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Springsted, Inc., our finance department and the county assessor regarding the community center debt <br />questions. Note the debt capacity has changed from the April number from our 2014 CAFR. The new <br />capacity is reflected in the 2015 CAFR the Council received in June. <br /> <br /> <br /> <br />Debt capacity as of 12/31/15 - $48,399,029 <br /> <br /> <br />Debt capacity projected as of the end of 2016 – approx. $55,000,000 <br /> <br /> <br />Average home value is approx. $227,500 = approx. $234 tax increase based on $35,000,000 <br />debt (20 yr. repayment) <br /> <br /> <br />Median home value is approx. $200,000 = approx. $201 tax increase based on $35,000,000 <br />debt (20 yr. repayment) <br /> <br /> <br />Taxable market growth: <br /> 5 yr. avg. – (-3.6%) <br /> 10 yr. avg. – 1.7% <br /> 15 yr. avg. – 6.0% <br /> 20 yr. avg. – 7.1% <br /> 25 yr. avg. – 7.5% <br /> <br /> <br />Taxable market growth related to new construction – 2% - 3% <br /> <br /> <br />Repayment term is suggested to be in the 20-25 year range. <br /> <br /> <br />According to Springsted, there are many options to structure the debt that can take <br />advantage of projected growth. <br /> <br /> <br />Public Safety building debt will be retired in February of 2023, making the current levy <br />amount available to decrease the annual costs of debt for a facility. <br /> <br />The council may wish to consider anticipated facility funding costs, additional phase construction costs, <br />additional park improvements, as well as other additional revenue additions such as stated earlier to <br />determine a bonding request amount. <br /> <br />With Council direction, staff will prepare required information for Council approval at the next meeting. <br /> <br />Financial Impact <br /> <br />N/A <br /> <br />Attachments <br /> <br /> <br /> <br />July 17, 2006, Minutes Y Referendum <br /> <br />