04-822Council File # D y- Sa-a
Green Sheet # J ��<<° � O
Presented By
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA f �
n �
Refened To � � Committee: Date:
1 W��AS, the Mayor and City Council have placed a high priority on managing Saint Paul's overlapping
2 general obligation debt in a responsible manner while providing for future capital improvements; and
4 WHEEREAS, the City of Saint Paul, the Saint Paul Public School District, the Saint Paul Port Authority and
5 Ramsey County have agreed to work together to: coordinate general obligation financing of the area's capital
6 needs, keep such financing within agreed upon debt level targets, jointiy plan for meering capital needs of each
7 jurisdiction and monitor associated impacts on property t�es in Saint Paul; and
9 WHEREAS, the Joint Debt Advisory Committee, an ad hoc group of elected official and professional staff from
10 the City of Saint Paul, the Saint Paul Public School District, the Saint Paul Port Authority and Ramsey County
11 has been active since 1977, and
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13 WxE�AS, the professional staff inembers of the Joint Debt Advisory Committee from the City of Saint Paul,
14 Ramsey County, Saint Paul Public School District, and the Saint Paul Port Authority have met numerous times
15 over the past several months to evaluate and report on the current and future debt conditions within the City of
16 Saint Paul; and
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18 WHEREAS, the attached "2003 General Obligation Debt Overlapping on the Saint Paul Tax Base" report was
19 presented to the Joint Property Tas Advisory Committee on Mazch 22, 2004 and Apri126, 2004 ; and
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21 W��AS, this report serves as an important tool in the effort to proactively manage the overlapping general
22 obligation debt on the Saint Paul tas base and also contributes to the City's high credit ratings;
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NOw, TT�REFORE, BE IT RESOLVED, that the City of Council hereby approves the attached "2003 General
Obligation Debt Overlapping on the Saint Paul Tax Base" report and its recommendations.
Yeas Nays Absent
Benanav �
Bostrom �
Helgen �
Harris �/
Lantry ,/
Montgomery �
Thune �
A�]nnteA hv f nnnril•
narP /l..�,..1 �� aan_�
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Reques by Office of Financial Services
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By:�o��
Approved by Financial Services
BY: �cf�
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Form Approved by City Attorney
. > l � � ' /
2004
General Obligation
Debt Overlapping
on the Saint Pau� �'� Ba��
Debt Reported t�iroug�i Zf1�13
and Projected through 2008
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Acl�owledgments
Joint Property Tag Advisory Committee
City of Saint Paul
Mayor Randy Kelly
Deputy Mayor Dennis Flaherty
Councilmember 7ay Benanav
Councilmember Pat Harris
Ramsey Connty
David Twa, County Manager
Commissioner Susan Haigh
Commissioner Rafael Ortega
Commissioner Janice Rettman
Saint Paul Pnblic Schools
Dr. Pahicia Harvey, Superintendent
7ohn Broderick, School Board Member
A1 Oertwig, School Board Member
Neal Thao, School Board Member
Professional Staff
City of Saint Paul
Matt Smith, Director, Office of Financial Services
Todd Hurley,'Debt Manager
Barbaza Maynazd, Treasurer
Lynn Moser, Cash Manager
Lauri Woolstencroft, Secretary
Ramsey County
Julie Kleinschmidt, D'uector, Budgeting and Accounting
Richazd Koop, Investment/Debt Manager
Saint Paul Pnblic Schools
Lois Rockney, Execurive D'uector, Business and Fmancial Af�'airs
Larry Shomion, Chief Accountant
Saint Paul Port Authority
Laurie Hansen, Chief Financial Officer
Financial Advisor
Springsted, Incorporated
Brenda Krueger, Vice President
David MacGillivray, Principal
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Tabie of Contents
Page
Acknowledgments ............................................ Inside Front Cover
Table of Contents
Eaecutive ...........................................................1
Mission Statement ..........................................................1
Strategies .................................................................1
HistoricalReport Results .....................................................2
2003 Report Recommendations ................................................3
Methodology ..............................................................4
Overview of Debt Issuance and the Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
The Role of Debt ...........................................................7
Total Net G.O. Debt by Issuer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Overlapping G.O. Debt as Percent to Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Total Net G.O. Debt — Nominal and 1999 Constant Dollar . . . . . . . . . . . . . . . . . . . . . . . . . . 10
The Economy .............................................................il
Economic Statistics ........................................................13
Indicators ..................................................................16
Total Net G.O. Debt to Indicated Mazket Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Total Net G.O. Debt Per Capita . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Debt Service Levy Per Household . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Debt Service Levy Per Capita to Per Capita Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Tas Bill for Debt Service Tas Levies — Median Value Home in Saint Paut ............. 25
Debt Service Tas Levy to Total Taac Levy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Capital Investment Strategies and Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Ramsey County ...........................................................32
City ofSaintPaul ..........................................................34
Saint Paul Public Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . : . . . . . . . . . . . . . . . . . . . . . . 36
SaintPaulPort Authority ....................................................38
Appendia ...................................................................40
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Egecutive Summary
The Joint Debt Advisory Committee (the "JDAC") — an ad hoc group of elected officials and
professional staff of the City of Saint Paul, Independent School Dishict 625 (the "Saint Paul Public
Schools'�, Ramsey County and the Saint Paul Port Authority (the "Port Authority") — has been acrive on
a periodic basis since 1977. State legislative mandates requuing Truth in Tasation instigated these
jurisdictions to form the 7oint Property Tas Advisory Comxnittee (JPTAC) and initiate a number of
cooperative ventures to control property taYes within the corporate limits of the City of Saint Paul. The
IDAC serves as a subcommittee of the JPTAC to proacfively manage the combined debt position of the
four divisions. Their obj ective is to mitigate the costs of capital financing by coordinating their efforts as
reflected in tiieir mission statement.
Mission Statement
The City of Saint Paul, the Saint Paul Public Schools, the Saint Paul Port Authority and Ramsey County
agree to work together to: coordinate general obligation fmancing of the area's capital needs, keep such
financing within agreed upon debt level targets, jointly plan for meeting the capital needs of each
jurisdiction and monitor associated impacts on property taYes in Saint Paul.
Strategies
To achieve the goals set forth in the Mission Statement, the four jurisdictions agree to:
Maintain overlapping general obligation debt rarios within a range approved by the four jurisdictions for
the five-yeaz period of 2004 through 2008;
Notify other jurisdictions when unanticipated capital needs require that the jurisdictions confer on
recommendations for rescheduling of debt issuance plans to keep within the adopted target ranges.
Identify annually both the immediate and long range debt-related conditions of the four jurisdictions
which would impact property taxes of Saint Paul residents, and take appropriate acfion to remain
consistently within the debt levy ranges approved by the four jurisdictions; and
Exchange information and expertise during each jurisdiction's capital improvement budgeting process,
such that the jurisdicrions can eliminate duplicarion, share facilities where appropriate, and provide the
taacpayers with the greatest rehun for the jurisdictions' capital improvements.
The JDAC's prudent work to improve financial planning and regulazly publish a book to coordinate
overlapping debt has not gone unnoticed. These efforts continue to contribute to the affirn�ation of the
City and County's AAA credit rating as ranked by Standard & Poor's. In 1989, the Govemment Finance
Officers Association (GFOA) recognized the 7DAC with its Louisville Awazd for innovation in financial
management and the Awazd for Excellence for debt management. The Louisville Awazd is given rarely,
and only in recognirion of exceptional creativity in addressing public sector financial xnanagement issues.
Finally, the committee's successful efforts have also inspired other maj or public institutions to
coordinate debt.
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Indicator Summary
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Goal
• Net debt per capita shall not �ceed a range of $1,000 to
$2,500 through 2008.
• Combined debt to indicated market value not to exceed a
range of 3% to 6%.
• Net G.O. debt service levy per household not to exceed
$550.
Resnit
• Objective met. Debt pa capita values meet the target
range through 2008.
• Objectivemet.
• Objective met. Expected increase from 2004 to 2008 is
$437 to $496.
• Net G.O. debt service levy per capita to per capita income • Objective met.
notto exceed 1%.
n,�wrica� aceuur� ace>wu. c�vi
Goal
Resnk
• Net debt per capita shall not exceed a range of $1,000 to • Objective met. Debt per capita values meet the target
$2,500 through 2005. range through 2005.
• Combined debt to indicated mazket value not to exceed a • Objective met
range of 3%to 6%.
• Net G.O. debt per capita to per capita income not to
exceed a range of 3%to 6%.
• Objeclive met. The rario is expected to decrease from
5.7% in 2001 to 5.5% in 2005.
• Net G.O. debt service levy per household not to exceed
$550.
• Objec[ive met. E�cpected increase from 2001 to 2005 is
$442 to $528.
Goal
• Net debt per capita sLall not exceed $1,523 to $1,628
through 2002.
Result
• Objective met. Debt per capita values mee[ the tazget
range tluough 2002.
• Annual increase in combined debt to indicated mazket not • Objective met
to exceed 20%.
• Net G.O. debt per capita to per capita income to increase • Objective met. The ratio is expected to grow at a
at level well below wazning level of 1S%. relatively constant rate of 5.5% through 2002.
• Net G.O. debt service lery per household not to exceed a • Objecrive met. Expected increase from 1998 to 2002 is
range of $361 to $412 for 2001 and $371 to $425 for $330 to $425.
2002.
Result
Net debt per capita shal] not exceed a range of $1,450 to
$1,550.
Objective met. Debt per capita values meet the tazget
rnnge through 2000.
• Combined debt to indicated mazket value not to exceed a
range of between 4.5% and 5.5%.
Objective met. Debt to indicated market value ratios fall
wiihin the target range for the yeazs shown.
• Combined debt service property taz levies pet household • Objective met. Debt service tax levy per household values
not to exceed a range of $350 to $400. mee[ the tazget range throup,h 2000.
2003 Report Recommendations
The Subcommittee has established the following recommendations:
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• The goveming boazds of all four organizations represented on the Joint Debt Subcommittee
adopt the report as a management tool for decision making regazding capital improvements
and debt for the next five yeats.
• The City of Saint Paul, Saint Paul Public Schools and Ramsey County expand their current
efforts at collaborative planuing for joint use of current and future facilities, as well as
opportunities to transfer facilities among them as facility needs change.
• The participating jurisdictions meet every two yeazs to update tlus report and evaluate
compliance within the adopted target ranges.
• The Joint Properiy Tu� Advisory Committee (JPTAC) will review annually the proposed debt
of all four jurisdictions prior to setting the proposed levy.
• The Joint Property Taa� Advisory Comnuttee (JPTAC) will exanune the following indicators
to ensure that they stay within the recommended ranges for the term of ttus report.
Debt Position Indicators
► Debt to Market Valne
Total Net General Obligation Debt shall not exceed the range of 3% to 6% of Indicated
Market Value.
► Overall Debt Per Capita
Total Net General Obligation Debt shall not exceed a range of $1,000 to $2,500.
Ability-to-Pay Indicators
� Debt Service Levy Per Honsehold
Debt Service Levy Per Household shall not exceed $550 per household.
Debt Service Levy Per Capita to Per Capita Income
Total Net Genetal Obligation Debt Service Levy Per Capita shall not exceed 1% of Per
Capita Income.
Debt Service Levy Per Median Taxable Home Value
The Effecrive Talc Rate for Debt Service on a Median Taxable Value Home in Saint Paul
shall not exceed 0.5%.
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Methodology
This report addresses debt conditions within the corporate limits o£the City of Saint Paul. 'I'he
report covers two distinct periods: historical for the yeazs 1999 through 2003, and future for the
yeazs 2004 through 2008. These time periods permit a long-term perspective for debt trends,
occutring both within jurisdictions and combined among the jurisdictions. All figures, unless
noted otherwise, are in nominal (current) dollars.
The impacts of debt aze evaluated by a series of indicators. The Subcommittee reviewed a range
of potenrially affected areas and decided to monitor three: debt position, financial operations, and
ability to pay. Each indicator is profiled as to definition and purpose, and trend/suruivary.
Where a�ailable, a benchmazk is given.
In recognition of the fact that the City's ability to repay debt is influenced by the strength and
growth potential of its tas base, this report also includes six tables sutmnarizing economic
conditions in the Saint Paul area relevant to the repayment of debt. Unemployment, job
retenrion, median family income, sales growth, median sales price of a single-family home and
job diversity aze profiled to provide an overview of the state of the City of Saint Paul's area
economy and its tax base.
The informational sources for establishing the indicators aze the participating jurisdictions.
Wherever possible, information has come from financial reports, capital and operational budgets,
and other adopted planning documents of the participating jurisdictions. Where such information
did not exist, a decision was made by the professional staff of the participating jurisdiction to
develop such information.
This report covers certain types of general obligation debt, with general obligation debt being that
for which the properry taxing powers of the jurisdictions ultimately guazantee debt repayment.
General obligation debt that is repaid by traditional municipal ufilities such as water and sewer,
and for which payment is guaranteed by an outside pariy, are excluded from this study. Debt that
is included for this study will be referred to throughout this report as Net G.O. Debt. The
appendix contains a detailed listing of each jurisdiction's debt included in this study.
'The City, in particular, issues many types of debt which are secured solely from non-properry t�
revenue sources. Termed revenue bonds, these aze also excluded from the analysis. In general,
capital items acquired through leasing aze excluded from this analysis. However, lease payments
for the Griffin Building aze included in this study since the primary source of repayment is
property t�es.
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The County debt includes tYuee adjustments in the study. First, the 1994 General Obligation
Library Refunding Bonds are excluded because this issue is repaid by taxes collected exclusively
outside the boundaries of the City of Saint Paul. Second, a portion of the 2000 CIP which
financed the Lake Owasso Residence, a porfion of the 2002 CII' which financed the Ponds Golf
Course, the 2001 Minnesota Public Facilities Authority note for the RiverCentre Pedestrian
Connection Project, and the 2002 Street Aid Bonds are supported by revenues and have been
excluded from this study. Third, the County's remaining eligible debt is pro-rated based on the
proportion of City property taJ� base (tax capacity) in the County, both historical and projected,
over the study period. For 2003, the Ciry's shate of the Ramsey County t� base is 473%.
The Ramsey County Regional Raikoad Authority, wluch currently consists of the seven Ramsey
County commissioners, approved a resolution on November 6, 2001, to sell $50 million in bonds
in 2002. The Authority has the power to levy ta�ces, issue bonds and enier into contracts and
agreements. The purpose of this bonding would be for the local shaze of costs for the acquisition,
restoration and/or refurbishment of a downtown Saint Paul transit, transportation and rail center,
wluch could include the Saint Paul Union Depot, for the east metropolitan azea, and for future
rail transit and related corridors connecting in the downtown Saint Paul transit, transportation and
rail center azea. As of December 31, 2003, there has not been any bonding for the Regional Rail
project. No bonding for the Regional Authority is estimated for putposes of this report.
The School District debt does include Certificates of Participation, which in the DistricYs case,
are paid from tax levies and are secured by the full faith and credit of the Dishict. The debt does
not include four Alternative Facility Bond issues, each originally at $11 million, because the
1997 Omnibus Tas Bill (Article I, sections 1, 2 and 3) provides a State grant that reunburses the
District for the annual costs of these bond issues.
The Port Authority debt consists of a generai obligation debt issued in 1994 and refunded in
2003, which is payable solely from ad valorem taxes spread on all tasable property within the
City. A pledge of the full faith and credit of the City backs the generai obligation Port Authority
issue, and tax levies by the Port Authoriry were certified upon the sale of the bonds. The Port
Authority debt also includes two bond issues which aze primarily payable from tax increments
but also have a back up general obligation pledge of the City. All other outstanding debt of the
Port Authority is payable solely from various revenue sources, including revenues generated by
financed projects, tax increment and reserve fimds, and is therefore excluded for the purposes of
this report.
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Each jurisdiction has maintained its high credit ratings for general obligafion bonds. The ratings
are as follows:
Note: The Saint Paul Port Authority general obligation bonds are secured by the general
obligation pledge of the City of Saint Paul, and therefore cazry the City's ratings of Aa2
and AAA.
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Overview of Debt Issuance a�d the Economy
The Role of Debt
All participating jurisdictions use a variety of funding sources to invest in capital assets. Debt is
one important source of funding. It represents a long-term commitment of resources to repay
obligations. If debt levels become too high, leading to increasing annual draws on the
community's resources for debt service, local govemments will be faced with critical choices as
to their abiliTy to fund operations and provide for future capital investment. Monitoring and
managing the individual and combined levels of debt becomes central to assessing the overall
financial health of the community. In addition, each participant's overall level of debt and their
conhibutions to the overlapping debt placed on other participants is valuable information.
This report focuses on property talc factors. Property taxes are used to fund both operations and
debt service for capital investment. Although the jurisdictions normally use the property taY levy
as financing for debt service payments, they haue certain authority to use other sources for
financing as well.
Table I, shown on page 8, displays the dollaz amount of total Net G.O. Debt by participant and
combined over the period 1999 through 2008.
Table II, on page 9, shows the changes in the annual percentage contributions to the total net
G.O. debt burden, or overlapping debt, as a percent of the total net debt of the combined entities.
Table III, on page 10, e�ibits the effect of inflation on levels of debt from 1999 to 2003. Total
Net G.O. debt is shown both in nominal (actual dollar) terms and in constant 1999 dollazs.
The coxnmittee's findings indicate:
• Total Net G.O. Debt has increased for the years reported. However, this is
commensurate with economical mazket value growth over the same period of time.
The proportion of Net G.O. Debt relative to each jurisdiction has remained constant for
the years reported.
• In constant (infTation-adjusted) doilars, Total Net G.O. Debt has decreased since 1999.
• °, .
$350,000,000
$300,000,000
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$0
■ Ramsey County - City Portion ■ City of Samt Paul
� Samt Paul Public Schools ■ Samt Paul Port Authority
Table I
Total Net G.O. Debt by Issuer
Total G.O. Debt
Ramsey County - City Portion
City of Saint Paul
Saint Paul Public Schools
Saint Paul Port Authorily
Total Existing & New
1999
$54,'196,340
145,685,000
265,606,217
16,040,000
$481,527,557
2000 2001 2002 2003
$54,594,015 $55,542,025 $62,951,570 $69,'199,900
149,400,000 153,740,000 152,760,000 168,505,000
227,791,553 242,085,720 248,622,378 265,050,380
2 0, 2 15,000 20,000,000 24,775,000 24,250,000
$452,300,568 $471,367,745 $489,108,948 $527,005,280
Ramsey County - City Portion
City of Saint Paul
Saini Paul Public Schools
Saint Paul Port Authority
Total Existing & New
2004
$79,453,250
184,680,000
280,548.548
23,725,000
$568,406,798
2005
$79,196,4'I S
183,995,000
292,990,555
23,065,000
$579,246,973
2006
$78,599,960
183,575,000
304,045,178
18,030,000
$584,250,'138
2007
$77,872,878
182,735,000
313,623,'164
17,345,000
$591,576,042
2008
$77,126,795
179,440,000
32'1,695,728
16,
$594,907,523
E
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Calendar Year
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Table II
Overlapping G.O. Debt as Percent to Total
Overlapping Debt as Percent of Total
20
03
60.0%
50.0% �``�-- -�-----_�_______$-_ -__�--------�-
40.0%
30.0%
20.0%
10.0%
0.0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Calendaz Yeaz
�- Ramsey County - Ciry Portion --�- City of Samt Paul
�- Saint Paul Pubfic Schools - f- Samt Paul Port Authority
�
Ramsey County - City Portion
City of Saint Paul
Saint Paul Public Schools
Saint Paul Port Authority
Total
Ramsey Couniy - Ciry Portion
City of Saint Paul
Saint Paul Public Schools
Saint Paul Port Authority
Total
11.3%
302%
552%
3.3%
100.0%
2004
14.0%
32.4%
49.4°l0
42%
100.0%
2000
12.1 %
33.0%
50.4%
4.5%
100.0%
2005
13.7%
31.7%
50.6%
4.0%
100.0%
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zoo�
11.8%
32.6%
51.4%
42%
100.0%
2006
13.5%
31.4%
52.0%
3.1 %
100.0%
zooz
�2.9%
31.2%
50.8%
5.1 %
100.0%
2007
l32%
30.9%
53.0%
2.9%
100.0%a
13.1%
32.0%
50.3%
4.6%
106.0%
2008
� 3.0%
30.1 %
54.�%
2.8%
100.0%
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Table III
Total Net G.O. Debt — Nominal and 1999 Constant Dollar
Nominal G.O. Debt
550,000,000
525,000,000
500,000,000
475,000,000
450,000,000
425,000,000
400,000,000
1999
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2000 2001 2002 2003
Calendar Year
—�— Nommal G.O. Debt —�— G.O. Debt m Constant $
�sss
Ramsey County - City Portion
City of Saint Paul
Saint Paui Public Schools
Saint Paul Port Au4hority
Total Existing & New
$54,196,340
145,685,000
265,606,217
16,040,000
$481,527,557
Consumer Price Index
(Minneapolis/Saint Paul)
G.O. Debt in Co�sNant Dollars:
Ramsey Couniy - City Portion
City of Saint Paul
Saint Paul Public Schools
Saint Paul Port Authority
ToNal Existing & New
163.3
1999
$54,196,340
145,685,000
265,606,217
16,040,000
$481,527,557
z000
$54,894,015
149,400,000
227,79'1,553
20,215,000
$452,300,568
170.1
2000
$52,699,545
143,427,513
218,685,248
19,406,875
$434,219,181
1�
zoo� 2ooz
$55,542,025 $62,951,570
153,740,000 152, 760,000
242,085,720 248,622,378
20,000,000 24,775,000
$471,367,745 $489,108,948
'176.5 179.6
$69,199,900
168,505,000
265,050,380
2
$527,005,280
200'I 2002
$51,388,174 $57,238,259
142, 242.164 138, 885, 924
223,980,726 226,058,098
18,504,249 22,526,489
$436,115,313 $444,718,770
181.7
2003
$62,192,315
151,441,203
238,209,835
21,794,304
$473,637,657
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The Economy
In addition to management, financial operations and debt position indicators, there are several
other elements that demonstrate the ability of an issuer to maintain a stable financial system and
high credit ratings. One notable factor is the local economy. A healthy local economy increases
the probability that an issuer has dependable resources to repay debt in both the short and long
term. Conversely, a weak economy means a limitation in capacity to issue fittther debt because
the resources for repayment aze less reliable. For this report, unemployment, job growth, median
family income, sales growth, property value and job diversity have been selected to represent the
condition of the Saint Paul azea economy and its taac base. Like the rest of the country, Samt Paul
has experienced a recession beginnuig in the year 2000. However, economic data show that
Saint Paul weathered the recession remarkably well.
Unemployment is the number of persons who aze in the labor force but not actively employed, as
a percentage of the total labor force. A low unemployment rate is seen as a sign of a healthy
economy. Saint Paul's annual average 2003 unemployment rate was an estimated 53 percent,
only slightly higher thau its 20021eve1 of 5.1 percent. In contrast, the U.S. unemployment rate
was an estimated 6.0 percent in 2003, up 0.2 percent from its 2002 level of 5.8 percent.
Complementing the unemployment figures, job figures show ttiat Saint Paul did a better job
retaining jobs during the 2000-2002 period than anymajor employment center in Minnesota, and
also grew jobs more rapidiy as recovery began in eazly 2003. Between 2000 and 2002 (on an
annual basis), Saint Paul experienced a 2.3 percent decline in covered employment. This was
significantly better than the 32 percent decline in Rochester, the 4.4 percent decline in
Minneapolis, and the 12.2 percent decline in Bloomington. In 2003, between first and second
quarter, Saint Paul covered employment grew by 2.6 percent, compared to 1.8 percent growth in
Rochester, and 0.6 percent growth in Bloomington and Minneapolis. Indeed, Saint PauPs growth
rate between first and second quarter 2003 was higher than that of any of the ten lazgest cities in
the state.
Moreover, the median family income has steadily risen to $53,959 in 2002 from $47,528 in 1998.
This figure measures the mean earuings of a family, and the 14% increase suggests the wealth of
families continues to rise in the City of Saint Paul. Increasing household earnings are typically
seen as a positive indicator of a healthy economy and gowing tax base (see pagel4).
The sales growth in the City of Saint Paul measures the dollar value of all taaiable sales for the
year in Saint Paul. Growing sales demonstrates increased business in the city and mazks a
healthy economy. Taxable sales have increased 27% since 1998 (see page 14).
Another indicator of the economic strength of Saint Paul is the rising value of its real estate
mazket, specifically, the property value of Saint Paul homes. Between 1998 and 2002 single-
fanuly homes increased 72% in value to a median sales price of $158,000 in 2002 (see page 15).
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a�-8aa
The composition and diversity of the employment base are prime considerations in evaluating the
strength of the economy. The diverse employment base of Saint Paul provides the primary
stre4gth of the community and has proven to be an amaction for continued economic growth and
viability (see page 15).
Sources:
Unemployment: Minnesota Department ofEconomic Security, United States Bureau ofLabor Statistics
Job Refention, Median Family Income: Saint Paul Department ofPlanning and Economic Development
Sales Growth: City ofSaintPaul Office ofFinancial Services
Household Earnings, Average Value of a Single Family Home, Jobs by Sector in Saint Paul: Saint Pau1
Department ofPlanning and Economic Development
12
o�-�'aa
Economic Statistics
Selected Economic Trends in the City of Saint Paul
Unemployment Rate
1998 1999 2000 2001
S
ai
nt Unemployment m Samt Paul
P
a Compazed to Mnmesota and the IJnited States
ul
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
1998
1999 2000 2001
�- Saint Paul i— Miunesota —� United States
2002
2002
Minnesota
United States
o.soo°ra
o.000�ro
-o.soo^ro -�—
1998
2.7% 3.0%
2.5% 2.8%
4.5% 4.0%
Employment in Samt Paul
3.6% 4.7% 5.1%
3.3% 3.7% 4.4%
4.0% 4.7% 5.8%
1999 2000 2001
—�– Increase/Decrease from Previous Year
2002
1998 1999
Job Retention 183,745 185,885
Increase/Decrease
irom Previous Year 1.165°/,
13
2000
188,134
1210%
2001
187,444
(0.367)%
2002
183,879
(1.902)%
o�-�aa
Economic Statistics
Selected Economic Trends in the City of Saint Paul
'1998 1999 2000 200'I
Median Famity Income in Samt Paul
$56,000
$54,000
$52,000
$50,000
S48,000
$46,000
$44,000
1998
1999 2000 2001
�Median Family Income
2002
2002
Median Family Income
$47,528 $48,925 $50,930 $52,749 $53,959
Sales Growth m Saint Paul
$2,900
$2,700
$2,500
$2,300
$2,300
$1,900
$1,700
$1,500
1998
1999 2000 2001
t Tazable Sales in Millions I
2002
Sales Growth
1998
$2,'15'I
1999
$2,331
14
2000
$2,665
zooi
$2,745
2002
$2,731
��-8a a
Economic Statistics
Selected Economic Trends in the City of Saint Paul
1998 '1999 2000 2D01
Value of Smgle Family Aome
$i�o,000
$ I50,000
$130,000
$110,000
$90,000
$70,000
$50,000
1998
1999 2000 2001
t Median Sales Price of Single-Family Home
2002
2002
Median Sales Price o£
Single Family Home
$92,000 $'104,000 $120,OD0 $140,000 $158,000
Jobs by Sector m Samt Paul
Not ELseafiere
Pvblic ��fied /�nstruction
A�inis[ration�\ � / .
Leis¢e and
Hospitality
Trade,
TranspOrta[ion,
Utilities
Education and J Professional and � Financial
Health Services gi�,q�ness Services Activities
Construction 4.9% Edudtion and Health Services 26.1°/,
Manufacturing 7.3% Leisure and Hospitality 8.0%
Trade, Transportation, Utilities 13.0% Other Services 4.0%
Infortnation 4.5% PublicAdministration '10.6%
Financial Activities 8.9% Not Elsewhere Classified 02%
Professional and Business Services 12.5%
15
� � i •
Indicators
Debt financing of public infrastructure affects the participating jurisdictions and their citizens in
a variety of ways. The focus here is on the way in which the overlapping debt of participating
jurisdictions affects property taYes paid by residents within the corporate limits of the City of
Saint Paui and the credit ratings assigned to each jurisdiction. In order to examiue such effects,
the committee has chosen indicators falling into three categories: debt position, citizens' ability
to pay and operationaUcapital finance interface. The indicators were selected because the
subcommittee feels that they are the best representations of the factors this report intends to
address. For each of these areas, indicators of impact have been determiued, analyzed and
siuumarized. These indicators provide basic proxies of the jurisdictions' individual and
combined 'unpacts. Each indicator is profiled as to definition and purpose, and trend/summary.
Where available and applicable, a credit industry benchmark is given and used as a basis to
analyze the overlapping debt.
The debt position indicators chosen for this report are Net G.O. Debt to Indicated Market Value
and Net G.O. Debt per Capita. These indicators provide a valuable view of the debt burden on
available resources and are a factor of considerarion during the credit rating process. The Net
G.O. Debt per Capita to Per Capita Income indicator used in previous 7oint Debt Books has been
replaced by the Debt Service Levy per Capita to Per Capita Income indicator. The Debt Service
Levy per Capita to Per Capita Income, as an ability-to-pay indicator, is a more relevant
comparison to measure annual per capita income to annual per capita debt service levy.
'Fhe Ahility-to-Pay indicators aze Debt Service Levy per Household, Debt Service Levy Per
Capita to Per Capita Income, and the TaY Bill for Debt Service Tax Levies of Median Value
Home. Debt Service Levy per Household shows the tax impact of debt on an individual Saint
Paul household. Debt Service Levy Per Capita to Per Capita Income shows the annual property
taac burden placed on the annual income capacity of Saint Paui cirizens. The Tas Bill for Debt
Service Tax Levies show the property tas nnpact for a median priced home in Saint Paul.
Examination of these three indicators reveals the general tax impact of Saint Paul's overlapping
debt on its citizens.
This report also includes an operationaUcapital finance interface indicator. Debt Service Tas
L,evy as a Percentage of Total Taac Levy shows the proportional impact of the debt on other
components of each jurisdiction's operations.
These indicators aze included in this report, not only because they measure the capacity to handle
debt burden and stability of financial management; they aze also key elements used by rating
agencies when detemuning ratings. The credit rating of a jurisdiction is a critical element of
successful debt management. A strong credit rating means that the issuer is generally able to
issue debt at a lower interest rate, hence reducing costs to the municipality and its taxpayers.
Detailed information relating to the specifics of each indicator is given in the individual profiles
on the following pages.
16
o� �aa
Debt Position Indicators
Total Net G.O. Debt to Indicated Market Value
Definition and Purpose: Debt to indicated market value is a basic credit rating indicator that
shows the total net principal amount of debt to the full value of real
estate. The ultimate source of repayment for this debt is the
general properiy tax, with such taac levied against the value of all
properties. This indicator depicts the overall debt burden as both
the amount of debt and the resources for repayxnent (value) change
over time. I,ow ratios are viewed as positive indicators.
Target Range: Not to exceed 3% to 6% — Moderate Debt Burden, Standazd and
Poor's Public Finance.
Trend/Summary: The combined Net G.O. Debt to indicated market value decreases
from 5.0% in 1999 to 2.4% in 2003. This indicator is projected to
decrease from 2.4% in 2004 to 2.2% in 2008. For the years 2004
through 2008, the indicated market value is assumed to increase at
4.4% each year.
The tazget range is exceeded through 2008, falling into the Low
Debt Burden range.
17
��-Saa
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Debt Position Indicator
Total Net G.O. Debt to Indicated Market Value
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
■ Ramsey Cowity ■ Ciry of Samt Paul � Samt Paul Schools � Samt Paul Port Authority
G.O. Debt to I.M.V.
Ramsey County -
City Portion
City of Saint Paul
Saint Paul
Public SChools
Saint Paul
Port Authority
Topl Debt to
Market Value
% Increase/
Decrease
City I.M.V.
Ramsey County -
City Portion
City of Saint Paul
Saint Paul
Public Schools
Saint Paul
Port Authority
Total Debt to
Market Value
% Increase/
Decrease
City I.M.V
1999 2000 2001 2002 2003
0.6% 0.5% 0.4% 0.4% 0.3%
1.5% 1.3% 1.1% 0.9% 0.8%
2.7% 2.0% 1.7% 1.4% 12%
0.2% 0.2% 0.1% 0.1% 0.1%
5.0% 4.0% 3.3% 2.8% 2.4%
-0.0% -20.0% -17.5% -15.2% -14.3%
$9,779,476,382 $11,237,013,849 $14,204,320,796 $17,512,595,034 $22,062,705,540
zooa zoos zaos zoo� 2ooa
0.3% 0.3% 0.3% 0.3% 0.3%
0.8% 0.7%a 0.7% 0.7% 0.6%
1.2% 12% 1.1% l2% 12%
0.1% 0.1% 0.1% 0.1% 0.1%
2.4% 2.3% 2.2% 2.3% 22%
0.0% -42% -4.3% 4.5% -4.3%
$23,459,209,000 $25,465,589,000 $26,458,424,000 $27,019,859,300 $27,630,190,200
m
D5�-8aa
Debt Position Indicator
Total Net G.O. Debt Per Capita
Definition and Purpose: This indicator is formulated by dividing the total Net G.O. debt by
the total population. It depicts the overall debt burden placed on
the citizens of Saint Paul, as both debt levels and populations
change over time.
Target Range: Stay within range of $1,000 to $2,500 — Moderate Overall Debt Per
Capita, Standard and Poor's Public Finance.
Trend/Summary: Net G.O. debt per capita increased from $1,680 in 1999 to $1,818
in 2003. Net G.O. debt per capita is projected to increase &om
$1,945 to $1,974 from 2004 to 2008. For the years 2004 through
2008, City population is assumed to increase modestly.
The target range is met through 2008.
19
o�-S�a
$2,500
$2,000
$1,500
$1,000
$500
$0
Debt Position Indicator
Total Net G.O. Debt Per Capita
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
■ Ramsey County ■ City of Samt Paul � Samt Paul Schools ■ Samt Paul Port Authoriry
G.O. Debt Per Capifa
Ramsey County - City Portion
City of Saint Paul
Saint Paul Public Schools
Saint Paul Port Authority
Total Debt Per Capiha
City Population
Ramsey Counry- City Portion
City of Saint Paul
Saint Paul Public Schools
Saint Paui Port Authority
Total Debt Per Capita
City Population
1999
$189
508
927
56
$1,680
286,675
2004
$272
632
960
81
$1,945
292,199
2000
$191
520
793
70
$1,574
287,151
2005
$269
625
995
78
$1,967
294,500
t 1]
2007
$193
535
843
70
$1.641
287,260
2006
$265
619
1,024
61
$1,969
296,800
2002
$219
530
S63
86
$1,698
288,000
2007
$260
6�1
1,049
5S
$1,978
299,100
2 003
$239
581
914
84
$'1.818
289,899
2 008
$256
595
1,067
55
$1,973
301,400
�� 8 aa
Ability-to-Pay Indicator
Debt Service Lery Per Househoid
Definition and Purpose: The property t� can be viewed as the price goveivinent chazges
for its services. These services ate broadly divided into operations
(such as public safety, street maintenance, etc.) and iufrastructure
inveshnent (such as pay-as-you-go capital and debt service). This
indicator measures the annual debt service property ta7c levy per
household (annual price of debt). The purpose is to show how ttris
price to the citizens for debt service changes over time with annual
debt levy variations. TYus indicator is not a representation of the
tas bill for debt service (which is based on property values rather
fhan income). A sample tax bill for debt service of inedian value
homes is provided on pages 25-26.
Target Range: Not to exceed $550.
Trend/Summary: The combined debt seivice levy per household increased from
$413 to $484 during the years 1999 to 2003, an average annual
increase of 43%. The combined debt service levy per household is
expected to increase from $437 to $496 in the yeazs 2004 to 2008,
an average annual increase of 3.4%.
The target range is met through 2008.
21
o�-�aa
Ability-to-Pay Indicator
Debt Service Levy Per Household
$600
$500
$400
$300
$200
$100
$0
1 Ramsey County - City Portion ■ City of Samt Paul
� Samt Paul Schools ■ Samt Paul Port Authoriry
Debt Service Levy Per Household
Ramsey County - City Portion
City of Saint Paul
Saint Paul Public Schools
Saint Paul Port Authority
Total
Number of City Households
Ramsey County - City Portion
City of Saint Paul
Saint Paul Public Schools
Saint Paul Port AutFrority
Total
1999
$50
170
182
'11
$413
11 1,923
2004
$73
114
241
9
$437
Number of City Households � 14,588
Figures reported aze for the yeazs taxes are payable.
2000
$53
163
222
11
$449
1 12,109
2005
$81
141
247
9
$478
1'15,490
22
2001
$57
165
233
11
$466
112,195
2006
$76
147
254
9
$486
116,392
2002
$61
167
203
t'I
$442
112.784
2007
$77
145
261
9
$492
'117,294
2003
$64
166
245
'1
$485
113,686
2008
$76
143
268
9
$496
118.196
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
d�-gaa
Ability to Pay Indicator
Debt Service Levy Per Capita to Per Capita Income
Definition and Purpose: This indicator is formulated by dividing the Debt Service Property
Tax Levy per capita by per capita income. It depicts the annual
debt service property taac levy burden placed on the income
capacity of Saint Paul citizens as both debt and income levels
change over time. Low rarios are viewed as positive indicators.
Target Range: Not to �ceed 1%.
Trend/Summary: Net Debt Service Property Taat Levy per capita to per capita
income decreases from 1999 to 2008, from .873% to .692%. For
the years 2004 through 2008, per capita income is assumed to rise
4% per year.
The target rauge is met through 2008.
23
e�-8a a,
Ability-to-Pay Indicator
Debt Service Levy Per Capita to Per Capita Income
1.000%
0.800%
0.600%
0.400%
0.200%
0.000%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
■ Ramsey County ■ City of Saint Paul Saint Paul Schools � Samt Paul Port Authority
Debt Service Levy to Per Capita Income
'1999
Ramsey Counry 0.096%
City of Saint Paul 0.328%
Saint Paul Public Schools 0.352%
SaintPaulPortAuthority 0.021%
Total 0.797%
Ciry Per Capita Income $20,216
2000
0.098%
0.303%
0.411 %
0.020%
0.832%
$21.079
2005
0.127%
0221%
0.385%
0.014%
0.747%
$25,'109
2001
0.102%
0295%
0.416%
0.019%
0.832%
$21,867
2006
0.115%
0.220%
0.381 %
0.014%
0.730%
2002
0.107%
0.292%
0.355%
0.019%
0.773%
$22,404
2007
0.111 %
0.209%
0.378%
0.013%
0.711%
2 003
0.107%
0279%
0.412%
O.O
0.8� 6%
Ramsey County
City of Saint Paul
Saint Paul Public Schools
Saint Paul Port Authority
Totai
City Per Capita Inwme
2004
0.1 � 8%
0.185Yo
0.391 %
0.015%
0.709%
$24,175
Figures reported aze for the yeazs taxes are payable.
24
$26,078
$27,083
$23,274
2008
0.106%
0.199°(0
0.374%
0.013%
0.692%
$28,125
o�-�aa
Ability-to-Pay Indicator
Tax Bill for Debt Service Tax Levies — Median Value Home in Saint Paul
Definition and Pnrpose: A major portion of the debt covered in flus report will be repaid by
properry taJCes. An indicator of the burden of this debt is how the
amount of the tas bill for this debt service changes over time for
representative residentiat properties. This indicator estimates the
change in property tax bills for debt service for a property with the
annual median value in Saint Paul.
Target Range: Effective Tas Rate of less than 0.5%
Trend/Summary: Over the period shown, the increase in the debt service ta�c bill for
a median priced house in Saint Paul was consistent with the rise in
Median Tasable Value. The effective ta�t rate has remained
constant at 3% for the years 1999-2003 and is expected to remain
the same for the years 2004-2008. For the years 2004 through
2008, the median value home is assumed to grow by an average of
8.4% per yeaz.
The target range is met through 2008.
25
• :_-
Ability-to-Pay Indicator
Tax Bill for Debt Service Tag Levies — Median Value Home in Saint Paul
Median Value Home
Taxable Value vs. Tax Bill for Debt
$zso,000
$200,000
$150,000
$100,000
$50,000
$0
1999
�600
$500
$400
$300
$200
$100
$0
2008
Median Value Home
Tauable Value
Ramsey County - City Portion
CiTy of Saint Paui
Saint Paul Public Schools
Saint Paul Port Authority
Total Debt Taxes (Gross)
Effective Tax Rate for Debt
Median Value Home
Taxable Value
1999
$76,100
$76,100
$28
92
95
4
$219
0.3%
2004
$153,200
$115,OOD
2000
$83,400
$82,600
$32
99
124
4
$259
0.3%
2005
$168,500
$132,300
Ramsey Counry - City Portion $52
City of Saint Paul 82
Saint Paul Public Schools 174
Saint Paul Port Authority 7
Total Debt Taxes (Gross) $315
Effedive Tax Rate for Debt 0.3%
Total debt taxes aze reported for the years taaces aze payable.
$62
109
191
7
$369
0.3%
2001
$96,900
$89,600
$35
103
'116
4
$258
0.3%
2006
$182,000
$152,200
$63
124
214
8
$409
0.3%
2002
$117,100
$97,200
$45
111
'144
8
$308
0.3%
2007
$192,900
$175,100
$70
135
243
8
$456
0.3%
2003
$135,000
$106,900
$46
119
'174
7
$346
0.3%
2008
$204,500
$204,500 .
$78
160
281
9
$528
0.3%
26
2000 2001 2002 2003 2004 2005 2006 2007
--F-Median Ta�ble Value Home —�—TotalTaxBill forDebt
� =-
OperationaUCapital Finance Interface Indicator
Debt Service Tax Levy to Total Tax Levy
Definition and Pnrpose: The total tas levy has an operational component and a debt service
component. This indicator shows the proportional share that
represents the debt service component and illustrates over time any
pressure it may exert, either on the total levy or on the operational
components. This indicator is specific to each jurisdiction and not
applicable to the combined jurisdictions.
Trend/Summary: The County's ratio increases from 7.8% in 1999 to a projected rate
of 8.8% in 2008.
The City's ratio decreases from 29.8% in 1999 to a projected rate
of 26.4% in 2008.
The School's ratio increases from 183% in 1999 to a projected rate
of 38.4% in 2008. The debt service tax levy has increased due to
the issuance of capital and alternative bonds; however, the overall
total net tas levy has decreased over the same time period. Major
property ta�c reform by the Minuesota Legislature in 2001 resulted
ia a$66.3 million drop in the total tax levy of the dish beriveen
the payable 2001 levy and the payable 20021evy.
The Port Authority's rario stays consistent at approxunately 45%
through 2008.
27
o�--�a�
OperationaUCapital Finance Interface Indicator
Debt Service Tax Levy to Total Tag Levy — Ramsey County
i2.o°io
io.o�io
s.o�ra
6.o�ro
a.o�ro
Z.o�io
o.o�ro
Ramsey County
1999 2 000 2001 2002 2003
Debt Service Tau Levies $11,759,477 $12,588,304 $13.602,238 $14,573,159 $15,272,897
TotalNetTa�Levies $15�,579,843 $151,580,941 $�58,235,432 $167,653,264 $177,789,322
Debt SeNiCe Levy to Total 7.8% 8.3% S.6% 8.7% 8.6%
2004 2005 20 20 2008
DebtServiceTauLevies $17,587,559 $19,756,967 $18,733,589 $18,924,907 $�8,895,885
TotalNetTarLevies $190,164,964 $195,869,913 $201,746,010 $207,618,t11 $213,846,654
DebtServiceLevytoTotal 9.2°/a 10.�% 9.3% g.1% g.g%
Note: The taac levy amounts shown above represent levies spread on all taxable property within Ramsey County,
not just the portion amibutable to the Ciry of Saint Paul.
Figures reported aze for the yeazs ta�ces aze payable.
�!
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
d�-��a
OperationaUCapital FYnance Interface Indicator
Debt Service Levy to Total Tag Levy — City of Saint Paul
3s.o°io
3o.o�ro
zs.o^io
Zo.o�ro
is.o�ro
io.o^io
s.o°ro
o.o�ro
City of Saint Paul
Debt Service Tau Levies
Total Net Tax Levies
Debt Service Levy to Total
1999 2000 2001
$'19.019.487 $18,319.487 $18.519,487
$63,843,263 $63,843,263 $63,843,263
29.5% 28.7% 29.0%
2002
$'18,838,395
$63,843,263
29.5%
200
$'18,838,395
$63,843,263
29.5%
2 004 2005 2006 2007 2008
Debt Service Tax Levies $13,038,686 $16,323,240 $17,055,271 $16,965,876 $16,896,332
Total Net Tax Levies $63,927,263 $63,972,SS7 $63,972,887 $63,972,887 $63,972,887
Debt SeNice Levy to TOt21 20.4% 25.5% 26.7% 26.5%'' 26.4%
Note: The Total Net Tax Levy includes ihe mandatory/discretionary levy imposed by the City on behalf of the Port
Authority.
Figures reported aze for the yeazs taaces aze payable.
29
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
o�-saa
OperationaUCapital Finance Interface Indicator
Debt Service Levy to Total Tag Levy — Saint Paul Pnblic Schools
as.o�ia
ao.o�io
3s.o�ro
3o.o�ro
zs.o�ra
Zo.o�ro
is.o�ro
io.o^io
s.o�ro
o.o�ro
Saint Paul Schools
1999 20 2001 20 200
Debt Service Tax Levies $20,392,364 $24,854,731 $26,132,583 $22,881,945 $27,809,400
TotalNetTaxLevies $111,431,635 $�11,085,498 $120,137,297 $53.854,010 $67,822,0�8
Debt SeNiCe Levy to Tof21 18.3% 22.4% 21.8% 42.5% 41.0%
2004 2005
Debt Service Tax Levies $27,637,507 $28,483,113
Total NetTax Levies $73,808,113 $75,981,400
Debt Service Levy to Total 37.4% 37.5%
Figures reported aze for the yeazs ta�ces aze payable.
2006
$29,5'13,234
$77,765,500
38.0%
2007
$30,583,222
$79,657,400
35.4%
20
$31,709,877
$82,660,202
38.4%
�
1999 2000 2001 2002 2003 2004` 2005 2006 2007 2008
� :.
OperationaUCapital Finance Interface Indicator
Debt Service Levy to Total Tax Levy — Saint Paul Port Authority
so.o�io
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Saint Paul Port Authority
Debt Service Tax Levies
Total Net Tax Levies
Debt Service Levy to Total
1999
$'1,195,107
$2,645,085
452%
2000
$'1,20D,000
$2,650,000
45.3%
2001
$1,200,000
$2,650,000
45.3%
2002
$1,195,000
$2,645,000
452%
2003
$1,99Q000
$2,640,000
45.1 %
2 004 2005 2006 2007 2008
DebtServiceTa�cLevies $1,06�,000 $1,06�,000 $1,061,000 $1,060,000 $1,065,000
Total Net Tax Levies $2,393,000 $2,374,000 $2,373,000 $2,370,000 $2,376,000
Debt SeNice Levy to ToYdl 44.3% 44.7% 44.7% 44.7% 44.8%
Note: The Total Net Ta�c Levy includes the mandatory/discretionary levy imposed by the City on behalf of the Port
Authority.
Figures reported aze for the yeazs taaces aze payable.
31
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
��-8aa
Capital Investment Strategies and Initiatives
Each participating jurisdicrion is making infrastructure investments to accomplish their specific
initiatives. These initiatives aze based on the individual condirions and objectives of each
jurisdiction. This section sununarizes — by participant — tl�ese condirions, objectives and
initiatives.
Ramsey Connty
Ramsey County provides services to its residents in five
major areas: Huxnan Services, Public Safety and Justice,
Public Health, Parks and Public Works and Central
Administration. The County owns a large number of
facilities and other infrastructure throughout the County
necessary in provitiing these services. Ramsey County has a
capital improvement program process and bonding authority
to fmance the capital needs of all of these facilities.
Capital Improvement Program
The County Boazd established the capital nnprovement
program process, including a cirizens' advisory comxnittee,
in 1987. The Capital Improvement Program Advisory Committee (CII'AC) is made up of 14
citizens appointed by the seven County Commissioners. Ramsey County's Capital Improvement
Program (CIP) budget process begixis with departments requesring projects for $25,000 or more.
CIP projects are currently divided into four categories: 1) Regular Projects, 2) Major Projects, 3)
Equipment Replacement Schedule and 4) Building Ixnprovements. Major Projects, Equipment
Replacement Schedule Projects and Building Improvements are sepazated from what are
generally considered more regular capital maintenance proj ects for discussion and
recommendation purposes.
Regular Projects
The County Board established the following priorities for rating individual capital projects:
1) Protect Life/Safety, 2) Maintain Public Health, 3) Repiace Facility, 4) Maintain Physical
Property, 5) Reduce Operating Costs, 6) Protect Property, 7) Provide Public Service, 8) Provide
Public Convenience and 9) Enhance County Ixnage. CIPAC members individually rank
requested regulaz projects. Staff from the County Manager's Department, Property Management
and the County Attorney's Office also individually rate the regular projects, and the two raukings
are then combined. This combined rank is used to set overall regulaz CIP project request
priorities for the Capital Improvement Program 5-Year Plan, and the annual amount to be
financed from bonds. Most of the CIP regular proj ects are repairheplacement and maintenance
projects that maintain capital facilities and infrastructure. These projects should help improve
operating efficiencies and offset increased costs for operations and repairs.
32
• i -�
Major Projects
Major Proj ects requested by departments include: a sheriff patrol station, court eacpansion
projects, final funding for a public works facility, an 800 MHz radio communications system and
other projects. These projects haue a total cost that would be too expensive to finance all at once.
The projects aze prioritized annually by the County Board with recommendations from the
County Manager to decide which project, if any, will be included in the annual bond sale.
Projects will be considered for financing in future yeazs, depending upon their priority and the
Commty's debt levels, as well as debt service compared to industry benchmarks.
Equipment Replacement Schedule
This program provides for scheduled replacement of equipment for Pazks and Recreation, Public
Works, Communiry Coirections and sheriff's Departments from tas levy funds. Funds aze used
annually to purchase equipment such as squad cars, road construcrion, maintenance equipment
and grounds maintenance equipment.
Building Improvements
The Ramsey County Govemment Centers East and West currently collect rent from occupants of
those buildings. Included in the rental rate is an amount to finance building unprovements that
will be needed in the future. A five-yeaz plan is prepared annually to fund capital improvement
and building maintenance improvement projects in these buildings from rental revenue.
Debt Strategy
In November 1992, Raznsey County became the only Home Rule Charter County in the State of
Minuesota. Most debt and building fund levy limits and other restrictions established under
previous statutes no longer apply, gving Ramsey County the opportunity — and the responsibility
— to establish realistic and affordable capital nnprovement levies for debt service and a Capital
Improvement and Equipment Replacement levy (pay-as-you-go). The only debt limit applies to
all local governxnental units in Minnesota. This limit is 2% of the market value of a11 taxable
property in the County. With this in mind, the following policy was established:
1) A long-range finance plan (10 years) for regular capital maintenance projects and major
building projects.
2) A responsible debt level in accordance with influstry benchmazks.
In addirion, the County participates with the City of Saint Paul, Saint Paui Public Schools and
Saint Paul Port tluthority to review overall general obligation debt on the Saint Paul tas base
through the work of the Joint Debt Subcommittee of the Joint Property Tas Advisory Committee.
33
o �- 8a�
City of Saint Panl
Saint Paul is the State Capitai and Minnesota's
second lazgest city. The City covers an azea of 56
squaze miles, and is situated wholly in Ramsey
County.
Downtown and Corridor Redevelopment
Over the past eight years, Saint Paul has developed
and 'unplemented a comprehensive revitalization
strategy detailed as follows:
Downtown Commercial Developments: The office
market has been repositioned by converting several office buildings to housing, upgrading others and
developing two new office towers for Lawson Software and Minnesota Mutual. The City and Port
Authority ha�e anchored several key employers downtown such as: Ecolab, the Saint Paul
Companies, Minnesota Mutual, Marshall Fields, Minnesota Public Radio, US Bank and the State of
Minnesota. A new educationallcuitural dishict is emerging at the nor[h end of downtown with the
Mianesota Business Academy, MusicTech College and Mianesota Public Radio. A new
entertainment district, located at the west end of downtown, is anchored by the Xcel Energy Center
and the Minnesota Wild. At the edges of downtown, Regions and United Hospitals have just
completed major expansions. Across the river from downtown, a new office business center for
narional corporations like AT&T Broadband and US Bank has been developed.
Downtown Residential Developments: Projects completed in the past five yeazs and planned over the
next rivo years will bring 1,850 new housing units and more than 3,000 new residents to the
downtown azea, a 50% increase in popularion. The North Quadrant and the Upper Landing are two
new downtown urban villages, and the existing Lowertown urban village is filling out. Just east of
downtown, a contaminated railroad yazd is being tumed into the Bruce Vento Nature Sanctuary, and
a new urban village will be developed azound the old L,owertown Depot.
Corridor Redevelopment: Major progress has been achieved in revitalizing several of Saint Paul's
five identified development comdors. The greatest progress has been with the Phalen Comdor
redevelopment of Phalen Village at its eastern end, the Williams Hill Business Center at its western
end, and the first section of Phalen Boulevard now open from Williams Hill to Payne Avenue. The
Great Northern Corridor has been redeveloped from a long-vacant steel plant into the Great Northern
Business Center. Redevelopment plans aze being completed for the University Avenue Comdor and
the Riverview Corridor for Light Rail Transit (LRT} and Bus Rapid Transit (BR"1� within the next
decade. The River Comdor is being dramafically redeveloped with projects on the West Side Flats,
the Upper Landing and the old Island Starion Power Plant, where a new residentiai project has been
proposed.
34
. V
The Housing 5000 Program: Mayor Kelly and the City Council have committed the City to
developing 5,000 new and rehabilitated housing units for all incomes and ages by the end of 2005.
Housing projects have been identified and priorirized based on demand, levet ofpubtic investment,
readiness to proceed and inveshnent of City resources to leverage other private and public funds. By
the end of 2003, the City will have completed or closed on about 2,000 of its 5,000-unit goal, and
potential new projects are eicpected to keep the Housing 5000 Program on track. By achieving
economies of scale, the Housing 5000 Plan allows the City to implement its Affordable Housing
Policy, which makes 10% of the units affordable to fanulies at or below 30% of azea median income
and another 10% of the units affordable to families between 31 % and 50% of azea median. To date,
the City has exceeded both goals.
Competitive Industry Clusters: In the past five yeazs, the City has made significant progress in
anchoring two globally comperitive indushy clusters in the downtown and in diversifying its economy.
The computer and softwaze industry is now anchored by the world headquazters of Lawson Softwaze,
and the insurance industry continues to be anchored by the Saint Paul Companies and Minnesota
Mutual. In anticipation of City and State plans to establish the Bioscience Corridor, the City has
purchased a building to develop into a Bioscience Incubator in partnership with the University of
Minnesota.
Women and Minority Businesses: The City is beginning to implement its Minority Business
Development and Retenrion Program by reaching out to minority chambers of commerce and helping
businesses owned by women, minoriries and the disabled become certified vendors in the City-County
Vendor Ou�each Program.
Strategic Partnerships: The final component of the City's comprehensive revitalization strategy is to
conrinue to develop its strategic partnerships. The City and the Port Authority confinue to work
together on long-term corridor revitalization projects ]ike the Phalen Corridor. Other key parinerships
include the Capital City Partnership and the Saint Paul River&ont Corporation, each of which has
become a clear and independent force for downtown and riverfmnt revitalization in the decade since
their formarion.
Preservation of City Infrastructure
Each yeaz, the City capital budget contains funds to maintain City-owned facilities. The purpose of
this program is to provide funds to be utilized under specific eligibility guidelines for maintenance, to
protect the City's investment in its public facilities.
Capital Improvement Process: The CIB process is built on the premise that the City must preserve the
fiscal integrity of its operating, debt service and capital improvement budgets by engaging in cazeful
and thorough analysis of each capital unprovement proposal, including the long-range unpact on
openting costs and revenue generation. City departments, District councils and other parties annually
submit proposals for capital projects. These proposals are evaluated and prioritized by the Saint Paul
Long-Range Capital Improvement Budget Committee (CIB Committee) and its task forces. Based on
the recommendations of the CiB Cotmnittee, the City Council adopts an annual capital budget and a
five-year "Tentative Program of Commitments," which estimates fixture appropriates needed to
complete initiated projects. Projects aze categorized with one of eleven capital functions: Streets,
Street Lighring, Tra�c Engineering, Bridges, Sewers, Pazks and Open Spaces, Libraries, Housing and
Economic Development, Police, Fire and Safety, and Special Facility Support.
35
� : _.
Saint Paui Pnblie Schools
Saint Paul Public Schools is recognized locally and
nationally as a leader in urban education. Students
and their families benefit from a myriad of
educarional programs and services auailable at
schools throughout the City. Schools are
maintained and managed in an efficient and cost-
effective manner that make them effective leaming
environments.
With more than 43,000 students and 6,500 employees, Saint Paul Public Schools is the second
largest school district in Minnesota. Students hail from counhies throughout the world, and
speak more than 95 languages and dialects.
In 2002-03, Saint Paul Public Schools students were:
White American: 13,450 (31%)
Asian American 12,946 (30%)
African American 11,667 (26%)
Hispanic American 4,752 (11%)
American Indian 797 ( 2%)
Families choose from neighbarhood schools, magneUspecialty schools and extended day
programs. All Saint Paul public schools offer rigorous curriculum and specialized programs,
such as the English language learner program, gifted services and Intemational Baccalaureate
pre-college programs, that challenge all shxdents to reach their potential.
Making Progress: In 1999, Saint Paul Public Schools develaped its Strategic Plan to help the
district better meet the needs of its students. By following the Strategic Plan, the District has
been able to significantly increase student achievement.
Since 1998, the percentage of third- and fifth-grade students considered proficient (at level II-B
or above) on the Minnesota Comprehensive Assessments (MCA) in reading and math has more
than doubled. In 2002-03, students had a greater increase in proficient students than the state
overall on the third- and fifth-grade reading and math MCAs.
Schools and Buildings
To serve its diverse student population, the dishict operates schools located throughout the city
that serve not only as educational hubs, but aiso as community gathering spots where meetings,
elections, events and eelebrations aze held throughout the year.
Saint Paul Public Schoois operates fifty elementary schools (K-6, K-8 or 1-8), nine junior/middle
schools (6-8), seven senior high schools (9-12), a speciai education school, and Open School (K-
12) and a variety of altemative leaniiug centers. In all, the School District owns 72 facilities and
leases 18, comprising a total of 7,227,060 squaze feet About 50 percent of the buildings owned
by Saint Paul Public Schools are more than 50 years old.
�
o�f s�aa
Currently, space is at a premium in the secondary schools, where a student population bubble is
moving through the high schools. The School District is addressing the issue by making creative
use of smaller spaces that in the past had been utilized as non-instructional areas. In the next few
years, the district expects the high school space crunch to dissipate,
When school is not in session, dishict buildings become community gathering spots. Each
November, thousands of Saint Paul residents visit their neighborhood schools to vote.
Thousands more visit schools for Community Education activities, including personal growth
programs, family education, employment haining, adult literacy programs and more. Schools are
also used for community gatherings and non-district sporting events.
Facilities Management and Funding -
To ensure that the schools and facilities are meeting the needs of students and the community,
School Services manages buildings and their operating and constntction funds. In the 2002-03
school year, the revenue from tas levies and bond sales totaled about $26 million. Saint Paul
Public Schools continues to sell $15 million per year in capital bonding to finance improvements
to its buildings and another $11 xnillion per yeaz in altemative bonding to finance deferred
maintenance projects throughout the dishict.
Constrnction Projects Recently Completed or Currently Underway
► An addition to Jackson Prepazatory Magnet, 437 Edmund Avenue, ffiat includes space for
Eazly Education
► Upgrades to the technological capacity of Cleveland Quality Middle Schoo1,1000 Walsh
Street; Nokomis Montessori Magnet, 985 Ruth Street; Wilson Middle School, 631 N Albert
Street; Hunaboldt Junior High School, 640 Humboldt Avenue and Humboldt Senior High
School, 30 E Baker Street
► Remodeling to Murray Juniar High School, 2200 Buford Avenue to improve space for
students to study science and technology.
School Services plans and completes projects in the areas of deferred maintenance, handicapped-
accessibility and health and safety compliance from altemative bonds ($11 million) revenue each
yeat. Deferred maintenance proj ects recently compieted or currently underway include:
► Re-roofing projects at Roosevelt West Side School of Excellence, 160 E Isabel Street; Bruce
F. Vento Elementary School, 409 Case Avenue; and Webster Magnet, 707 Holly Avenue
► Accessibility improvements at Murray Junior High School, 2200 Buford Avenue; Ramsey
Junior High School, 1700 Snnmut Avenue; and Washington Technology Magnet, 1041
Marion Street
� Fire alann system upgrades at various schools throughout the district.
While the School District takes a steady approach to maintaining and managing facilities, the
20021egislature has made changes that will affect the way the Dish levies for proj ects.
Startiug in 2004, the Dishict will only be allowed to levy for 9� percent of its authorized lease
cost. In the past, the legislature allowed districts to levy for 100 percent of the authorized lease
cost. This change will unpact the DishicYs bottom line, as it must find other resources to fund
building projects.
37
♦ :._
Saint Paul Port Authority
The Saint Paul Port Authority, authorized by the Minnesota
Legislature and organized in 1932, contributes to the Twin
Cities East Metro azea growth and prosperity by providing
businesses with clean land on which to expand, space on the
Mississippi River to receive and ship commodities efficiently,
loans for real estate and equipment purchases and workforce
development programs for businesses.
Since 1997, the Port helped retain or create more than 18,000
jobs in the East Metro area.
A seven-member Board of Coinmissioners govems the Port
Authority. The Mayor, with the approval and consent of the
Saint Paul City Council, appoints the Boazd to overlapping
six-yeaz terms. Two Board members must also be City
Councilmembers.
The Port provides four primary business lines for its industrial customers — brownfield
redevelopment, asset-based financing, workforce development and hazbor management.
The Port also is active in East Metro economic development through partnerships with
neighboring communities and regional organizations, and it manages neazly $200 million in
loans and properties on behalf of private investors.
The Port may, after hoiding a public hearing, create development districts within its area of
jurisdiction, make public improvements, acquire and lease or sell land and buildings for
industrial uses. The Port also may acquire, construct, lease and sell industrial commercial and
other revenue-producing projects, enter into revenue agreements for the financings thereof, and
issue bonds payable from revenues derived from such agreements. State-delegated Port
Authority powers include: (i) Acquiring property by condemnation and (2) Levying ad valorem
t�es to pay debt service on general obligation bonds issued by the Port with the approval of the
Saint Paul City Council. City Council consent also is required prior to the issuance of Port
Authority general obligation bonds.
The Port, as an industrial development organization, has 16 fully developed business centers in
Saint Pau1. Two other centers aze being prepared for redevelopment.
Westminster Junction
The Westminster Junction Business Center is a 20 developable acre business center located less
than a quarter mile from Interstate 35E on the new Phalen Boulevard. It wili generate over 500
jobs in 300,000 squaze feet of new building space, and about $590,000 in annual properiy tases.
New building construction will start in spring 2004 and continue through 2005. The new Phalen
Boulevard has made the bnsiness center possible and has spurred construcrion of new housing
and commercial development on the East Side.
�
� / �
RiverBend
Established in 1997, the Port Authority and Wellington Management, Inc. agreed in October
2003 to jointly develop 10 acres of the 22-acre business center along Shepard Road and
Randolph Avenue in Saint Paul. The Port and Wellington each will pay half of the estimated $10
million cost to develop a 120,000 square foot office and showroom building and own 50 percent
of the building when it is completed. The development is expected to provide more than 300
jobs.
Energy Park
The Port Authority and Ryan Development Companies of Minneapolis jointly deveIoped a
100,000-square foot office/showroom building on the last remaining four-acre pazcel in the
Energy Park Business Center at Lexington Avenue and Energy Park Drive. Experior
Assessments, a national testing firm, and 250 of its employees, occupied 60,000 squaze feet of
the Space on August 1, 2003.
Great Northem (Phase n
Twin City Glass Co., a manufacturer now renting space ia Roseville, agreed in 2003 to build a
plant in the Great Northern Business Center. Custom Drywall, a stalwart North End firm, also
operates out of the center that formerly was home to Maxson Steel. The Port established the 22-
acre center in 1997. When fully completed, the business centet is expected to employ 475 people
and generate $350,000 annually in property taxes.
Great Northern (Phase In
The Port Authority recently reached agreement to purchase 13 acres of land from the Burlington
Northern Railroad to form this business center just south of Great Northern Phase I in the heart of
Saint Paul. Plans for the appropriate use of this business center are currently in process.
Williams Hill
Established in 1997, this 25-acre, fully developed business center is along East University
Avenue and Interstate 35E in Saint Paul. Six businesses now occupy the site, employing 460
people and generating more than $440,000 annually in property taYes.
Arlington
Established in 1996, ttris 21-acre business center is adjacent to Interstate 35E north of downtown
Saint Paul� between Maryland Avenue and Arlington Street. Fout businesses now occupy the
site, employing more than 500 people and generating more than $340,000 annually in property
taaces.
Crosby Lake
Established in 1995, this 30-acre business center, once used to store petroleum products, runs
along Shepard Road on the bluffs overlooldng the Mississippi River at Interstate 35E in Saint
Paul. Six companies now occupy the site, employing more than 380 people and generating more
than $400,000 annually in property taxes.
39
o� �aa
Appendig
This Appendis contains statistical data, sources and detailed footnotes that support the analysis
cOntained in tlus report.
Projected Annual Generai Obligation Bonding Assumptions (in millions)
(Principal Only)
CITY OF SAINT PAUL
Property Tax Financed
- Capital Improvement
- Street Improvement Assessment
- Library Agency Bonds
- Koch-Mobil TIGO
Subtotal
SAINT PAUL PUBLIC SCHOOIS
Property Tau Fi�anced
- Faality Improvements
- New Facilities (High School)
Subtotal
RAMSEYCOUNTY
Property Tax Financed
- Capital Improvement
- Soccer PaMers Program
Major Building Projects
- 800 MHZ Communication System
- Sheriff Patrol Station
- Public Works Facility
- Courts Facilities
- Other Projects
Subtotal
SAINT PAUL PORT AUTHORITY
Subtotal
TOTAL
2004 2005
19.000 19.000
2.500 2200
12280 0.000
3.950 0.000
37.730 2'1200
2006 2007
19.000 19.000
2200 2.200
0.000 0.000
0.000 0.275
21200 21.475
2008
19.000
2200
0.000
0.000
21200
11.000 11.000 11.000 11.000 11.000
1 5. 0 00 15.000 15.000 1 5.000 15.000
26.000 26.000 26.000 26.000 26.000
2.500
0.500
14.614
5.334
2.765
4.137
6.750
30.600
0.000
0.000
94.330
2.500
0.000
0.000
0.000
0.000
0.000
7.500
10.000
0.000
0.000
57.200
2.500
0.000
0.000
0.000
0.000
o.aoo
7.500
10.000
0.000
0.000
57.200
2.500
0.000
0.000
0.000
0.000
o.000
7.500
10.000
0.000
0.000
57.475
2.500
0.000
0.000
0.000
0.000
o.000
7.500
10.000
0.000
0.000
57.200
.�
o�-�a a
Table I— Total Net General Obligation Debt by Issuer
Total general obligation debt by issuer consists of the following types of debt:
Ramsey County
Consists of all County general obligation debt outstanding as of December 31, 2003, with the
exception of library bonds paid by taares collected outside Saint Paul. Certificates of
Participation issued in April 1996, which are not backed by the full faith and credit of the
County, are excluded. Also excluded are a portion of the 2000 CIP issue which financed the
Lake Owasso Residence, the 2001 Minnesota Public Facilifies AuthoriTy loan for the RiverCentre
Pedestrian Connection Project, a portion of the 2002 CIP issue which financed the Ponds Golf
Course, the 2002 Street Aid Bonds and the 2003 Public Facility Lease Revenue Series A issue
for the Griffin Building. All of these issues have outside revenue which is used to pay the debt.
Three of these issues are general obligation debt. In addition, the amount of general obligation
debt shown is the net amount applicable to just the City's property value as a percent of the entire
County value in taxable net tas capacity. The full debt amount and applicable Saint Paul shaze is
as follows:
Payable Year
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
zoos
Exisfing
Countywide
Net G.O. Debt
$115,015,000
$114,580,000
$11 &,055,QD0
$117,425,000
$133,090,000
$146,300,000
$136,670,000
$156,729,300
$155,473,600
$'153,942,900
$152,372,200
Projected
New Debt
$0
$0
$0
$0
$0
$0
$30,600,000
$10,000,000
$1Q,000,000
$10,000,000
$10,000,000
Total County Net
G.O. Debt
$115,015,000
$114,580,000
$'I76,055,000
$117,425,000
$'133,090,000
$146,300,000
$167,270,000
$166,729,300
$165,473,600
$163,942,900
$162,372,200
% Applicable
to Saint Paul
48.40%
47.30%
47.30%
47.30%
47.30%
47.30°b
47.50%
47.50%
47.50°k
a�.sove
47.50%
Saint Paul
Portion of County
Net G.O. Debt
$55,667,260
$54.196,340
$54,894.0'IS
$55.542,025
$62,95'1,570
$69.199,900
$79,453,250
$79,'196,4'I S
$78,599,960
$n.s�2.s�s
$77,126,795
Note: Projections for the percent applicable to Saint Paul in 2004 tLrough 2008 assume a stabilized share of the County's rotal debt to be
applicable W the Ciry of Saint Paul.
41
� V
� ♦ � •
Table I — Continued
Ramsey County
The following table lists general obligation debt included and exciuded for Ramsey County for
ffie yeaz ending December 31, 2003.
Issue
1992 Capitai Improvement Refund Series C
1994 Capital Improvement Series A
1994 Capital Improvement Refunding Series C
�995 Capitai Improvement Series A
1996A Capital Improvement Plan Series
1997 Capital Improvement Plan Series A
1998 Capital Improvement Plan Series A
� 998 Capital Improvement Plan Refunding Series B
1999 Capital Improvemeni Plan Series A
2000 Capitai Improvement Plan Series A
2001 Capital Improvement Plan Series 2001A
2002 Capital Improvement Plan Series 2002A
2002 Capital Improvemeni Plan Refunding Series 2002B
2003 Capital Improvement Plan Series 2003A
Total Debt Recognized for JDAC Report
2001 General Obligation Notes (Pedesfian Connedion)
2000 Capital Improvement Plan Series A(lake Owasso)
2002 Capital Improvement Plan Series 2002A (Ponds)
2002 Street Aid Bonds 2002C
Total G.O. Debt
Principai Debt Service Payment Source
$1,590,000 PropertyTaxes
$2,835,000 Property Taxes
$760,000 Property Taues
$6,575,000 PropertyTaxes
$12,120,000 PropertyTaues
$6,420,000 Property Taxes
$1,360,000 PropertyTaues
$3,025,000 PropertyTaxes
$4,180,000 PropertyTaxes
$10,650,000 Property Taxes
$10,110,000 Properry Taues
$30,900,000 Property Taxes
$28,730,000 Property Taxes
$27,015,000 Property Taxes
$146,300,000
$6,722,000 Lease Payments
$3,905,000 S}ate Medicaid
$3,440,000 Revenue Fees
$4,400,000 State Aid
$164,767,000
42
o�t-�aa
Table I — Continued
City of Saint Paul
Consists of general obligation debt as of December 31, 2003. The following types of debt aze
included in ttris report:
► Capital Improvement (CIB)
► Urban renewal
► Special assessment street unprovement
� Tax increments with a G.O. pledge
► Leases payable from property tax
The following types of debt are excluded from this report:
► Debt which is not secured by the City's
G.O. pledge
► Water and sewer revenue debt with a
proven source
► Debt supported by other sources that do
not affect the City's taac base
The following table lists general obligation debY included and excluded for the City of Saint Paul
for the yeaz ending December 31, 2003.
Purpase Principal
Urban Renewal $135,000
Capi}al Improvemenis
Street Improvements
Tax Inaements:
BIoGc 39/Lawson
Midway Marketplace
Riverfront Development
Griffin Building Lease (Police Headquarters)
ToWI Debt Recognized for JDAC Report
CIB for Science Museum/Wabasha Bridge
Block 39lLawson Project— Revenue Supported
Water Pollution Abatement
Water Loan (PFA)
Sewer Loan (PFA)
Sewer Bonds
Subtotal
Total G.O. Debt
Debt Service Payment Source
Property Taxes
$99,815,000 Property Taxes
$22,915,000 StreetAssessments
$16,940,000 Tax Incremenis
$5,460,000
$9,395,000
Tax Incremenis
Tax Incremenis
$13,845,000 Property Taxes
$'I68,505,000
$4,150,000
$21,255,000
$1,270,000
$3,139,545
$17,563,718
$3,865,000
F2nchise Fees
Parking Revenues
Water/Sewer User Fees
Water Utility Revenues
Sewer Utility Revenues
Sewer Utility Revenues
$51,243,263
$219,748,263
43
� • • i
Table I — Continued
Saint Paul Public Schools
Consists of all the School Distdct general obligation debt outstanding as of June 30, 2003,
including Certificates of Participation which aze secured by the full faith and credit and t�ing
power of the District. The Saint Paul Public Schools debt figures increased over the past 12
yeazs due to three major factors that were impacting the need for capital funding. Some of these
factors will continue into the future, and others are no longer an issue for the Dish
The fust factor_was the rapid enrollment growth that began in the mid-`80s and continued
through the late `90s. In the ten years between 1991 and 2001, the student enrollment grew by
6,579 students or 18%. This growth fueled the need for one high school and rivo elementary
schoois. They were built wifh the proceeds of the sal� of Certificates of Participation. The
enrollment has now leveled off, and new debt for the constnxction of new buildings is not
anticipated in the near future.
The second factor has been the changing demographics of the District and the changing needs of
the new students coming into the schools. The District has faced a need to remodel space and
make smaller leanung environments to accommodate the needs of these students. Other issues
related to changing student needs for facilities have arisen due to changes in technology use in
schools and the growth of girls' athletic programs requiring new and different types of spaces in
schools. The District has sold $15 million in general obligarion bonds, l�own as capital bonds,
far the past five years to fund these improvements and will continue to do so for the next six
years.
The third factor is the age of the DistricYs buitdings and the growing need to deal with deferred
maintenance, code requirexnents and environmental safety mandates that arise in older buildings.
The average age of the DistricYs 70 buildings is 44 years old. The District did not issue any debt
for capital purposes from 1978 through 1998 and during that period of time, the operating capital
funds were not enough to keep up with the growing maintenance needs and changing code and
environmental safety mandates of the aging buildings. Major azeas of expenditure here include
roof repair, hxck pointing, fire and life safety updates, azchitectural barrier removal, asbestos
abatement and management, indoor air quality, lead in water and paint, etc. The District has
issued $11 million in general obligation bonds, known as alternative bonds, for the past eight
yeazs to address these issues in District buildings and will continue to do so for the foreseeable
future.
..
o�-�aa
Table I — Continued
Saint Paul Public Schools
The following table lists general obligation debt included and excluded for the Saint Paul Public
Schools for the yeat ending June 3Q 2003.
Issue
1992C Refunding School Building Bonds
1995A School 8uilding Bonds
1996A School Building Bonds
'1996C Refunding Bonds
1998A School Building Bonds
1998B School Buiiding Bonds
1999B School Building Bonds
1999C School Building Bonds
2000A School Building Bonds
20006 School Buiiding Bonds
2001A QZABs
20016 Schoo! Building Bwtds
2001C School Building Bonds
2002A School Building Bonds
20026 School Building Bonds
2002D Refunding Bonds
20036 School Building Bonds
2003C School Building Bonds
1990B Certificates
1993A Certificates
1993C Certificates
'1995C Certificates
19976 Certificates
'1999A Certificates
2002E Refunding Certificates
Total Debt Recognized for JDAC Report
Principai
$550,000
$7,200,000
$7,025,000
$14,075,000
$9,875,000
$13,375,000
$8,900,000
$12,165,000
$14,555,000
$10,675,000
$6,000,000
$4,405,000
$13,500,000
$1'I,000,000
$15,000,000
$13,440,000
$1'I,000,000
$15,000,000
$5,268,543
$2,570,000
$3,86'1,837
$23,625,000
$13,800,000
$12,375,000
$15,810,000
$265,050,380
Debt Service Payment Source
Property Taxes
Property Ta�ces
Property Taues
Property Taxes
Property Taues
Property Taxes
PropertyTaxes
Property Taxes
Property Tarzes
Property Taues
Property Ta�ces
Property Taxes �
Property Taxes
Property Taxes
Property Taxes
Property Taxes
Property Taxes
Property Taxes
Property Taxes
Property Taxes
Property Taxes
Property Taues
Property Taues
Property Taxes
Property Ta�ces
1994B School Building Bonds
79956 School Building Bonds
'19966 School Building Bonds
'1997A School Building Bonds
Total G.O. Debt
$7,300,000
$8,075,000
$8,575,000
$8,625,000
$297,625,380
�
State Grants
Sfate GranLs
State Grants
State Grants
• `
Table I — Continued
Saint Paul Port Authority
Consists of all Port Authority generai obligation debt outstanding as of December 31, 2003 and
excludes all revenue debt.
Issue
1994 Crosby/Jackson Business Parks
2002 Williams Hill Business Center
2003 Crosby/Jackson Refunding
2003 Great Northem Business Center
Total Debt Recognized for JDAC Report
Principal Debt Service Payment Source
$395,000
$4,955,000
$14,535,000
$4,365,000
$24,250,000
Property Ta�ces
Tax Increments/
G.O. Credit Enhancement
Property Taxes
Tax Levy/
G.O. Credit Enhancement
Table II — Overlapping Net G.O. Debt as Percent to Totai
The percentages shown in Table II aze calculated from the debt figures used in Table I.
Table III — Total Net G.O. Debt — Nominal and Constant 1999 Dollar
The inflation adjusted nuxnbers for Net G.O. Debt are based on the debt figures from Table I and
Twin Cities Consumer Price Index figures from the U.S. Department of Labor.
Economic Statistics
Unemployment
Unemployment figures are seasonally adjusted and were obtained from the Department of
Planning and Economic Development.
Job Retention
Numbers reflect the actual number of jobs auailable in Saint Paul on average throughout each
yeaz. Figures are provided by the Department of Planniug and Economic Development.
Median Family Income
Numbers indicate median income for a fanuly and are supplied by the City's Planniug and
Economic Development Department. Median income means that half of the incomes are higher
and half are lower. A family is defined as two or more people related by marriage or blood, as
compued to households which is the number of people living in the same imit, even if it is only
one person.
Sales Growth
All figures aze supplied by the City's Office of Financial Services to indicate the amount of
tasable sales in Saint Paul over the course of a year.
i,
o�-I-B� a-
Value of Single Family Home
All figures supplied by the City's Plauning and Economic Development Department.
Jobs by Sector in Saint Paul
TYris indicator uses actual numbers supplied by the City's Planning and Economic Development
Depaziment.
Debt Position Indicators
Total Net General Obligation Debt to Indicated Market Valne
TYus indicator uses the same debt figures developed in Table I. "Indicated Mazket Value" (IMV)
is also lmown as the true or full mazket value. The IMV is based on the County Assessor's
Esfimated Mazket Value for the City divided by the sales ratio for each yeaz. The ratio for pay
years 1999-2003 was determined by the State Department of Revenue, and the ratio for pay years
20042008 was estimated by the County Assessor's Office. The sales ratio represents the overall
relationship between the Estimated Market Value of property within the comxnunity and the
actual "azms length" selling price when the properiy changes hands. IMV proj ection for pay
2004-2008 include a 4.4% auerage annual growth factor.
Assessment Year Payable Year Estimated Market Value Sales Ratio
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Indicated Market Value
Total Net G.O. Debt Per Capita
$9.779,476.382
$11,237.013,849
$14,204,320,796
$17,512,595,034
$22,062,705,540
$23,45$209,000
$25,465,589,000
$26,458,424,000
$27,019,859,000
$27,630,190,000
This indicator offers a ratio of the debt provided in Table I to tUe city population each year.
WhiTe the 2000 number is a figure extracted from the 2000 census, the other numbers are
estimations obtained from Metropolitan Council and the Saint Paul Planning and Economic
Development Department.
47
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
$8,488,585,500
$9,169,403,30'I
$11,065,165,900
$13,046,883,300
$15,532,144,700
$17,594,406,800
$19,353,547,480
$20,902,155,300
$22,156,284,600
$23,4&5,661,700
86.80°/a
81.60%
77.90%
74.50%
70.40%
75.00%
76.00%
79.00%
52.00%
85.00%
• i �� �
Ability-to-Pay Indicators
Debt Service Levy Per Household
Debt service levies aze the t� levies spread by each entity annually to pay for debt service solely
supported by taa�es. The Ramsey County levies represent only the portion spread on the City of
Saint Paul tas base. The proportional amount applied is the same percent detailed in the notes
far Table I. Figures for the actual,number of City households aze obtained from the 2000 Census
and estimates aze provided by Metropolitan Council and Plauning and Economic Development.
Debt Service Tax Levies
Ramsey County - City Portion
City of Saint Paul
Saint Paul Public Schools
Saint Paul Port Authority
Total
Ramsey County - City Portion
City of Saint Paul
Saint Paul Public Schools
Saint Paul Port Authority
Toql
1999
$5,562,233
19,019,487
20,392,364
1,195.107
$46,169,'191
2004
$8.354,091
13,038,686
27,637,507
1,061,000
$50,091,284
Figures reported aze for the yeazs tuces are payable.
z000
$5.954,268
18,319,487
24,854,731
1,200,000
$50,328,486
2005
$9,384,559
16,323,240
28,483,113
1,061,000
$55,251,912
.;
2001
$6,433,859
18,519,487
26,132,583
1,200,000
$52.285,929
2006
$8,898,455
17,055,271
29,513,234
'1,061,000
$56,527,960
zooz
$6.893,104
18,838,395
22,881.945
1,19b,000
$49,808,444
2007
$8,989,331
16,965,876
30,583,222
'1,060,000
$57,598,429
2003
$7,224,080
18,838,395
27,809,400
1,190,000
$55,061,875
2008
$8,975.545
16,896,332
31,709,877
1,065,000
$58.646,754
� • � �
Total Net General Obligation Debt Service Levy Per Capita to Per Capita Income
This indicator uses the Debt Service I,evy Per Capita figures developed in the table below. Per
capita income is the estimated amount of total income divided by the number of persons in Saint
Paul. Actual City population figures are obtaitted from the 2000 Census and esrimates are
provided by Metropolitan Council and the Saint Paul Planning and Economic Development
Department. T'he source for personal income per capita information is also provided by the
Department of Planning and Economic Development. Their estimates assume a 3% annual rate
of inflation.
Debt Service Tax Levy Per Capita
Ramsey County - City Portion
City of Saint Paul
Saint Paul Schools
Saint Paui Port Authority
Ciry Population
Ramsey Counly - City Portion
City of Saint Paul
Saint Paul Schools
Saint Paul Port Authority
City Popuiation
1999
$19
66
71
4
$16D
2000
$21
64
87
4
$176
2007
$22
64
91
4
$18'I
2002
$24
65
79
4
$172
2003
$25
65
96
4
$190
286,675 287,151 287,260 288,000 289,899
2004
$29
45
95
4
$173
292.199
2005
$32
55
97
4
$188
294,500
2006
$30
57
99
4
$190
296,800
2007
$30
57
102
4
$193
299,700
2008
$30
56
105
4
$195
301,400
.�
�``- �' a-a.
Tax Bill for Debt Service Taa Levies - Saint Paul Resident
Debt service levies aze the tas levies spread by each entity annualiy to pay for debt service solely
supported by taYes. The debt service levies are net of Market Value Credits (MVC) paid directly
to the entity by the State. The County detemunes the tal�able value of a median home value
reflecting the Limited Mazket Value (LM� formula adopted by state law. The taac capacity of a
median value home is then determined by multiplying the class rate by the taxable value.
The talc capacity is then multiplied by the ta�c rate for debt for each enrity. This results in the tas
hill for debt service of a median value home in Saint Paul. The City's annual tasable values of a
median value home, taac capacity of inedian value home and tax rates for debt of each jurisdiction
aze as follows:
Median Taxable Value Home
Tau Capacity
Debt Tax Rates
Ramsey County - City Portion
City of Saint Paul
Saint Paul SChools
Saint Paul Port Authority
Median Taxable Value Home
Tax Capacity
Debt Tax Rates
Ramsey County - City Portion
City of Saint Paul
Saint Paul Schools
Saint Paul Port Authority
�sss
$76,100
$769
3.641 %
11.964%
12.354%
0.520%
2004
$115,OOQ
$1.'150
4.522%
7.130%
15.130%
0.609%
z000
$82,600
$869
3.682%
11.392%
14.269%
0.460%
2005
$132,300
$1,323
4.686%
8239%
14.437%
0.529%
200�
$89,600
$985
3.553%
10.457%
11.777%
0.406%
2006
$152,200
$1,522
4.139%
8.147%
14.060%
0.526%
2002
$97,200
$985
4.569%
11.269%
14.619%
0.812%
2007
$175,100
$1,751
3.998�
7.710%
13.878%
0.457%
2003
$106,900
$1,069
4.303%
11.132%
16277%
0.655%
2008
$204,500
$2,045
3.S14%
7.335%
13.741%
0.440%
The median value home values for years 2004 through 2008 include an average annual growth
factor of 8.4%.
OperationaUCapital �nance Interface Indicator
Debt Service Tax Levy to Total Tax Levy
Debt service tas levies aze the same figures described under the Ability-to-Pay Indicators in this
Appendix, with the exception of the County's, which represents the full County levy rather than
the portion attributable only to the City.
50
� � � i.
Page Reserved for Saint Paul Port Authority Resolution
52
o�-��a
Page Reserved for Saint Paul Public Schools Resolution
54
� Green Sheet Green Sheet
o�- ���
Green Sheet Green Sheet Green Sheet Green Sheet �
�
Department/officefcouncil: Date Initiated:
FS — FmancialServices � 09-AUG-04 Green Sheet NO: 3021668 -
Cordad Person & Phone: Denartment Sent To Person InitiaUDate
Todd Hurley � 0 inancial Serviees
Z66-883� Assign 1 ' ancialServices De rtnentDirector
Must Be on Couneil qgenda by (Date): Number 2 � Anorne _�
/� 1�5� � g Z T Ro ��� g 3 a or's Office Ma or/ASSisffint
Order 4 oa c'
5 i Clerk Ci Clerk
Total # of Signature Pages _(C�ip All Locations for Signature)
Adion Requesfed: -
Approval of 2003 General Obligarion Debt Qverlapping on the Saint Paul Ta7c Base.
Recommendations: Approve (A) or Reject (R): Personal Service Contracts Must Answer the Following Questions:
Planning Commission � 1. Has this personlfirm ever worked under a contract for this department?
CIB Committee Yes No
Civil Service Commission 2. Has this person/firm ever been a aty employee?
Yes No
� 3. Does this person/firm possess a skill not normaily possessed by any
current city employee? �
Yes No
Explain all yes answers on separete sheet and attach to green sheet
Initiating Problem, issues, Opportunity (Who, What, When, Where, Why):
Members of the City, Counry and School District have created a report on the overlapping general obligation debt. Tlris committee
seeks Council approval of the report and its recommendations.
qdvantages If Approved:
Tfie document can be published and available to rating agencies, other government entities and the public.
�
DisadvaniaqeslfApproved:
None AU� ! � �d��l
�✓k�� A���l.�e�[V� F
Disadvantapes If Not Approved: �
The document will not be published, and rating agencies and citizens will not be aware of joint debt informalion and strategies in Saint
Paul.
Total Amount of CasURevenue Budgeted:
Transaction:
Funding Source: Activity Number: C�%S� �����r�� �°�}��+
Financiai Information: p 11(? e ry L
(Explain) ' /iYl7 1 V Lo07
_� — �