2018-07-02 Council Work Session Packet
CITY COUNCIL WORK SESSION
AGENDA Monday, July 2, 2018
6:30 p.m.
1. Call to Order
2. Discussion of Fire Station Bond Structuring Options
—Stacie Kvilvang, Ehlers and Associates
3. Adjourn
To: Mayor and City Council
From: Mark McNeill, City Administrator
Subject: Fire Bond Funding Options
Date: July 2, 2018
COMMENT:
INTRODUCTION:
The Council will meet in a work session at 6:30 PM on Monday, July 2nd, to review options for the
structuring of the Fire Station Capital Improvements Bonds, should the project proceed.
BACKGROUND:
In May, the City Council met to review information relating to the proposed remodeling and expansion of
the City’s fire station, located at 2121 Dodd Road.
Financing options for a bond issuance were discussed. Traditionally, municipally-issued bonds have
repayment options in five year increments—i.e. 10, 15, 30 years. There are other alternatives which vary
the amounts of the principal and interest paid per year, or might delay the start of repayment. All of these
options impact the amount of interest to be paid, and therefore the cost of borrowing.
For demonstration purposes, the City is using the most conservative impacts possible—a 15 year straight
repayment. A twenty year option has also been provided. However, at the May 16th work session when
this was discussed, the Council asked about the impact of paying interest only on the bonds until 2023,
when the levy for the Par 3 bonds would otherwise be retired, and redirect that levy to the fire station
bonds.
Financial runs for those options, as well as the straight 15 and 20 year bond repayments, are attached.
The following summary is for the average $356,000 value home, and what the estimated annual impact
would be for property taxes.
City of Mendota Heights - Property Tax Scenario Estimate - Single Family Home
Home assessed at $356,000
with homestead status
Est. Annual Property Tax Increase*
Average Interest Only
Years
Amortizing Years
Scenario Full Term 2020-2023 2024 and After
1. 20 Year Term; Basic Structure $75
2. 20 Year Term; $260k Supplementary Payment $46 $37 $49
3. 20 Year Term; $160k Supplementary Payment $59 $37 $65
4. 15 Year Term; Basic Structure $91
5. 15 Year Term; $260k Supplementary Payment $69 $35 $83
6. 15 Year Term; $160k Supplementary Payment $83 $35 $103
*Average annual property tax increase from $6,125,000 bond issuance on a home assessed at $356,000 with homestead
status. For discussion purposes only. Actual annual increases will vary.
Ehlers will be in attendance to review the options shown in the attachments. They are:
A. 20 year, and 15 year Property Tax Impacts with ISD 197 Referendum Increases and other taxing
jurisdictions.
B. 15 year term, straight payback
C. 20 year term, straight payback
D. 15 year term, interest only until 2024. Then, all of Par 3 levy going to fire bonds
E. 15 year term, interest only until 2024. Then, $160,000 to fire bonds; $100,000 to other
designations.
F. 15 year term, interest only until 2024. Then, all of Par 3 levy going to fire bonds
G. 20 year term, interest only until 2024. Then, $160,000 to fire bonds; $100,000 to other
designations.
Note that the Council will not need to make a decision on the final structuring of the bonds until after the
reverse referendum time period has expired, and that the decision is made to proceed with proceeding to
design.
Mark McNeill
City Administrator
1. Basic Structure - 20 Year Term
Dakota Misc Market
Pay 2018 Proposed Potential Estimated County Pay 2018 Approved Estimated Taxes Value Taxes Estimated
Current Taxes CIP Bonds*2019 Budget Total Pay 2018 Current Taxes Referendum**Total Pay 2018 Pay 2018 Current Increase Future
Estimated Property Taxes $1,391 $75 $70 $1,535 $932 $745 $138 $883 $136 $604 $3,808 $283 $4,091
Change in %-5.4%5.0%10.4%---18.5%----7.42%
Estimated Monthly Property Tax Payment $116 $6 $6 $128 $78 $62 $12 $74 $11 $50 $317 $24 $341
2. Interest Only - 20 year term with $260 supplementary payment
Dakota Misc Market
Pay 2018 Proposed Potential Estimated County Pay 2018 Approved Estimated Taxes Value Taxes Estimated
Current Taxes CIP Bonds*2019 Budget Total Pay 2018 Current Taxes Referendum**Total Pay 2018 Pay 2018 Current Increase Future
Estimated Property Taxes $1,391 $46 $70 $1,507 $932 $745 $138 $883 $136 $604 $3,808 $254 $4,062
Change in %-3.3%5.0%8.3%---18.5%----6.67%
Estimated Monthly Property Tax Payment $116 $4 $6 $126 $78 $62 $12 $74 $11 $50 $317 $21 $339
3. Interest Only - 20 year term with $160 supplementary payment
Dakota Misc Market
Pay 2018 Proposed Potential Estimated County Pay 2018 Approved Estimated Taxes Value Taxes Estimated
Current Taxes CIP Bonds*2019 Budget Total Pay 2018 Current Taxes Referendum**Total Pay 2018 Pay 2018 Current Increase Future
Estimated Property Taxes $1,391 $59 $70 $1,520 $932 $745 $138 $883 $136 $604 $3,808 $267 $4,075
Change in %-4.3%5.0%9.3%---18.5%----7.02%
Estimated Monthly Property Tax Payment $116 $5 $6 $127 $78 $62 $12 $74 $11 $50 $317 $22 $340
Notes:
*Estimated property tax increase from $6,125,000 of CIP Bonds - Average Annual Increase over entire term
** Estimated property tax increase from recently approved school referendum for ISD NO. 197
All estimates are subject to change.
5/24/2018
Example: Home assessed at $356,000
with homestead status
City of Mendota Heights School District #ISD 197 Total Property Taxes
CITY OF MENDOTA HEIGHTS PROPERTY TAX ESTIMATE - SINGLE FAMILY HOME
Example: Home assessed at $356,000
with homestead status
City of Mendota Heights School District #ISD 197 Total Property Taxes
Example: Home assessed at $356,000
with homestead status
City of Mendota Heights School District #ISD 197 Total Property Taxes
page 4
1. Basic Structure - 15 Year Term
Dakota Misc Market
Pay 2018 Proposed Potential Estimated County Pay 2018 Approved Estimated Taxes Value Taxes Estimated
Current Taxes CIP Bonds*2019 Budget Total Pay 2018 Current Taxes Referendum**Total Pay 2018 Pay 2018 Current Increase Future
Estimated Property Taxes $1,391 $91 $70 $1,552 $932 $745 $138 $883 $136 $604 $3,808 $299 $4,107
Change in %-6.5%5.0%11.6%---18.5%----7.85%
Estimated Monthly Property Tax Payment $116 $8 $6 $129 $78 $62 $12 $74 $11 $50 $317 $25 $342
2. Interest Only - 15 year term with $260 supplementary payment
Dakota Misc Market
Pay 2018 Proposed Potential Estimated County Pay 2018 Approved Estimated Taxes Value Taxes Estimated
Current Taxes CIP Bonds*2019 Budget Total Pay 2018 Current Taxes Referendum**Total Pay 2018 Pay 2018 Current Increase Future
Estimated Property Taxes $1,391 $69 $70 $1,530 $932 $745 $138 $883 $136 $604 $3,808 $277 $4,085
Change in %-5.0%5.0%10.0%---18.5%----7.28%
Estimated Monthly Property Tax Payment $116 $6 $6 $127 $78 $62 $12 $74 $11 $50 $317 $23 $340
3. Interest Only - 15 year term with $160 supplementary payment
Dakota Misc Market
Pay 2018 Proposed Potential Estimated County Pay 2018 Approved Estimated Taxes Value Taxes Estimated
Current Taxes CIP Bonds*2019 Budget Total Pay 2018 Current Taxes Referendum**Total Pay 2018 Pay 2018 Current Increase Future
Estimated Property Taxes $1,391 $83 $70 $1,544 $932 $745 $138 $883 $136 $604 $3,808 $291 $4,099
Change in %-6.0%5.0%11.0%---18.5%----7.65%
Estimated Monthly Property Tax Payment $116 $7 $6 $129 $78 $62 $12 $74 $11 $50 $317 $24 $342
Notes:
*Estimated property tax increase from $6,125,000 of CIP Bonds - Average Annual Increase over entire term
** Estimated property tax increase from recently approved school referendum for ISD NO. 197
All estimates are subject to change.
5/24/2018
Example: Home assessed at $356,000
with homestead status
City of Mendota Heights School District #ISD 197 Total Property Taxes
Example: Home assessed at $356,000
with homestead status
City of Mendota Heights School District #ISD 197 Total Property Taxes
CITY OF MENDOTA HEIGHTS PROPERTY TAX ESTIMATE - SINGLE FAMILY HOME
Example: Home assessed at $356,000
with homestead status
School District #ISD 197City of Mendota Heights Total Property Taxes
page 5
$6,125,000
15
3.15%
Estimated Bond Rating S&P
AAA
Actual Net Tax Capacity - Payable 2018 $21,060,499
Debt Levy @ 105% - Average 544,892
Estimated Tax Capacity Rate:
Payable - 2018 Without Proposed Bonds 39.647%
Payable - 2018 With Proposed Bonds 42.234%
Estimated Tax Rate Increase 2.587%
Estimated Market Value Taxable Net Tax Current Proposed Proposed
Market Value Exclusion Market Value Capacity City Tax Tax Increase*City Tax
100,000$ 28,240$ 71,760$ 718$ 284.51$ 18.57$ 303.07$
150,000 23,740 126,260 1,263 500.58 32.67 533.25
200,000 19,240 180,760 1,808 716.66 46.77 763.43
237,200 15,892 221,308 2,213 877.42 57.26 934.68
Residential 250,000 14,740 235,260 2,353 932.74 60.87 993.60
Homestead 300,000 10,240 289,760 2,898 1,148.81 74.97 1,223.78
356,000 5,200 350,800 3,508 1,390.82 90.76 1,481.58
400,000 1,240 398,760 3,988 1,580.96 103.17 1,684.13
500,000 - 500,000 5,000 1,982.35 129.36 2,111.71
1,000,000 - 1,000,000 11,250 4,460.29 291.07 4,751.36
100,000$ -$ 100,000$ 944$ 374.10$ 24.41$ 398.51$
250,000 - 250,000 2,673 1,059.95 69.17 1,129.12
Commercial/Industrial 300,000 - 300,000 3,303 1,309.36 85.45 1,394.80
400,000 - 400,000 4,561 1,808.16 118.00 1,926.15
500,000 - 500,000 5,819 2,306.96 150.55 2,457.51
1,000,000 - 1,000,000 12,109 4,800.97 313.30 5,114.27
Apartments 250,000$ -$ 250,000$ 3,125$ 1,238.97$ 80.85$ 1,319.82$
(4 or more units)500,000 - 500,000 6,250 2,477.94 161.70 2,639.64
1,000,000 - 1,000,000 12,500 4,955.88 323.41 5,279.28
Number of Years
PROPERTY TAX INFORMATION
* The figures in the table are based on taxes for new bonded debt only, and do not include tax levies for other purposes. Tax increases shown above are gross
increases, not including the impact of the state Property Tax Refund ("Circuit Breaker") program. Many owners of homestead property will qualify for a refund,
based on their income and total property taxes. This will decrease the net tax effect of the bond issue for many property owners.
City of Mendota Heights, Minnesota
Estimated Tax Impact
May 31, 2018
Bond Issue Amount
BOND ISSUANCE INFORMATION
TAX IMPACT ANALYSIS
Average Interest Rate
Type of Property
15 Years
Prepared by Ehlers 5/31/2018
page 6
Mendota Heights, Minnesota
$6,125,000 General Obligation CIP Bonds, Series 2018
Assumes Current Market BQ AAA Rates plus 25bps
15 Years
Debt Service Schedule
Date Principal Coupon Interest Total P+I
105%
Overlevy
02/01/2019 -----
02/01/2020 285,000.00 2.200%236,223.00 521,223.00 547,284.15
02/01/2021 350,000.00 2.250%168,710.00 518,710.00 544,645.50
02/01/2022 360,000.00 2.350%160,835.00 520,835.00 546,876.75
02/01/2023 365,000.00 2.450%152,375.00 517,375.00 543,243.75
02/01/2024 375,000.00 2.550%143,432.50 518,432.50 544,354.13
02/01/2025 385,000.00 2.650%133,870.00 518,870.00 544,813.50
02/01/2026 395,000.00 2.750%123,667.50 518,667.50 544,600.88
02/01/2027 405,000.00 2.800%112,805.00 517,805.00 543,695.25
02/01/2028 420,000.00 2.900%101,465.00 521,465.00 547,538.25
02/01/2029 430,000.00 3.000%89,285.00 519,285.00 545,249.25
02/01/2030 445,000.00 3.100%76,385.00 521,385.00 547,454.25
02/01/2031 455,000.00 3.200%62,590.00 517,590.00 543,469.50
02/01/2032 470,000.00 3.250%48,030.00 518,030.00 543,931.50
02/01/2033 485,000.00 3.300%32,755.00 517,755.00 543,642.75
02/01/2034 500,000.00 3.350%16,750.00 516,750.00 542,587.50
Total $6,125,000.00 -$1,659,178.00 $7,784,178.00 $8,173,386.90
Significant Dates
Dated 9/25/2018
First Coupon Date 8/01/2019
Yield Statistics
Bond Year Dollars $54,693.75
Average Life 8.930 Years
Average Coupon 3.0335788%
Net Interest Cost (NIC)3.1455660%
True Interest Cost (TIC)3.1487419%
Bond Yield for Arbitrage Purposes 3.0164181%
All Inclusive Cost (AIC)3.2801674%
IRS Form 8038
Net Interest Cost 3.0335788%
Weighted Average Maturity 8.930 Years
Series 2018 GO CIP Bds - | SINGLE PURPOSE | 5/31/2018 | 1:10 PM
page 7
$6,125,000
20
3.37%
Estimated Bond Rating S&P
AAA
Actual Net Tax Capacity - Payable 2018 $21,060,499
Debt Levy @ 105% - Average 447,722
Estimated Tax Capacity Rate:
Payable - 2018 Without Proposed Bonds 39.647%
Payable - 2018 With Proposed Bonds 41.773%
Estimated Tax Rate Increase 2.126%
Estimated Market Value Taxable Net Tax Current Proposed Proposed
Market Value Exclusion Market Value Capacity City Tax Tax Increase*City Tax
100,000$ 28,240$ 71,760$ 718$ 284.51$ 15.26$ 299.76$
150,000 23,740 126,260 1,263 500.58 26.84 527.42
200,000 19,240 180,760 1,808 716.66 38.43 755.09
237,200 15,892 221,308 2,213 877.42 47.05 924.47
Residential 250,000 14,740 235,260 2,353 932.74 50.01 982.75
Homestead 300,000 10,240 289,760 2,898 1,148.81 61.60 1,210.41
356,000 5,200 350,800 3,508 1,390.82 74.58 1,465.39
400,000 1,240 398,760 3,988 1,580.96 84.77 1,665.74
500,000 - 500,000 5,000 1,982.35 106.29 2,088.64
1,000,000 - 1,000,000 11,250 4,460.29 239.16 4,699.45
100,000$ -$ 100,000$ 944$ 374.10$ 20.06$ 394.16$
250,000 - 250,000 2,673 1,059.95 56.84 1,116.79
Commercial/Industrial 300,000 - 300,000 3,303 1,309.36 70.21 1,379.56
400,000 - 400,000 4,561 1,808.16 96.95 1,905.11
500,000 - 500,000 5,819 2,306.96 123.70 2,430.66
1,000,000 - 1,000,000 12,109 4,800.97 257.43 5,058.40
Apartments 250,000$ -$ 250,000$ 3,125$ 1,238.97$ 66.43$ 1,305.40$
(4 or more units)500,000 - 500,000 6,250 2,477.94 132.87 2,610.81
1,000,000 - 1,000,000 12,500 4,955.88 265.74 5,221.61
City of Mendota Heights, Minnesota
Estimated Tax Impact
May 31, 2018
20 Years
BOND ISSUANCE INFORMATION
Bond Issue Amount
* The figures in the table are based on taxes for new bonded debt only, and do not include tax levies for other purposes. Tax increases shown above are gross
increases, not including the impact of the state Property Tax Refund ("Circuit Breaker") program. Many owners of homestead property will qualify for a refund,
based on their income and total property taxes. This will decrease the net tax effect of the bond issue for many property owners.
Number of Years
Average Interest Rate
PROPERTY TAX INFORMATION
TAX IMPACT ANALYSIS
Type of Property
Prepared by Ehlers 5/31/2018
page 8
Mendota Heights, Minnesota
$6,125,000 General Obligation CIP Bonds, Series 2018
Assumes Current Market BQ AAA Rates plus 25bps
20 Years
Debt Service Schedule
Date Principal Coupon Interest Total P+I
105%
Overlevy
02/01/2019 -----
02/01/2020 170,000.00 2.200%254,488.50 424,488.50 445,712.93
02/01/2021 240,000.00 2.250%184,770.00 424,770.00 446,008.50
02/01/2022 250,000.00 2.350%179,370.00 429,370.00 450,838.50
02/01/2023 255,000.00 2.450%173,495.00 428,495.00 449,919.75
02/01/2024 260,000.00 2.550%167,247.50 427,247.50 448,609.88
02/01/2025 265,000.00 2.650%160,617.50 425,617.50 446,898.38
02/01/2026 275,000.00 2.750%153,595.00 428,595.00 450,024.75
02/01/2027 280,000.00 2.800%146,032.50 426,032.50 447,334.13
02/01/2028 290,000.00 2.900%138,192.50 428,192.50 449,602.13
02/01/2029 295,000.00 3.000%129,782.50 424,782.50 446,021.63
02/01/2030 305,000.00 3.100%120,932.50 425,932.50 447,229.13
02/01/2031 315,000.00 3.200%111,477.50 426,477.50 447,801.38
02/01/2032 325,000.00 3.250%101,397.50 426,397.50 447,717.38
02/01/2033 335,000.00 3.300%90,835.00 425,835.00 447,126.75
02/01/2034 345,000.00 3.350%79,780.00 424,780.00 446,019.00
02/01/2035 360,000.00 3.450%68,222.50 428,222.50 449,633.63
02/01/2036 370,000.00 3.500%55,802.50 425,802.50 447,092.63
02/01/2037 385,000.00 3.550%42,852.50 427,852.50 449,245.13
02/01/2038 395,000.00 3.600%29,185.00 424,185.00 445,394.25
02/01/2039 410,000.00 3.650%14,965.00 424,965.00 446,213.25
Total $6,125,000.00 -$2,403,041.00 $8,528,041.00 $8,954,443.05
Significant Dates
Dated 9/25/2018
First Coupon Date 8/01/2019
Yield Statistics
Bond Year Dollars $73,088.75
Average Life 11.933 Years
Average Coupon 3.2878398%
Net Interest Cost (NIC)3.3716420%
True Interest Cost (TIC)3.3672895%
Bond Yield for Arbitrage Purposes 3.2616745%
All Inclusive Cost (AIC)3.4722127%
IRS Form 8038
Net Interest Cost 3.2878398%
Weighted Average Maturity 11.933 Years
Series 2018 GO CIP Bds - | SINGLE PURPOSE | 5/31/2018 | 1:09 PM
page 9
$6,125,000
15
3.15%
Estimated Bond Rating S&P
AAA
Actual Net Tax Capacity - Payable 2018 $21,060,499
Debt Levy @ 105% - Average 414,534
Estimated Tax Capacity Rate:
Payable - 2018 Without Proposed Bonds 39.647%
Payable - 2018 With Proposed Bonds 41.615%
Estimated Tax Rate Increase 1.968%
Estimated Market Value Taxable Net Tax Current Proposed Proposed
Market Value Exclusion Market Value Capacity City Tax Tax Increase*City Tax
100,000$ 28,240$ 71,760$ 718$ 284.51$ 14.12$ 298.63$
150,000 23,740 126,260 1,263 500.58 24.85 525.43
200,000 19,240 180,760 1,808 716.66 35.58 752.24
237,200 15,892 221,308 2,213 877.42 43.56 920.98
Residential 250,000 14,740 235,260 2,353 932.74 46.31 979.04
Homestead 300,000 10,240 289,760 2,898 1,148.81 57.03 1,205.85
356,000 5,200 350,800 3,508 1,390.82 69.05 1,459.86
400,000 1,240 398,760 3,988 1,580.96 78.49 1,659.45
500,000 - 500,000 5,000 1,982.35 98.42 2,080.77
1,000,000 - 1,000,000 11,250 4,460.29 221.43 4,681.72
100,000$ -$ 100,000$ 944$ 374.10$ 18.57$ 392.67$
250,000 - 250,000 2,673 1,059.95 52.62 1,112.58
Commercial/Industrial 300,000 - 300,000 3,303 1,309.36 65.00 1,374.36
400,000 - 400,000 4,561 1,808.16 89.77 1,897.92
500,000 - 500,000 5,819 2,306.96 114.53 2,421.49
1,000,000 - 1,000,000 12,109 4,800.97 238.35 5,039.32
Apartments 250,000$ -$ 250,000$ 3,125$ 1,238.97$ 61.51$ 1,300.48$
(4 or more units)500,000 - 500,000 6,250 2,477.94 123.02 2,600.96
1,000,000 - 1,000,000 12,500 4,955.88 246.04 5,201.91
* The figures in the table are based on taxes for new bonded debt only, and do not include tax levies for other purposes. Tax increases shown above are gross
increases, not including the impact of the state Property Tax Refund ("Circuit Breaker") program. Many owners of homestead property will qualify for a refund,
based on their income and total property taxes. This will decrease the net tax effect of the bond issue for many property owners.
Number of Years
Average Interest Rate
PROPERTY TAX INFORMATION
TAX IMPACT ANALYSIS
Type of Property
City of Mendota Heights, Minnesota
Estimated Tax Impact
May 31, 2018
15 Years - $260,000 Supplemental Payment
BOND ISSUANCE INFORMATION
Bond Issue Amount
Prepared by Ehlers 5/31/2018
page 10
Mendota Heights, Minnesota
$6,125,000 General Obligation CIP Bonds, Series 2018
Assumes Current Market BQ AAA Rates plus 25bps
15 Years - $260K Supplemental Payment
Debt Service Schedule
Date Principal Coupon Interest Total P+I 105% of Total
Supplemental
Payment Levy/ (Surplus)
02/01/2019 -------
02/01/2020 --245,602.13 245,602.13 257,882.24 -257,882.24
02/01/2021 --181,927.50 181,927.50 191,023.88 -191,023.88
02/01/2022 --181,927.50 181,927.50 191,023.88 -191,023.88
02/01/2023 --181,927.50 181,927.50 191,023.88 -191,023.88
02/01/2024 540,000.00 2.550%181,927.50 721,927.50 758,023.88 260,000.00 498,023.88
02/01/2025 555,000.00 2.650%168,157.50 723,157.50 759,315.38 260,000.00 499,315.38
02/01/2026 565,000.00 2.750%153,450.00 718,450.00 754,372.50 260,000.00 494,372.50
02/01/2027 585,000.00 2.800%137,912.50 722,912.50 759,058.13 260,000.00 499,058.13
02/01/2028 600,000.00 2.900%121,532.50 721,532.50 757,609.13 260,000.00 497,609.13
02/01/2029 615,000.00 3.000%104,132.50 719,132.50 755,089.13 260,000.00 495,089.13
02/01/2030 635,000.00 3.100%85,682.50 720,682.50 756,716.63 260,000.00 496,716.63
02/01/2031 655,000.00 3.200%65,997.50 720,997.50 757,047.38 260,000.00 497,047.38
02/01/2032 675,000.00 3.250%45,037.50 720,037.50 756,039.38 260,000.00 496,039.38
02/01/2033 700,000.00 3.300%23,100.00 723,100.00 759,255.00 260,000.00 499,255.00
Total $6,125,000.00 -$1,878,314.63 $8,003,314.63 $8,403,480.36 $2,600,000.00 $5,803,480.36
Significant Dates
Dated 9/25/2018
First Coupon Date 8/01/2019
Yield Statistics
Bond Year Dollars $61,778.75
Average Life 10.086 Years
Average Coupon 3.0403895%
Net Interest Cost (NIC)3.1395336%
True Interest Cost (TIC)3.1472713%
Bond Yield for Arbitrage Purposes 3.0298994%
All Inclusive Cost (AIC)3.2636688%
Series 2018 GO CIP Bds - | SINGLE PURPOSE | 5/31/2018 | 1:18 PM
page 11
$6,125,000
15
3.15%
Estimated Bond Rating S&P
AAA
Actual Net Tax Capacity - Payable 2018 $21,060,499
Debt Levy @ 105% - Average 499,305
Estimated Tax Capacity Rate:
Payable - 2018 Without Proposed Bonds 39.647%
Payable - 2018 With Proposed Bonds 42.018%
Estimated Tax Rate Increase 2.371%
Estimated Market Value Taxable Net Tax Current Proposed Proposed
Market Value Exclusion Market Value Capacity City Tax Tax Increase*City Tax
100,000$ 28,240$ 71,760$ 718$ 284.51$ 17.01$ 301.52$
150,000 23,740 126,260 1,263 500.58 29.93 530.52
200,000 19,240 180,760 1,808 716.66 42.85 759.51
237,200 15,892 221,308 2,213 877.42 52.47 929.89
Residential 250,000 14,740 235,260 2,353 932.74 55.78 988.51
Homestead 300,000 10,240 289,760 2,898 1,148.81 68.70 1,217.51
356,000 5,200 350,800 3,508 1,390.82 83.17 1,473.98
400,000 1,240 398,760 3,988 1,580.96 94.54 1,675.50
500,000 - 500,000 5,000 1,982.35 118.54 2,100.89
1,000,000 - 1,000,000 11,250 4,460.29 266.72 4,727.00
100,000$ -$ 100,000$ 944$ 374.10$ 22.37$ 396.47$
250,000 - 250,000 2,673 1,059.95 63.38 1,123.34
Commercial/Industrial 300,000 - 300,000 3,303 1,309.36 78.30 1,387.65
400,000 - 400,000 4,561 1,808.16 108.12 1,916.28
500,000 - 500,000 5,819 2,306.96 137.95 2,444.91
1,000,000 - 1,000,000 12,109 4,800.97 287.09 5,088.06
Apartments 250,000$ -$ 250,000$ 3,125$ 1,238.97$ 74.09$ 1,313.06$
(4 or more units)500,000 - 500,000 6,250 2,477.94 148.18 2,626.11
1,000,000 - 1,000,000 12,500 4,955.88 296.35 5,252.23
* The figures in the table are based on taxes for new bonded debt only, and do not include tax levies for other purposes. Tax increases shown above are gross
increases, not including the impact of the state Property Tax Refund ("Circuit Breaker") program. Many owners of homestead property will qualify for a refund,
based on their income and total property taxes. This will decrease the net tax effect of the bond issue for many property owners.
Number of Years
Average Interest Rate
PROPERTY TAX INFORMATION
TAX IMPACT ANALYSIS
Type of Property
City of Mendota Heights, Minnesota
Estimated Tax Impact
May 31, 2018
15 Years - $160,000 Supplemental Payment
BOND ISSUANCE INFORMATION
Bond Issue Amount
Prepared by Ehlers 5/31/2018
page 12
Mendota Heights, Minnesota
$6,125,000 General Obligation CIP Bonds, Series 2018
Assumes Current Market BQ AAA Rates plus 25bps
15 Years - $160K Supplemental Payment
Debt Service Schedule
Date Principal Coupon Interest Total P+I 105% of Total
Supplemental
Payment Levy/ (Surplus)
02/01/2019 -------
02/01/2020 --246,452.63 246,452.63 258,775.26 -258,775.26
02/01/2021 --182,557.50 182,557.50 191,685.38 -191,685.38
02/01/2022 --182,557.50 182,557.50 191,685.38 -191,685.38
02/01/2023 --182,557.50 182,557.50 191,685.38 -191,685.38
02/01/2024 405,000.00 2.550%182,557.50 587,557.50 616,935.38 -616,935.38
02/01/2025 565,000.00 2.650%172,230.00 737,230.00 774,091.50 160,000.00 614,091.50
02/01/2026 580,000.00 2.750%157,257.50 737,257.50 774,120.38 160,000.00 614,120.38
02/01/2027 600,000.00 2.800%141,307.50 741,307.50 778,372.88 160,000.00 618,372.88
02/01/2028 615,000.00 2.900%124,507.50 739,507.50 776,482.88 160,000.00 616,482.88
02/01/2029 630,000.00 3.000%106,672.50 736,672.50 773,506.13 160,000.00 613,506.13
02/01/2030 650,000.00 3.100%87,772.50 737,772.50 774,661.13 160,000.00 614,661.13
02/01/2031 670,000.00 3.200%67,622.50 737,622.50 774,503.63 160,000.00 614,503.63
02/01/2032 695,000.00 3.250%46,182.50 741,182.50 778,241.63 160,000.00 618,241.63
02/01/2033 715,000.00 3.300%23,595.00 738,595.00 775,524.75 160,000.00 615,524.75
Total $6,125,000.00 -$1,903,830.13 $8,028,830.13 $8,430,271.64 $1,440,000.00 $6,990,271.64
Significant Dates
Dated 9/25/2018
First Coupon Date 8/01/2019
Yield Statistics
Bond Year Dollars $62,488.75
Average Life 10.202 Years
Average Coupon 3.0466766%
Net Interest Cost (NIC)3.1446943%
True Interest Cost (TIC)3.1527924%
Bond Yield for Arbitrage Purposes 3.0365780%
All Inclusive Cost (AIC)3.2680369%
Series 2018 GO CIP Bds - | SINGLE PURPOSE | 5/31/2018 | 1:19 PM
page 13
$6,125,000
20
3.36%
Estimated Bond Rating S&P
AAA
Actual Net Tax Capacity - Payable 2018 $21,060,499
Debt Levy @ 105% - Average 276,666
Estimated Tax Capacity Rate:
Payable - 2018 Without Proposed Bonds 39.647%
Payable - 2018 With Proposed Bonds 40.961%
Estimated Tax Rate Increase 1.314%
Estimated Market Value Taxable Net Tax Current Proposed Proposed
Market Value Exclusion Market Value Capacity City Tax Tax Increase*City Tax
100,000$ 28,240$ 71,760$ 718$ 284.51$ 9.43$ 293.93$
150,000 23,740 126,260 1,263 500.58 16.59 517.17
200,000 19,240 180,760 1,808 716.66 23.75 740.41
237,200 15,892 221,308 2,213 877.42 29.07 906.49
Residential 250,000 14,740 235,260 2,353 932.74 30.91 963.64
Homestead 300,000 10,240 289,760 2,898 1,148.81 38.06 1,186.88
356,000 5,200 350,800 3,508 1,390.82 46.08 1,436.90
400,000 1,240 398,760 3,988 1,580.96 52.38 1,633.35
500,000 - 500,000 5,000 1,982.35 65.68 2,048.03
1,000,000 - 1,000,000 11,250 4,460.29 147.79 4,608.08
100,000$ -$ 100,000$ 944$ 374.10$ 12.40$ 386.50$
250,000 - 250,000 2,673 1,059.95 35.12 1,095.08
Commercial/Industrial 300,000 - 300,000 3,303 1,309.36 43.38 1,352.74
400,000 - 400,000 4,561 1,808.16 59.91 1,868.07
500,000 - 500,000 5,819 2,306.96 76.44 2,383.40
1,000,000 - 1,000,000 12,109 4,800.97 159.08 4,960.05
Apartments 250,000$ -$ 250,000$ 3,125$ 1,238.97$ 41.05$ 1,280.02$
(4 or more units)500,000 - 500,000 6,250 2,477.94 82.10 2,560.04
1,000,000 - 1,000,000 12,500 4,955.88 164.21 5,120.08
Number of Years
PROPERTY TAX INFORMATION
* The figures in the table are based on taxes for new bonded debt only, and do not include tax levies for other purposes. Tax increases shown above are gross
increases, not including the impact of the state Property Tax Refund ("Circuit Breaker") program. Many owners of homestead property will qualify for a refund,
based on their income and total property taxes. This will decrease the net tax effect of the bond issue for many property owners.
City of Mendota Heights, Minnesota
Estimated Tax Impact
May 31, 2018
Bond Issue Amount
BOND ISSUANCE INFORMATION
TAX IMPACT ANALYSIS
Average Interest Rate
Type of Property
20 Years - $260,000 Supplemental Payment
Prepared by Ehlers 5/31/2018
page 14
Mendota Heights, Minnesota
$6,125,000 General Obligation CIP Bonds, Series 2018
Assumes Current Market BQ AAA Rates plus 25bps
20 Years - $260K Supplemental Payment
Debt Service Schedule
Date Principal Coupon Interest Total P+I 105% of Total
Supplemental
Payment Levy/ (Surplus)
02/01/2019 -------
02/01/2020 --262,338.75 262,338.75 275,455.69 -275,455.69
02/01/2021 --194,325.00 194,325.00 204,041.25 -204,041.25
02/01/2022 --194,325.00 194,325.00 204,041.25 -204,041.25
02/01/2023 --194,325.00 194,325.00 204,041.25 -204,041.25
02/01/2024 330,000.00 2.550%194,325.00 524,325.00 550,541.25 260,000.00 290,541.25
02/01/2025 340,000.00 2.650%185,910.00 525,910.00 552,205.50 260,000.00 292,205.50
02/01/2026 350,000.00 2.750%176,900.00 526,900.00 553,245.00 260,000.00 293,245.00
02/01/2027 355,000.00 2.800%167,275.00 522,275.00 548,388.75 260,000.00 288,388.75
02/01/2028 370,000.00 2.900%157,335.00 527,335.00 553,701.75 260,000.00 293,701.75
02/01/2029 380,000.00 3.000%146,605.00 526,605.00 552,935.25 260,000.00 292,935.25
02/01/2030 390,000.00 3.100%135,205.00 525,205.00 551,465.25 260,000.00 291,465.25
02/01/2031 400,000.00 3.200%123,115.00 523,115.00 549,270.75 260,000.00 289,270.75
02/01/2032 415,000.00 3.250%110,315.00 525,315.00 551,580.75 260,000.00 291,580.75
02/01/2033 430,000.00 3.300%96,827.50 526,827.50 553,168.88 260,000.00 293,168.88
02/01/2034 440,000.00 3.350%82,637.50 522,637.50 548,769.38 260,000.00 288,769.38
02/01/2035 455,000.00 3.450%67,897.50 522,897.50 549,042.38 260,000.00 289,042.38
02/01/2036 475,000.00 3.500%52,200.00 527,200.00 553,560.00 260,000.00 293,560.00
02/01/2037 490,000.00 3.550%35,575.00 525,575.00 551,853.75 260,000.00 291,853.75
02/01/2038 505,000.00 3.600%18,180.00 523,180.00 549,339.00 260,000.00 289,339.00
Total $6,125,000.00 -$2,595,616.25 $8,720,616.25 $9,156,647.06 $3,900,000.00 $5,256,647.06
Significant Dates
Dated 9/25/2018
First Coupon Date 8/01/2019
Yield Statistics
Bond Year Dollars $79,128.75
Average Life 12.919 Years
Average Coupon 3.2802442%
Net Interest Cost (NIC)3.3576497%
True Interest Cost (TIC)3.3590122%
Bond Yield for Arbitrage Purposes 3.2615973%
All Inclusive Cost (AIC)3.4556729%
Series 2018 GO CIP Bds - | SINGLE PURPOSE | 5/31/2018 | 1:16 PM
page 15
$6,125,000
20
3.36%
Estimated Bond Rating S&P
AAA
Actual Net Tax Capacity - Payable 2018 $21,060,499
Debt Levy @ 105% - Average 355,613
Estimated Tax Capacity Rate:
Payable - 2018 Without Proposed Bonds 39.647%
Payable - 2018 With Proposed Bonds 41.336%
Estimated Tax Rate Increase 1.689%
Estimated Market Value Taxable Net Tax Current Proposed Proposed
Market Value Exclusion Market Value Capacity City Tax Tax Increase*City Tax
100,000$ 28,240$ 71,760$ 718$ 284.51$ 12.12$ 296.62$
150,000 23,740 126,260 1,263 500.58 21.32 521.90
200,000 19,240 180,760 1,808 716.66 30.52 747.18
237,200 15,892 221,308 2,213 877.42 37.37 914.79
Residential 250,000 14,740 235,260 2,353 932.74 39.72 972.46
Homestead 300,000 10,240 289,760 2,898 1,148.81 48.93 1,197.74
356,000 5,200 350,800 3,508 1,390.82 59.23 1,450.05
400,000 1,240 398,760 3,988 1,580.96 67.33 1,648.30
500,000 - 500,000 5,000 1,982.35 84.43 2,066.78
1,000,000 - 1,000,000 11,250 4,460.29 189.96 4,650.25
100,000$ -$ 100,000$ 944$ 374.10$ 15.93$ 390.03$
250,000 - 250,000 2,673 1,059.95 45.14 1,105.10
Commercial/Industrial 300,000 - 300,000 3,303 1,309.36 55.76 1,365.12
400,000 - 400,000 4,561 1,808.16 77.01 1,885.17
500,000 - 500,000 5,819 2,306.96 98.25 2,405.21
1,000,000 - 1,000,000 12,109 4,800.97 204.47 5,005.44
Apartments 250,000$ -$ 250,000$ 3,125$ 1,238.97$ 52.77$ 1,291.74$
(4 or more units)500,000 - 500,000 6,250 2,477.94 105.53 2,583.47
1,000,000 - 1,000,000 12,500 4,955.88 211.07 5,166.94
City of Mendota Heights, Minnesota
Estimated Tax Impact
May 31, 2018
20 Years - $160,000 Supplemental Payment
BOND ISSUANCE INFORMATION
Bond Issue Amount
* The figures in the table are based on taxes for new bonded debt only, and do not include tax levies for other purposes. Tax increases shown above are gross
increases, not including the impact of the state Property Tax Refund ("Circuit Breaker") program. Many owners of homestead property will qualify for a refund,
based on their income and total property taxes. This will decrease the net tax effect of the bond issue for many property owners.
Number of Years
Average Interest Rate
PROPERTY TAX INFORMATION
TAX IMPACT ANALYSIS
Type of Property
Prepared by Ehlers 5/31/2018
page 16
Mendota Heights, Minnesota
$6,125,000 General Obligation CIP Bonds, Series 2018
Assumes Current Market BQ AAA Rates plus 25bps
20 Years - $160K Supplemental Payment
Debt Service Schedule
Date Principal Coupon Interest Total P+I 105% of Total
Supplemental
Payment Levy/ (Surplus)
02/01/2019 -------
02/01/2020 --262,338.75 262,338.75 275,455.69 -275,455.69
02/01/2021 --194,325.00 194,325.00 204,041.25 -204,041.25
02/01/2022 --194,325.00 194,325.00 204,041.25 -204,041.25
02/01/2023 --194,325.00 194,325.00 204,041.25 -204,041.25
02/01/2024 330,000.00 2.550%194,325.00 524,325.00 550,541.25 160,000.00 390,541.25
02/01/2025 340,000.00 2.650%185,910.00 525,910.00 552,205.50 160,000.00 392,205.50
02/01/2026 350,000.00 2.750%176,900.00 526,900.00 553,245.00 160,000.00 393,245.00
02/01/2027 355,000.00 2.800%167,275.00 522,275.00 548,388.75 160,000.00 388,388.75
02/01/2028 370,000.00 2.900%157,335.00 527,335.00 553,701.75 160,000.00 393,701.75
02/01/2029 380,000.00 3.000%146,605.00 526,605.00 552,935.25 160,000.00 392,935.25
02/01/2030 390,000.00 3.100%135,205.00 525,205.00 551,465.25 160,000.00 391,465.25
02/01/2031 400,000.00 3.200%123,115.00 523,115.00 549,270.75 160,000.00 389,270.75
02/01/2032 415,000.00 3.250%110,315.00 525,315.00 551,580.75 160,000.00 391,580.75
02/01/2033 430,000.00 3.300%96,827.50 526,827.50 553,168.88 160,000.00 393,168.88
02/01/2034 440,000.00 3.350%82,637.50 522,637.50 548,769.38 160,000.00 388,769.38
02/01/2035 455,000.00 3.450%67,897.50 522,897.50 549,042.38 160,000.00 389,042.38
02/01/2036 475,000.00 3.500%52,200.00 527,200.00 553,560.00 160,000.00 393,560.00
02/01/2037 490,000.00 3.550%35,575.00 525,575.00 551,853.75 160,000.00 391,853.75
02/01/2038 505,000.00 3.600%18,180.00 523,180.00 549,339.00 160,000.00 389,339.00
Total $6,125,000.00 -$2,595,616.25 $8,720,616.25 $9,156,647.06 $2,400,000.00 $6,756,647.06
Significant Dates
Dated 9/25/2018
First Coupon Date 8/01/2019
Yield Statistics
Bond Year Dollars $79,128.75
Average Life 12.919 Years
Average Coupon 3.2802442%
Net Interest Cost (NIC)3.3576497%
True Interest Cost (TIC)3.3590122%
Bond Yield for Arbitrage Purposes 3.2615973%
All Inclusive Cost (AIC)3.4556729%
Series 2018 GO CIP Bds - | SINGLE PURPOSE | 5/31/2018 | 1:16 PM
page 17