~es ` ~' 'Cash:Elow:
Year Est. Total
(12-1) Interest Debt
Princlpa! Rate Interest Payment Statutory
5.00%
Covera a
Cap.
Interest Special
Other Assessment
Revenues Income
Tax
Le Annua!
Surplus/
Deficit
Cumulative
Balance
2010 0 0.000% 20,449 20,449 20,449 40,898 0 0 0 20,449 20,449
2011 45,000 2.650% 40,898 85,898 90,192 0 0 84,000 -6,192 14,256
2012 45,000 3.100% 39,705 84,705 88,940 0 0 84,000 -4,940 9,316
2013 45,000 3.500% 38,310 83,310 87,476 0 0 84,000 -3,476 5,841
2014 45,000 3.900% 36,735 81,735 85,822 0 0 84,000 -1,822 4,019
2015 45,000 4.250% 34,980 79,980 83,979 0 0 84,000 21 4,040
2016 50,000 4.600% 33,06$ 83,068 87,221 0 0 84,000 -3,221 819
2017 50,000 4.900% 30,768 80,768 84,806 0 0 84,000 -806 13
2018 50,000 5.150% 28,318 78,318 82,233 0 0 84,000 1,767 1,780
2019 55,000 5.350% 25,743 80,743 84,780 0 0 84,000 -780 1,000
2020 55,000 5.500% 22,800 77,800 81,690 0 0 84,000 2,310 3,310
2021 60,000 5.650% 19,775 79,775 83,764 0 0 84,000 236 3,546
2022 60,000 5.800% 16,385 76,385 80,204 0 0 84,000 3,796 7,342
2023 70,000 5.900% 12,905 82,905 87,050 0 0 84,000 -3,050 4,292
2024 70,000 6.000% 8,775 78,775 82,714 0 0 84,000 1,286 5,578
2025 75,000 6.100% 4,575 79,575 83,554 0 0 84,000 446 6,024
820,000 414,186 ,234,186 1,294,873 40,898 0 0 1,260,000 6,024
,4ppl:irrationott; Ftr.tids 2I31tI;StreetProj~at. {A)
Est. 2010 Street Project (A) 747,000 Esl. Watermain Costs 155,000
Less: City Cash Contribution 0 Est. Sanitary Sewer Costs 192,000
Total Hard Costs 747,000 Est. Street Costs 400,000
Add: Issuance Expenses Includes Engineering Fees
Est. Underwriter's Discount @1.96% 16,072 And Contingencie s
Est. Capitalized Interest (12 Months) 40,898
Est. Financial Advisory Fee 0
Est. Misc. 0
Est. Bond Counsel Fee 5,000
Est. Rating Fee 5,600
Est. County Auditor/O.S. Printing 250
Est. Registrar/Paying Agent Fee 7,125 Total Improvement C osts: 747,000
Tota! 821,945
Less: Investment Income -4,315
Rounded For Issuance 820,000
Bond Iriformatrot
Bonds Dated: 61112010
Bonds Mature: 12/1/11 Through 12/1/25
Interest Payments: 1211110 8~ Each 61i 8~ 1211 Thereafter
Call Option: Callable 12/1/2018 @ Par
Registrar/Pay Agent: Northland Trust Services
Purchase Price: $803,928,
Est. Average Coupon: 5.4678%
st. Net Effective Rate: 5.6800%
Est. Bond Sate Date: Late May, 2010.
Est. Bond Closing Date: Early June, 2010.
Bond Counsel: Briggs 8 Morgan
Assi~SStnent nCortt~;
Est. Amount of Assessments: $0
Percentage of Issue Assessed: 0.00%
Interest Rate on Assessments: 0.00%
First Installment Collection: N.A.
Number of Annual Installments: 0
Start Date of Assessments: N.A.
Monte Eastvold, V.P., Northland Securities, Inc. Dated: 11!3/2009
BAB-B
ASSESSMENTINGOME
'St'reet ::
Assessments
Assessments
Estimated Estimated
Assessment !n(eresf Assessment Assessment Interest Assessment
Year Principal 0.00% Income Princi a! 0.00% Income
2010 0 0 0 0 0 0
2011 0.00 0 0 0.00 0 0
2012 0.00 0 0 0.00 0 0
2013 0.00 0 0 0.00 0 0
2014 0.00 0 0 0.00 0 0
2015 0.00 0 0 0.00 0 0
2016 0.00 0 0 0.00 0 0
2017 0.00 0 0 0.00 0 0
2018 0.00 0 0 0.00 0 0
2019 0.00 0 0 0.00 0 0
2020 0.00 0 0 0.00 0 0
2021 0.00 0 0 0.00 0 0
2022 0.00 0 0 0.00 0 0
2023 0.00 0 0 0.00 0 0
2024 0.00 0 0 0.00 0 0
2025 0.00 0 0 0.00 0 0
~ 0.00 0 0 ~ 0.00 0 0
..
,Tax Impact:An~C sis >:.. .; - ... .
Annual Tax Residential Market Value
Est. Tax Capacity Capacity $900,000 $950,000 $200,000
Tax Value Incr. Rate Net Tax Capacity
Year Lev 1.00% Increase $9,000 $9,500 $2,000
2010 0 3,664,663
2011 84,000 3,701,310 2.27% 22.69 34.04 45.39
2012 84,000 3,738,323 2.25% 22.47 33.70 44.94
2013 84,000 3,775,706 2.22% 22.25 33.37 44.49
2014 84,000 3,813,463 2.20% 22.03 33.04 44,05
2015 84,000 3,851,598 2.18% 21.81 32.71 43.62
2016 84,000 3,890,114 2.16% 21.59 32.39 43.19
2017 84,000 3,929,015 2.14% 21.38 32.07 42.76
2018 84,000 3,968,305 2.12% 21.17 31.75 42.34
2019 84,000 4,007,988 2.10% 20.96 31.44 41.92
2020 84,000 4,048,068 2.08% 20.75 31,13 41.50
202.1 84,000 4,088,549 2.05% 20.55 30.82 41.09
2022 84,000 4,129,434 2.03% 20.34 30.51 40.68
2023 84,000 4,170,728 2.01% 20.14 30.21 40.28
2024 84,000 4,212,436 1.99% 19.94 29.91 39.88
2025 84,000 4,254,560 1.97% 19.74 29.62 39.49
1,260,000 Average Annual Incr: $21.19 $31.78 $42.37
Average Monthly Incr: $1.77 $2.65 $3.53
Monte Eastvold, V.P., Northland Securities, Inc. Dated: 11/3/2009
BAB-B
NET TAX LEVY ANALYSIS
F~ortd:p8 meltts< Reyenue.Sou~ces: ~L'C~el'al'~telmbuYSQm~nt
Tax
Est. Total Statutory Special Less Lew After
Interest P&I Debt 5.00' Cap. Other Assessment Tax Federal Int. Federal
Year Rate Pa ment Covera a Interest Revenues Income Lev Reimbursement Reimbursement
2010 0.000% 20,449 20,449 40,898 0 0 0 0 '~~---' 0
2011 2.650% 85,898 90,192 0 0 84,000 14,314 70,000
2012 3.100% 84,705 88,940 0 0 84,000 13,897 70,000
2013 3.500% 83,310 87,476 0 0 84,000 13,409 71,000
2014 3.900% 81,735 85,822 0 0 84,000 12,857 71,000
2015 4.250% 79,980 83,979 0 0 84,000 12,243 72,000
2016 4:600% 83,06$ 87,221 0 0 84,000 11,574 72,000
2017 4.900% 80,768 84,806 0 0 84,000 10,769 73,000
2018 5.150% 78,318 82,233 0 0 84,000 9,911 74,000
2019 5.350% 80,743 84,780 0 0 84,000 9,010 75,000
2020 5.500% 77,800 81,690 0 0 84,000 7,980 76,000
2021 5.650% 79,775 83,764 0 0 84,000 6,921 77,000
2022 5.800% 76,385 80,204 0 0 84,000 5,735 78,000
2023 5.900% 82,905 87,050 0 0 84,000 4,517 79,000
2024 6.000% 78,775 82,714 0 0 84,000 3,071 81,000
2025 6.100% 79,575 83,554 0 0 84,000 1,601 83,000
1,234,186 1,294,873 40,898 0 0 1,260,000 137,808 1,122,000
,.
Net.7~x:I~npact.AnalySis,
Annuat Tax Residential Market Value
Est. Tax Capacity Capacity $100,000 $150,000 $200,000
Tax Vatue Incr. Rate Net Tax Capacity
Year Lev 1.00% Increase $1,000 $1,500 $2,000
2010 0 3,664,663
2011 70,000 3,701,310 1.89% 18.91 28.37 37.82
2012 70,000 3,738,323 1.87% 18.72 28.09 37,45
2013 71,000 3,775,706 1.88% 18.80 28.21 37.61
2014 71,000 3,813,463 1.86% 18.62 27.93 37.24
2015 72,000 3,851,598 1.87% 18.69 28.04 37.39
2016 72,000 3,890,114 1..85% 18.51 27.76 37.02
2017 73,000 3,929,015 1.86% 18.58 27.87 37.16
2018 74,000 3,968,305 1.86% 18.65 27.97 37.30
2019 75,000 4,007,988 1.87% 18.71 28.07 37.43
2020 76,000 4,048,068 1.88% 18.77 28.16 37.55
2021 77,000 4,088,549 1.88% 18.83 28.25 37.67
2022 78,000 4,129,434 1.89% 18.89 28.33 37.78
2023 79,000 4,170,728 1.89% 18.94 28.41 37.88
2024 81,000 4,212,436 1.92% 19.23 28.84 38.46
2025 83,000 4,254,560 1.95% 19.51 29.26 39.02
1,122,000 Average Ann ual Incr: $18.83 $28.24 $37.65 ~-~
Average Monthly Incr: $1.57 $2.35 $3.14
Monte Eastvold, V.P., Northland Securities, Inc. Dated: 1 1 /312 0 0 9
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