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97-71�,�p�-, �, �.�;� i '`' 'r a: � � . . , �. Presented By Referred To RESOLUTION CtN OF SAINT PAUL, MINNESOTA Commikee: Date Council File # �_7 � Green Sheet # �� 7 WHEREAS, in 1977 the City of Saint Paul, Ramsey Counry, Independent School District #625, and the Saint Paul Port Authority joined together and formed a Joint Debt Advisory Committee (JDAC) to control the shared community's general obligafion debt in a responsible manner while providing for the fuhue physical development of the City; and 6 WHEREAS, the 1993 Minnesota I.egislature created the 7oint Properly Taz Advisory Committee, � (7PTAC) wmprised of Ramsey County, the City of Saint Paul and Independent School District #625, a to foster coordinarion between the three jurisdicuons; on taz and spending matters; and io WHEREAS, in 1996 the 7oint Debt Advisory Committee was made a subcommittee of the JPTAC; i� and iz is WHEREAS, during 1996, the 7DAC was reconvened by the 7PTAC and established a debt plan for ia 1996 - 2000; now, therefore be it is ie RESOLVED, that upon recommendafion of Mayor Norm Coleman, the Council of the City of Saint i� Paui does hereby accept the recommendations of the 7PTAC and adopts the recommendations is contained on page 2 of the 1996 Capital Investment and Debt Management for Saint Paul L,ocal i9 Governments report. zo n Requested by Department of: Budget Office Adopted by Council: Date Adop 'on Certified by Cow By: `a- — Approved by Ma or: Date sy: L By: �� n'` , �T Director Form Approved by City Attorney By: , � ? �Z21 �`� Approved by Mayor foz Submission to Couneil By: ! �' � �d- (�SZn�� DEPARTF�I�TVOPPICF/COUNCII. DA]EINRiA1ID ' � , Financia�ser�ices 1/22/97 GREEN SHEET NO. 35873 COMACfPERSON&PHONE , Oj DEPARTMENIDRtECfOH O4 CIIYCOUNCQ, JoeReid 266-8553 M;� O ,— z , / crrrnrco�r � crrrc�cu MUS[BEONCOi1NCQ.AGE!]DABY(DA'LE) a� I J' BUDCECDIltECI'OR � FIN.BMGf.$ERViCPSDIR Y–' O3 MAYOR(ORASSI52 � Finance-Accounting TOTAL # OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATfJRE) acrsox�vesrm Approval of a resolurion to accept the recommenda6ons of the Joint Debt Advisory Committee (a subcommittee� of the JPTAC) and adopt the recommendations of the 1996 Capital Investment and Debt Management for Saint Paut Local Govemments report. RECOhf.�lIDAlIONS. Appmve(A) wRq�(R) PERSONAI. SERVICE CONTRACfS MOST ANSWER THE FOLLOWING QiJESTIONS: PI.ANNWGCOMMISSION _CIV➢,SHtVICECOMI.II55(ON l.Hasihispexson/fumevuworkeAunderacontractforihisdepaztment? cmco,�a.arrES _ YES NO ' s[ntr _ 2. Has ihis personlfum ever been a city employce? n�six[crco[mr _ YES NO sureoxrs wen�covrvca os�ECma+ 3. Does this person/fimi possess a sldll not nomially possessed by any cuaent ciTy employee� YES NO (Explain all yes answers on separate sheet and atfach to green sheet) . ssnn�rnvcr�cosl.eM, rssus, oeeoxivcmv �mo. wnar, vm�. wn=�, wny} , The resolution continues the practice of coordinaring debt plans for the Ciry, Ramsey County, Independent School District #625 and the �Port Authority in order to control the shazed community's general obligation debt in a responsible manner. The report estimates future , capital investment and property tax (general obligation) debt conditions for the period 1996 through 2000, within the corporate limits of � the Ciry of Saint Paul. The report forecasts indicators of the impacts of future debt issuance in the areas of credit rating, ability-to-pay, property�taxes and operations. For each of these indicators, the Subcommittee has established targe[ ranges against which, actual performance and future estimated outcomes can be evaluated. - ADVANiAGESffAPPROVSD � � . Coordination of debt payments, which will affect proper[y tas payers, and stable credit ratings. , � - DISADVANI'AGESIFAPPROVED: ' Noneknown. � �Q�3�� '��'��3 ��' ,� z��a��:�i� ` . ; '�,��;�p{' � ��t� � � �� , .�d � �� #�� DISADVANiAGESOPN01'APPI(OVED , - —.��_. Lack of coordinated planning could result in higher debt levels (and proper[y taYes) and/or larger fluc[uations in debteivice payments from yeaz to yeaz. TOTALAMOUNTOF'fMNSACT[OM Not3�liC2ble COST/REVENUEBUDCETED(CRiCLEONE) O NO FONDiNGSOURCE ACTIVITYNUQffiER PMANQALA'FOAMATiON (EXPLAA� �'Z-�� Y Joint Property Tax Advisory Committee Joint Debt Subcommittee Capital Investment and Debt Mana for Saint Paul Local Governments . . , ��-- � November 18, 1996 SUBCOMMITTEE MEMBERS Elected Officials City of Saint Paul: Saint Paul Public Schools: Ramsey County: Professional Staff City of Saint Paul: Saint Paul Public Schoois: Ramsey County: Saint Paul Port Authority: Financial Advisor Springsted Incorporated: Ms. Bobbi Megard, Saint Paul City Council Member Mr. Marc Manderscheid, Saint Paui School Board Chair Mr. Rafael Ortega, County Board Commissioner Mr. Joe Reid, Budget Director Ms. Martha Larson, Director Depar[ment of Finance and Management Services Ms. Shirley Davis, Treasurer 1�711s. Martha Kantorowicz, Debt Manager Mr. Ken Zastrow Executive Director of Susiness and Financial Affairs Mr. Larry Shomion, Chief Accountant Mr. James Van Houdt Director of Budgeting and Accounting Ms. Marion Holfy Special Projects Manager, Budgeting and Accounting Ms. Laurie Hansen, Chief Financial Officer Mr. David N. MacGillivray Principal, Director of Project Management Ms. Catherine R. Polta, Vice Presidsnt ��-�l � q,� _'� 1 The taxable net tax capacity for 1997 is a preliminary estimate. The taxable net tax capacities for 1998 through 2000 include a 1% growth factor over the previous year. The tax capacity for 1989 represents "gross" tax capacity, rather than "net" tax capacity. The change in the State property tax system from gross tax capacity to net tax capacity primarily resulted in lower values for homesteaded residential and certain agricultural property. Operational/Capital Finance InterEace Indicator Debt Service Tax Levy to Total Tax Levy Debt service tax levies are 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. Both debt service and total tax levies are net of HACA. �� l Table of Contents �� -� � SUMMARY AND FINDINGS ................................................................ RECOMMENDATIONS ....---��--�---�---� .................................................... INTRODUCTION.................� �--�---�-�-�--.................................................. MissionStatement ...................................................................... Strategies.........-�--� � .................................................................... HISTORICAL BACKGROUND ............................................................. METHODOLOGY........ ...........�---......................................................... Pa e s 1 2 3 3 3 4 4-6 SUMMARY OF PARTICIPANTS' INITIATIVES ..................................... 6 Cityof Saint Paul ......................................................................... 6-8 Saint Paul Public Schools ............................................................ 9-10 Saint Paul Port Authority ............................................................. 11-12 RamseyCounty ........................................................................... 12-14 CAPITAL INVESTMENT OVERVIEW ................................................... 14-15 THE ROLE OF DEBT ............................................................................ 16-21 INDICATORS ........................................................................................ Credit Rating Indicator — Debt Per Capita ................................... Credit Rating Indicator— Debt to Indicated Market Value............ Ability-To-Pay Indicator — Debt Service Levies Per Household ... Ability-To-Pay Indicator — Tax Bill for Debt Service Tax Levies ... Operational/Capital Finance InterFace Indicator— Debt Service Tax Levy to Total Tax Levy ................................ 22 23-24 25-26 27-32 33-36 37-41 APPENDIX............................................................................................ 42-47 -47- ��-�� SUMMARY AND FINDINGS The Joint Debt Advisory Committee — an ad hoc group of elected officials and staff of the City of Saint Paul, Saint Paul Public Schools, Ramsey County and the Saint Paul Port Authority — has been active on a periodic basis for twenty years. More recently, due to state legislative mandates, the City of Saint Paui, Saint Paul Public Scfiools and Ramsey County have formed the Joint Property Tax Advisory Committee (JPTAC) and initiated a number of cooperative ventures to control property taxes in corporate Saint Paul. The Joint Debt Advisory Committee has become a Subcommittee of the JPTAC. This report of the Subcommittee will be forwardeci to the participating jurisdictions by the JPTAC with a recommendation to adopt it as a management tool for each jurisdiction, since the report makes decisions about capital improvements and debt in the years 1997 through 2001. This report estimates future capital investment and property tax (general obligation) debt conditions for the period 1996 through 2000 within the corporate limits of the City of Saint Paul. This report also forecasts indicators of the impacts of future debt issuance in the areas of credit rating, ability-to-pay, property taxes and operations. For each of these indicators, the Subcommittee has established target ranges against which actual performance and future estimated outcomes can be evaluated. The principle findings of this report are: . The aggregate level of capital investment for ail four jurisdictions is estimated to decline from $152,324,900 in 1996 to $90,776,800 in 2000. . The aggregate level of general obligation debt for ail fourjurisdictions is estimated to rise modestly from $398,352,000 in 1996 to $407,570,900 in 2000. . The combined credit rating debt burden indicators are estimated to remain relatively constant from 1996 to 2000. . The ability-to-pay indicator of combined debt service property tax levies per household is estimated to rise from $321 per household in 1996 to $392 per household in 2000. . The property tax indicator of the combined debt service tax bill on two representative residentiai properties with market values of $70,000 and $100,000 is estimated to rise on average by 4.4% per year. . This report estimates that future debt service tax levies for the period 1996 through 2000 do not change markedly the balance between property taxes levied for debt service, and those levied for operations for ali four jurisdictions. This report also contains a number of other findings for individual participating jurisdictions, as well as the relative conditions among jurisdictions. These findings are best known through a complete review of the report. a�-11 amount applied is the same percent detailed in the footnote for Table V. The number of households and the number of persons per household, as shown below, are based on Metropolitan Council estimates for the City for 1989 and 1991 through Z005 and U.S. Census figures for 1990. Projections for 1996 through 2000 are frozen at the 1995 level. Number of Households – Citv of Saint Paul 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 111,283 110,249 110,424 110,476 110,430 110,347 110,355 110,355 110,355 110,355 110,355 110,355 Tax Bill for Debt Service Tax Levies – Saint Paul Resident Persons Per Househoid – City of Saint Paul 2.37 2.37 2.37 2.37 2.37 2.37 2.37 2.37 2.37 2.37 2.37 2.37 Debt service tax levies for each entity, as described above, are divided into the total taxable net tax capacity for the City for each year. The resulting tax rate is then applied to the tax capacity of a$70,000 home and a$100,000 home to determine the projected tax bill for debt service levies oniy. The City's taxable net tax capacity and the taxable net tax capacity for a$70,000 and a$100,000 home is as follows: Payable Year 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 City of Saint Paul Taxable Net Tax Ca�aciN $232,147,532 191,430,438 195,340,203 185,397,217 180,614,331 172,801,915 169,558,493 173,323,404 180,188,972 181,990,862 183,810,770 185,648,878 $70,000 Home Taxable Net Tax Capacitv $1,526 720 720 700 700 700 700 700 700 700' 700' 700* $100,000 Home Taxable Net Tax Capacitv $2,276 1,320 1,320 1,280 1,280 1,280 1,280 1,280 1,280 1,280' 1,280' 1,280� ` Assumes no change in the State properly tax system affecting c/ass rates applied to residential homestead property. '�- -46- �� i Table VI — Overlapping General Obligation Debt as Percent to Total The percentages shown in Tabie VI are based on the debt figures used in Table V. Credit Rating Indicators Total General Obligation Debt Per Capita This indicator uses the same debt figures developed in Table V. City population figures for 1989 and 1991 through 1995 are Metropolitan Council estimates. The 1990 population figure is from the U.S. Census Bureau. Population projections for 1996 through 2000 are frozen at the 1995 population level. Total General Obl�ation Debt to Indicated Market Value This indicator uses the same debt figures developed in Table V. "Indicated Market Value" is also known as true or full market value. The IMV is based on the County Assessor's Estimated Market Value for the City divided by the sales ratio for each year as determined by the State Department of Revenue. The sales ratio represents the overall relationship between the Estimated Market Value of property within the community and the actual "arms length" selling price when the property changes hands. The sales ratio for projected years 1997 through 2000 has been frozen at the current level. IMV projections for 1998 through 2000 inciude a 1% growth factor over the previous year. City Estimated Market Values and the applicable sales ratios are as follows: Payable Year 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 ' Preliminary. Ability-To-Pay Indicators EMV 7,230,546,510 7,418,249,107 7,589,260,607 7,484,557,955 7,443,215,152 7,379,988,200 7,394,297,000 7,418,519,500 7,581,102,550' 7,656,913,575 7,733,482,711 7,810,817,538 Debt Service Levy Per Household Saies Ratio 92.6% 90.3 90.5 93.4 94.0 94.1 90.9 89.5 89.5 89.5 89.5 89.5 � 7,808,365,562 8,215,115,290 8,385,923,323 8,013,445,348 7,918,313,991 7,842,707,970 8,134,540,154 8,288,848,603 8,470,505,642 8,555,210,698 8,640,762,805 8,727,170,433 Debt service ievies are the tax levies spread by each entity annually to pay for debt service solely supported by taxes. The debt service levies are net of Homestead and Agricultural Credit Aid (HACA), paid directiy to the entity by the State. The Ramsey County debt service levies represent only the portion spread on the City of Saint Paul tax base. The proportional �� -�t � RECOMMENDATIONS The Subcommittee recommends that: . Target ranges for three indicators be established for the term of this report: . Combined debt per capita not to exceed a range of $1,450 to $1,550; . Combined debt to indicated market value not to exceed a range of 4.5% to 5.5%; . Combined debt service property tax levies per househoid not to exceed a range of $350 to $400. . The governing boards of all four organizations represented on the Joint Debt Subcommittee adopt the report as a management tool for decision-making regarding capital improvements and debt for the next five years; and . The City of Saint Paul, Saint Paul Public Schools, and Ramsey County expand their current efforts at collaborative planning for joint use of current and future facilities, as well as opportunities to transfer facilities among them as facility needs change; and . The participating jurisdictions meet annually to update this report and evaluate compliance within the adopted target ranges. -45- -2- ��-� r � - a�_� 1 INTRODUCTION The City of Saint Paul, Independent School District 625 (Saint Paul Public Schools), the Saint Paui Port Authority and Ramsey County have formed the Joint Property Tax Advisory Committee and its Joint Debt Subcommittee to address property tax levels and the role of debt. This effort is a continuation of a long-standing tradition of cooperation among these jurisdictions, beginning in 1977, to proactively manage their combined debt position. As a new committee, the Advisory Committee and Debt Subcommittee have reviewed both their objectives and strategies. The Subcommittee has adopted the following Mission Statement and strategies: Mission Statement The City of Saint Paul, Independent School District 625 (the Saint Paul Public Schools), the Saint Paul Port Authority, and Ramsey County agree to work together to: coordinate the financing of the area's capital needs, keep capital expenditures within agreed upon debt level targets, and jointly plan for meeting the capital needs of each jurisdiction. Strategies To achieve the goals set forth in the Mission Statement, the four jurisdictions agree to: • Maintain overlapping general obligation debt ratios within a range approved by the four jurisdictions for the five-year period of 1996 through 2000; • Be responsible for notification to 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 the immediate debt-related conditions of the four jurisdictions which would impact property taxes of Saint Paui residents, and take appropriate action to remain consistently within the debt level ranges approved by the four jurisdictions; • Identify annually intermediate to long-range capital spending and debt conditions which would impact Saint Paul residents' property taxes, and fit proposed spending to the group's debt management goals; and • Exchange information and expertise during each jurisdiction's capital improvement budgeting process, such that the jurisdictions can eliminate duplication, share facilities where appropriate, and provide the taxpayers with the greatest return for the jurisdictions' capital improvements. Table V— Total General Obligation Debt by Issuer Total general obligation debt by issuer consists of the foilowing types of debt: Rams� CountX Consists of ali County general obligation debt outstanding as of December 31 of the year shown, with the exception of library and watershed bonds paid by taxes coflected all or partially 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. 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 taacable net tax capacity. The full debt amount and applicable Saint Paul share is as follows: Payable Year 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Total County G.O. Debt $ 91,550,000 93,320,000 92,310,000 95,020,000 95,005,000 97,985,000 104,265,000 119,925,000 122,965,000 129,880,000 123,550,000 126,070,�00 % Applicable to Saint Paul 49.6% 51.4 51.4 51.3 51.2 50.4 49.8 49.1 48.3 47.6 46.9 46.2 Saint Paul Portion of County G.O. Debt 45,408,800 47,966,480 47,447,340 48,745,260 48,642,560 49,384,440 51,923,970 58,883,175 59,392,095 61,822,880 57,944,950 58,244,340 Projections for the percent applicable to Saint Paul in 1997 through 2000 assume a continued reduction in Saint Paul's share of the County's value as a whole by 0.7% each year. City of Saint Paul Consists of ali City generat obligation debt outstanding as of December 31 of the year shown, including general obligation debt supported by special assessments and tax increment. General Obligation Water and Sewer Revenue Bonds (paid by enterprise fund revenues) and Como Conservatory Bonds, which are paid by funds in an escrow account, are excluded. Saint Paul Schools Consists of alI School District general obligation debt outstanding as of December 31 of the year shown, including Certificates of Participation which are secured by the full faith and credit and taxing power of the District. Saint Paul Port Authority Consists of all Port Authority general obligation debt outstanding as of December 31 of the year shown and excludes all revenue debt. -3- ' -44- O O N Z � Z � Z ^ c �c0 ¢ O � (7 = a J � U fC C F O '= a QZ 6 Z W a � � 7 N N a ol N �I A m) m mI A mt mI m � � �I 0 �I rn N{ �) W AI ol � ml W 0 0 0 0 0 0 0 0 0 0 o n o r 'OOG (V O �D In O O O � pI N ' 000 N O �O 0000 00 o CJ O O O � O N ' O O O N OI N ° o ° oo ° o ° o ° o ° o m o 0 0 o m r O O O N O W � O O O N O A ' O O O N OI � O O O O O O O � 0 0 0 �- O 19 W 000 t� O b �0 00 W O t0 V O O O � O I l0 0 0 0 0 0 0 0 0 0 o n o 0 00 0�- n cu w ^OOb Nt� th M ° orn" m � o� o a v< o a o � 0000 �ol � � O O O fV O � O O O O � O N no 00 o co ^ O O O M G V °SSo 00 ° r000 o �n w �- 0 0 0 N O O � N 00 00� o ° o o ° o 0 0 o ^ o o � O O O O I O O O O O O O O D O O O ' O G ` So 00 0 O O O O O O' O C ' 00 0 0• o 00 00l o 0 0 0 0 0 o� oo, ' O O O O O O O O O O O O D O O N N 0 0 0 0 0 O O O O O O O G O O N M � O O O O O 0 0 0 0 0 O O O O O O O O O O N N Q 00 0 0l o 0 0 0 0 0 0 0 0 0 0 Q� oo M O O O O O on ooI r G N O O ^ O O O ol O c w o o w 0 o a o e 00 <S < O W N O M -< 0o Sol S 00 00 0 O O O O O �no 0000 000 ooI �n o � m o 0 0 0 0 0 0 0 o u� n o � <o 000 0 0 0000 �n u� n N O O O O O O O O O' ^ b 1 A O O O O O O O O O N I O O � N O O O O O O O O O O W O < O O O O O O O O O O V O N O 00 00 O 000 Cf t0 �o 0000 00000 � o mo 0000 00000 � o V O 0000 OOtO00 O O N N O O O O O O O � O O ' O � a �nc c000 occcc{ e� c �o 0000 0000o n o ro 0000 00o ino w o ro N O O O O O O O N � O A O W M Wo 0000 00�00� o 0 O O O O O O O 1 A O O 1� O W N O O O O O O O O O O N O N N O O O O O O O^ O O � O h n O O O O O O O N O O O N O V] O O O O O O 0 O O O < O N O 0 0 0 0 O< 0 0 0 O O t0 N O O O O O O W O O O O N � n O O O N H O O O O O O O O OI O O O 1� O O th O O O 1� O ^ t0 O O t7 N O O 0 O O O ? 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W� fit -°�j m � 7 v m o � m m U °' o v m - o m t m�: � o r c... a a ¢ � m¢ o=(A £ W J o m LL�= Y o m o"> °�° d o m a � ¢ ¢ a (J R � L Co y Z c y m ¢ F� o c Q a� m a c U � Q �� n� c c °a :: a c�i .E I� `o Q y � � ¢ x� m m o�£ 3 O � e i. m y m O � LL � U o¢> v Z m s � c r o O � O N NF «5 c'�a O f 6f q• >y�LL F �f �2 c� m c1 a� � 1- Q Z � O L m m m?�� 0 7 F r m m m m m 7 N L c � p Q o d� m 4i ¢�° a � F 2 Z�a(>F6�cNU N ZQ�1�¢ Z N�QUUO U�U� y Z� p r o � I I I c � i Q o I � � I a o 1 I � � � � � ¢ m U a` ii N a` ¢ a` y -43- �� HISTORICAL BACKGROUND � " _ � \ In 1977, these four jurisdicfions - the City of Saint Paul, Saint Paul Public Schools, Ramsey County and the Saint Paul Port Authority - pioneered the concept of coordinated debt management. Their objectives were to mitigate the costs of capital financing by coordinating their efforts. They received nationai recognition in 1989 by the Govemment Finance Officers Association (GFOA) with its Louisville Award for innovation in financial management and the Award for Excellence for debt management. The Louisville Award is given rarely and only in recognition of exceptionat creativity in addressing public sector financial management issues. In addition, the national credit rating agencies have recognized this effort on an ongoing basis. This program has also become the basis for other major public institutions to indicate coordinated capital investment plans. METHODOLOGY 7his report addresses both public capital infrastructure investment and the role of debt. Debt is viewed as a financing tool, used to accomplish the overall objectives of reacting responsibly to the dual demands of infrastructure replacement and accomplishing new initiatives. Therefore, while much of the report focuses on debt managemeni, capital spending is also summarized to show the overall leveis, uses and sources of funding. The report covers two distinct periods: Historical for the years 1989 through 1996 and future for the years 1997 through 2000. These time periods permit a long-term perspective for the trends, occurring both within jurisdictions and combined among the jurisdictions. The report utilizes indicators to symbolize the impacts of debt in a number of categories. The Subcommittee reviewed a range of potential impact areas, and decided to monitor four areas: credit rating, property tax, operational/capital financing interFace, and abitity-to-pay. Within each of these four financial impact categories, one or more indicators show specific trends over the two time periods. Each indicator is profiled in four ways: definition and purpose, target range, trend, and summary. The Subcommittee has established target ranges for each indicator. The target ranges are policy objectives that determine individual and combined compliance with the objectives of the Subcommittee. The established target ranges will remain constant for the entire term of this study. These constant target ranges wili be used over the term of the study to evaluate the actual performance of the participating entities. The Subcommittee recognizes that, based on the needs of the participating jurisdictions, actual performance may cause one or more indicators to exceed their target ranges. The Subcommittee's objective is to manage actual performance such that a majority of the indicators comply with their target ranges. The informationai sources for establishing the indicators are the participating jurisdictions. Wherever possible, information has come from financial reports, capital and operationai 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. Specificaliy, as to the debt information, the approach has been to include, as much as possible, only that type of debt which corresponds to that used by the credit rating agencies, or the debt that has a potential impact on property taxes. Therefore, certain types of debt are not included in this report, most notably revenue-supported debt issued primarily by the City and Port Authority. Detaited information relating to fhe types of debt included and excluded for each jurisdiction is provided in the Appendix to this report. For the City, general obligation debt used for the credit rating indicators (debt per capita and debt to indicated market value) excludes general obligation debt supported by water and sewer enterprise funds and Como Conservatory bonds (which are escrowed). General obligation debt used for the ability-to-pay indicators and the operational/capital finance interface indicator includes only debt paid by taxes, excluding revenue debt and general obligation debt supported by special assessments, tax increment, utility revenues and escrowed funds. The County debt exciudes $3,465,000 Certificates of Participation issued in April 1996. The Certificates are payable from sublease payments made by Ramsey Action Programs, Inc., (a non-profit community action agency), to the County. The Certificates are not secured by the fuil faith and credit of the County. The School District debt does include Certificates of Parficipation, which in the DistricYs case, are paid from tax levies and are secured by the full faith and credit of the District. The Port Authority debt consists of general obligation debt issued in the 1960's and 1970's, and a 1994 general obligation issue, all of which are payabie solely from ad valorem taxes spread on all taxable property within the City. The general obligation debt is backed by a pledge of the full faith and credit of the City, and tax levies were certified upon the sale of the bonds. All other outstanding debt of the Port Authority is payable solely from various revenue sources, including revenues generated by financed projects, tax increment, limited taxes and reserve funds. Also, the report covers only the corporate limits of the City of Saint Paul, and as such, only a portion of Ramsey County is included in the study area. This situation causes iwo adjustments in the amount of County debt included in the study: first, the County's General Obligation Library Bonds of 1989 and 1994 and all Watershed Bonds are excluded because the issues are repaid by taxes collected exclusively outside of Saint Paui or by taxes coilected in special taxing districts which are all or partially outside of Saint Paul; and second, the County's remaining eligible debt is pro-rated based on the proportion of City property tax base (tax capacity) in the County, both historiral and projected over the study period. For 1996, the share is 49.1 %. No attempt has been made to identify and segregate either capital spending or debt into those improvements occurring within the City. The tables which show the County's annual capital investment represent County-wide capital spending. The operationallcapital finance interface indicator, showing the County's debt service levy to the total tax levy, represents full County- wide levy figures, not just the portion spread on the Saint Paul tax base. The ability-to-pay indicators, however, are based on debt service levies that have been reduced to represent only the City's share of the levy. �t�- � � APPENDIX This Appendix contains statistical data, sources and detailed footnotes which support the analysis contained in this report. Table I— Total Annual Capital Investment Total capital spending for each entity is based on capital improvement budget documents for historical data and staff projections for years 1997 through 2000. Tables II/IV — Annual General Obligation Debt Issued to Annual Capital Investment In addition to capital spending data referenced above, annual general obligation debt issued by each entity is listed on the following page and inciudes all general obligation debt backed by the full faith and credit of the issuing entity. The only exclusions are Generai Obligation Library Bonds and Watershed Bonds issued by Ramsey County which are payable from taxes collected all or partially outside Saint Paul. -5- -42- �� -� � Each jurisdiction has maintained their high credit ratings for general obligation bonds. The ratings are as follows: General Obligafion Debt Only Moody's Investors Srandard & Poor's 7urisdiction Service Ratings Services City of Saint Paui Aa Aq+ County of Ramsey Aaa Aq+ Independent School District #625 Aa AA (Saint Paui Schoois) Saint Paul Port Authority Aa AA+ This page intentionaily left biank. The Appendix contains statistical data, sources and detailed footnotes, which support the analysis contained in this report. Finally, the report includes both conclusions and recommendations of the Subcommittee with the intent of providing direction to accomplish both the Subcommittee's and the doint Property Tax Advisory Committee's objectives. SUMMARY OF PARTICIPANTS' INITIATIVES Each participating jurisdiction is making infrastructure investments to accomplish their specific initiatives. These initiatives are based on the individual conditions and objectives of each jurisdiction. This section summarizes by participant these conditions, objectives and initiatives. City of Saint Paul Saint Pauf is the State Capital and Minnesota's second iargest city. The City covers an area of 56 square miles and is situated wholly in Ramsey County. The area has a balanced and diversified employment picture, with no single industry sector dominating. Saint Paul's 1990 U.S. Census figure of 272,235 indicates a stabilization of the City's population. The City has initiated a number of public policies, in pursuit of which major capital investments have been and are anticipated to be made. Over the years, Saint Paul has built an extensive system of police and fire stations, parks, recreation centers and other recreation facilities, libraries, streets, bridges, and sewers that require maintenance, replacement, expansion and additions. Enhancement of the Downtown and the Riverfront Saint Paul's revitalization of its central business district and riverfront is focused on defining appropriate new markets for a downtown core that are realistic and sustainable, such as emphasizing office space for key service businesses and public employers. The City is also -41 - -6- �'� - � working to shift the market perceptions about the riverfront away from the heavy industrial uses of an earlier era, toward an accessible, environmentally sound and economicaliy viable site for a variety of community attractions and commercial enterprises. The City continues to place its emphasis on development efforts that will demonstrate measurable growth on the tax base and in the number of jobs created. Wabasha Bridge The Wabasha Bridge is a$36 million replacement project that will be completed in 1998. Funding for the bridge, one of 280 bridges in Saint Paul and the fourth major Saint Paul bridge across the Mississippi River that has been replaced or renovated in the past ten years, has come from the issuance of City general obligation bonds, as well as State and federal financing. The bridge is the chief link between the Capitoi Complex and the riverfront. It is aiso expected to serve as a major commercial intersection between the downtown core, the Capitol, the river and the West Side of Saint Paul. Science Museum of Minnesota The Science Museum made a major commitment to downtown Saint Paul by choosing a site on the downtown side of the Mississippi River (ailowing a potential link to the riverfront for the first time). In return, the City has made financing commitments of up to $14 million to the Science Museum, artd the State has committed approximately $30 mitlion to this project. The Science Museum will provide a substantial amount of the remaining funding through private contributions. This new $95 million facility, located between the Civic Center and the rivertront, is expected to begin construction in 1997 and promises to be one of the nation's premier science museums. Attendance is projected to increase from approximately 840,000 visitors annually to up to 1.5 miliion visitors annually. Employment at the facility is expected to increase from the current figure of 310 FTEs to 450 FTEs after the new facility is compieted. Civic Center F�pansion In November 1993, the City's HRA issued $65 miilion Sales Tax Revenue Bonds to finance capital costs for the expansion and improvement of the Sainf Pau! Civic Center complex, including additional exhibition hail space totaling 75,000 square feet, 25,000 square feet of new meeting rooms and a 25,000 square foot banquet facility. The groundbreaking took place in November 1994. Project completion is scheduled for 1997, and the facility will continue to operafe during construction. The principle source of payment of the Sales Tax Revenue Bonds is a portion of a City-wide one-half cent sales tax, which became effective September 1, 1993. In addition to the expansion and improvement at the Civic Center, the City's HRA is undertaking the construction of a 450-space parking garage located beneath the new exhibit hall. The new garage was financed in 1995 from proceeds of $7.5 miliion Parking Revenue Bonds, $1.5 miilion Subordinate Notes and equity from the City's Parking and Transit Fund of $1,Q53 million. The debt will be payable from revenues of the City's Parking and Transit �und. The garage is scheduled for completion in early 1997. Enhancement of the Neighborhoods Neighborhood Investment The City°s neighborhoods have long been one of its strongest, although sometimes less visible, assets. Neighborhood retail and commercial activity is strong, and continues to improve. -7- �1'l -'1 � Operational/Capital Finance Interface Indicator Debt Service Tax Levy to Total Tax Levy - Ramsey County �oo.o°� 90.0% 80.0% �o.o�� so.o°� 50.0% 4o.o°k 3o.o°k 20,0% �o,o�ro o.o% 1959 1990 1991 1992 1993 '1994 '1995 �996 1997 '1998 1999 2000 Payable Year Ramsev Countv Debt Service Tax Levies Total Tau Levy D/S Levy to Total Tax Levy t9ss �sso $6,048,031 $6,504,985 $106,233,714 $�11,808,883 5.7% 5.8% 1991 �992 1993 1994 $9,563,751 $10,624,554 $10,453,192 $9,934,215 $127,125,508 $134,23'I,S49 $134,345,396 $139,060,602 7.5% 7.9% 7.8% 7.1% '1995 lsss '1997 7998 7sss 2000 DebtServiceTaxLevies $9,238,680 $10,625,352 510,73'I,'100 $13,02'1,138 $'14,503,975 $16,200,931 Total Tax Levy $140,300,667 $143,084,573 $158,040,226 $169,728,586 $180,441,492 $193,621,324 D/S LOVy to Totel TaX LeVy 6.6% 7.4% 6.8% 7.7°k 8.0% 8.4% Note: The tax levy amouMs shown above represent levies spread on all taxable properiy within Ramsey County, not just a portion af6ibutable to the City of Saird Paul. � ��-� Operational/Capitai Finance interface Indicator Debt Service Tax Levy to Total Tax Levy - Saint Paul Schools 1 oo.o^io so.o°io so.o^� �o.o^io so.o°� so.o°io ao.o°ro so.o^io 20.0°� �o.o�io o.o°ia 1989 1990 1997 '1992 �993 1994 1995 '1996 1997 1998 1999 2000 Payable Year Saint Paul Schools Debt Service Tax Levies Total Ta�c Levy DIS Levy to Total Tax Levy 1989 '1990 '1991 $6,322,838 $7,'102,000 $5,575,000 $90,180,640 $81,542,977 $92,530,664 �.o�ro a.�� s.o�� '1992 '1993 '1994 $1,977,000 $2,759,000 $7,51'1,638 $99,405,585 $98,856,365 $'104,733,603 2.o°io 2.a^� �.2°� 1985 't996 't997 'f998 1999 2000 DebtServiceTaxLevies $10,426,000 $'15,�4�,000 $16,8�4,000 $'17,519,539 $'19,305,978 $20,698,892 TotalTaxLevy $1'I'1,431,635 $120,234,734 $124,450,000 $122,683,539 $126,387,978 $13'I,50'1,892 D!S LeVy to Totdl TaX Levy 9.4% 12.6% 13.6% 14.5% 15.3% 15.7°k Note: Levies collected in tire years shown above are athibutable to the Districf's fiscal year ending June 30 of the next calendar year. For example, taxes collected in 1995 are used in the DistncPs fisca/ year ending June 30, 1996. -39- a�r-�� Encouraging this activity has a double benefit of both strengthening the tax base and providing safe and thriving neighborhoods. The City has adopted a street maintenaRCe program that in the next 13 to 15 years witl pave alt remaining unpaved or older, paved streets in Saint Paul's neighborhoods. Approximately $6 million will be committed in 1996 and 1997, and $8 miilion in 1998, 1999 and 2000. The City will seek to target its other development dollars in areas receiving the paved streets and related public improvements. Midway Marketplace The first stores at Midway Marketplace opened their doors in the fall of 1995, fundamentally changing the retail market in the Midway neighborhood. Montgomery Wards, Ward's Auto Express, CUB Foods, PetSmart, Paper Warehouse and Mervyn's of California are open now; K-Mart is expected to open in the spring of 1997. Upon completion, this development will be a $45 million, 482,554 square foot "power center" that is expected to retain 500 permanent jobs, create 1,500 new permanent jobs, and support up to 650 construction jobs. Preservation of City Infrastruature Preserving Existing Facilities Each year, the City capitai 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. The 1996 and 1997 budgets have committed $1 million to this purpose. Capital Improvement Process City departments, District Councils and other parties annually submit proposals for capital projects. These proposals are evaluated and prioritized by the Saint Paui Long-Range Capital Improvement Budget Committee (CIB Committee) and its task forces. Based on the recommendations of the CIB Committee, the City Council adopts an annual capital budget and a five-year'Tentative Program of Commftments," which estimates future appropriations needed to complete initiated projects. Projects are categorized with one of 11 capital functions: Streets, Street Lighting, Traffic Engineering, Bridges, Sewers, Parks and Open Spaces, Libraries, Housing and Economic Development, Police, Fire and Safety, and Special Facility Support. 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 careful and thorough analysis of each capital improvement proposal, including the long-range impact on operating costs and revenue generation. It is essential to recognize the close tie between the City's operating and capital improvement budgets. New or expanded facilities financed through the capital improvement budget may increase the need for operating budget resources. Conversely, appropriate capital investments can decrease operating expenses. But operating budget decisions, such as deferral of maintenance, can also affect the capital budget. � � `l, �� Saint Paul Public Schools Current Conditions The Saint Paul Public Schools presently own or lease a total of 79 facilities comprising a total of 6,948,741 square feet. Approximately 50% of facilities owned by the District are more than 50 years old. A recent facility utilization survey indicates that, since 1987, the District has added 264 elementary classrooms for a total of 1,215, with a capacity of 25,955 students. At the secondary level, the functional capacity has been determined at 7,987 students forjunior high/middle schools and 12,302 at the senior high school (including Arlington High School). As of October 1, 1996, the District had a total enrollment of 41,664 students with 25,263 in the elementary level and 16,401 in the secondary levels. The total enroliment number does not include students enrolled in the following programs: full-time special education, area learning center and evening high school. The District maintains comprehensive facilities for Special Education and serves more than 5,000 students from newboms to 21-year-olds, in thirteen areas of etigibility. Community Education uses several facilities within the District — some of them leased — and also utilizes space donated by businesses, for services that include: General Programs, Family Education, Employment and Training, Adult Literacy and Special Needs. Trends and Special Programs Several trends in space utilization merit further consideration and will continue to place demands on District space. Some of these trends are: special educafion (including early childhood special education), family education/leaming readiness, desegregation/reassignment policies, TESOL (Teaching Engtish to Speakers of other Languagesj growth, computer technology proliferation, and such miscellaneous program growth as all-day kindergarten, parent resource centers and in-school suspension. Chief among all trends, however, is population growth. Within five years, the District is projecting a shortage of space for approximately 1,000 students at the elementary level. The District does, however, project that it will have adequate space in the junior high/middle schools, and the senior high school space needs will be met with the opening of Arlington High School in fall 1996. The District has adopted and recently revised a District Technology Plan that has clearly defined objectives, and a prioritized list of specific actions and programs needed to achieve these objectives. In 1994, the District also adopted a technology improvement plan which provides over a three-year period for upgrades to communication systems, compufer networks and video systems. The District's most recent estimate for implementing this pian is more than $17 million. There has also been a concerted effort to increase energy conservation throughout the District. Since 1982, the District has invested more than $2.5 million (a significant amount of which was grants) in energy projects, and now realizes an annual energy savings of almost $154,000 as a result of those investments. In addition, the District has entered into a Peak Controlled Rate Program with Northern States Power Company, and will subsequently realize approximately $97,000 ann�ally in electrical cost savings. !n spite of growth of the physical plant, the District has cut its energy budget by $500,000 in the last three years. a�- �1 Operational/Capital Finance Interface Indicator Debt Service Tax Levy to Total Tax Levy - Cify of Saint Paul �oo.o�� so.o^� ao.o�� o.o^� so.o�� so.o�� ao.o�� 30.0% zo.o% 10.0% o.o% Citv of Saint Paul De6t Service Tax Levies TotalTax Levy D/S Levy to Totai Tax Levy Debf Serviee 7ax Levies Total Tax Levy DIS Lery to Totai Tax Levy 1989 '1990 1991 1992 1993 1994 �995 1996 'i997 '1998 1999 2000 Payabie Year 1989 1990 7991 $13.082.792 $10,989,360 $�1.496.813 $53,773,946 $58.282.582 $63.320.821 24.4°k 18.9°k 18.2% 1995 1996 1997 $}4.578,338 $'l4,212.875 $'l4,374.387 $65,348,085 $64,690,287 $64,699,711 22.3% 72.0% 722% 1992 $12.489.955 $64.574.549 19.3°h 1998 $'l4,575,685 $64.734.198 72.5°k 1993 $12.711,327 $65,663,448 19.4°h 1999 $14.G30,'!02 $66,045,477 Y22°k 1994 $13,078,174 $65.617.967 19_9% 2000 $74,367.699 $67.38:i.134 21.3% � -38- `��f OPERATIONALlCAPITAL FINANCE INTERFACE INDICATOR Debt Service Tax Levy to Total Tax Levy Definition and Purpose: The total tax levy has an operational component and a debt service compone�t. This indicator shows the proportional share which 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 situation. Target Range: The ievel of this indicator should differ for different types of jurisdictions. No target ranges were established with the expectation that individual jurisdictions would address their own situations. Trend: The City shows a fluctuation between a low of 18.2% in 1991 to a high of 24.4% in 1989. The Schooi District shows a low point of 2°lo in 1992 to a high point of 15.7% in 2000. The County shows little variation, moving from 5.7°/a in 1989 to 8.4% in 2000. Summary: The Port Authority has been excluded because it relies largely on other revenue sources and uses tax levies for limited purposes. The City and the County show a relatively narrow band of variation (less than 7% and 3%, respectively). The School District is estimating a far larger increase in the proportion of its levy dedicated to debt service. �� -�t � Funding/Population The Plant Planning and Maintenance Department manages the capital funds for all facilities. In 1995/96 the revenue firom tax levies and bond sales totaled approximately $27.6 miliion. In addition, the District recently sold lease participation certificates in the amount of $50 million to finance the construction of a new high school. Several major factors contributing to the need for construction, remodeling, capital improvements and deferred maintenance in the District inciude: aging buildings, program changes, code requirements, environmental safety mandates, energy conservation and, of course, increased student population. Building construction projects recently completed or under construction include: the River Front Educational Center (completion of the top three floors); additions to Prosperity Heights, Sheridan, Horace Mann, and Battle Creek Elementary Schools; additions to Ramsey Junior High School and Harding and Como Park Senior High Schools; and construction of the Ronaid M. Hubbs Center for Lifelong Leaming and Arlington High School. The District has launched a five-year plan to upgrade all facilities to ensure handicapped accessibility and will be substantially complete in 1998. Capital funding projections indicate a decrease in reve�ue. While the Plant Plan�ing and Maintenance Department will have revenue available from Alternative Bonds ($11 million) each year, the DistricYs authority to sell $9 million per year in Capital Bonds expired in 1996 and is the principle reason for the indicated reduction in revenue. Though several projects already have been completed or are planned under the capital bonding program, many outstanding needs will not be met unless additional bonding authority is granted or a new revenue source is identified. Long Range Facilities Plan The Long Range Facilities Plan acknowledges that the Saint Paul Public Schools continue to face growing enroliment, especially at the elementary school level. The District must plan for additional elementary space or implement a significant change in utilization practices at the elementary level within two to three years, or both. AII space decisions must consider the District's adopted commitment to lifelong learning. The most critical unfunded needs ident�ed include space for elementary students and complete technology upgrades. A longer-term projected space shortage at the senior high school level is also anticipated, but is not estimated at this time. This latter space shortage is to be expected given the increasing population at the elementary level, and the DistricYs adopted goal of significantly reducing the number of high school drop-outs. The number of Special Education students requiring residentiai, community-based and mainstreamed environments is increasing yearly. The District anticipates additional space will be needed to accommodate these expanding programs. As the DistricYs enrollment grows, there continues to be a pro6lem in finding sufficient artd adequate space for Community Education activities. The relocation of family education administrative functions, presently located at 740 York Avenue, is expected to cost $72,000 per year in lease costs. -37- -10- �-� -�, i Saint Paul Port Authority The Saint Paul Port Authority, organized in 1932 and existing under the laws of the State of Minnesota, is a redevelopment agency within the meaning of Minnesota Statutes. The Port Authorify is considered a pofitical subdivision and the area in which it may exercise its public power is generally coterminous with the boundaries of the City of Saint Paui. By its enabling legislatiort, the Port is required to facilitate commerce within the Port district through the creation of development districts and to conduct economic development activities in and for Saint Paul and the East Metro region. The governing body of the Port Authority is a Board of Commissioners comprised of seven members, two of whom must be members of the Saint Paul City Council. Members of the Board are chosen by the Mayor, with the approval and consent of the City Council, and serve overlapping six-year terms. The Port Authority provides three primary product lines to its industrial customers: asset-based financing, developable site opportunities, and business assistance services, including customized job training for newly created positions. In addition, the Port Authority is active in East Metro economic development through partnerships with neighboring communities and regionai organizations, and manages more than $400 million in loans and properties on behalf of private investors. The Authority may, after pubiic hearing, create development districts within its area of jurisdiction, and make public improvements therein and acquire and lease or sell land and buildings for industrial and other economic uses. The Authority may also acquire, construct and lease or sell industrial, commercial and other revenue-producing projects, enter into revenue agreements for the financing thereof and issue revenue bonds payable from revenues derived from such agreements. Certain sovereign powers of the State delegated to the Authority include: (1) the power to acquire property by condemnation and (2) the power to levy ad valorem taxes to pay debt service on general obiigation bonds issued by the Authority with the approval of the Saint Paul City Council. City Council consent is also required prior to the issuance of Port Authority genera( obligation revenue bonds. The Port Authority cannot issue general obligation bonds without City Council consent. The Port Authority, as the industriai development organization for Saint Paul, has rectaimed more than 100 acres of land and created or retained more than 5,000 industrial jobs in the past three years. Industrial parks currently being developed, or in the planning phase ihclude: Crosby Lake Business Park The Crosby Lake Business Park is a 40-acre tract of once fallow industrial land being developed along Shepard Road on the bluffs overlooking the Mississippi River at Interstate 35E in Saint Paul. Based on current negotiations, all parcels in the business park are anticipated to be sold by late 1996 or early 1997. Upon completion, the Crosby Lake Business Park will contain 26 developable acres and will house an estimated four to six new manufacturing or ��-�� Ability-to-Pay Indicator Tax Bill for Debt Service Tax Levies -$100,000 Home in Saint Paul <�� F:!s:�1 �� St50 sioo F� 0 Payable Years A Ramsey County (City Portion) ■ Ciry of SaiM Paui ❑ Saint Paul Schools � Saint Paul Port Authority Tax Impact on 5100,000 Home Ramsey CouMy (City Portiw�) City of Sairrt Paul s�rn Pa�i su,00i5 Saim Paul Pat Authoriry Tdal Tax Bill Ramsey County (Cdy Portion) City of SaiM Paul SaiM Paui Schods SaiM Paul Port AuUrordy Totai Tax Biil 1989 1990 1991 $29 $23 $33 128 76 78 sz as 3s i6 13 12 $236 $160 $761 '1995 1996 '1997 $35 $39 $37 110 105 102 79 tf2 120 6 6 6 $�t0 $261 5265 '1992 7993 1994 s�e Ssa sa7 86 90 97 ya 2o ss 78 9 8 $155 5156 $197 1998 1999 2000 $44 $47 $52 103 702 99 125 134 1A3 5 5 5 $'L'/7 8289 $296 Note: For taxes paya6le in 1989, gross tax capadty' was used to detemrne property taxes. Begnrnng wiflr taxes payable in 1990, net tax capacity 2placed gross ta�r capacity as the basis on which taxes are levied. NetWx capacity dilfers fiom gross tax eapaciry primanry by havinglower values for homesteaded residen6al property and cerfain agrfwitu2t properry. -11- -36- �sas isso �ssi �s92 �ss3 �esa �s9s �sss �� sse �sss zaao a�l • 1 I This page intentionally left blank. industrial facilities in approximately 400,000 square feet of space. The $6 million project is expected to result in approximately 500 new and/or retained jobs for the City. Arlington Business Center The Ariington Business Center is a 69-acre site adjacent to Interstate 35E north of downtown Saint Paul, between Maryland and Arlington streets. Land sites shouid be ready for building by mid-1997. Upon completion, the park's first phase will contain 21 developable acres and wili house an estimated four to five new manufacturing or industrial facilities in approximately 350,000 square feet of space. The $13 million project is expected to result in approximately 400 new and/or retained jobs in the City. Williams Hill The Authority is now seeking approval for the redevelopment of an approximately 30-acre tract of land on the northeast intersection of Interstate 35E and University Avenue. Upon completion, the project is expected to provide 25 developable acres and 325,000 square feet of new construction, which wifl generate approximately $550,000 per year in tax increment. In addition, approximately 325 new jobs are expected to be created and/or retained. Ramsey County Ramsey County provides services to its residents in five major areas: Human Services, Public Safety and Justice, Public Health, Parks and Public Works and Central Administration. The County owns a large number of facil"�ties and other infrastructure throughout the County necessary in providing these services, Ramsey County has a capital improvement program process and bonding authority, in order to finance the capital needs of all of these facilities. Capital Improvement Program The Courrty Board established the capitat improvement program process, including a citizens' advisory committee, in 1987. The Capital Improvement Program Advisory Committee (CIPAC) is made up of fourteen citizens appointed by the seven County commissioners. Ramsey County's Capital Improvement Program (CIP) budget process begins with departments requesting 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 Improvements. Major Projects, Equipmenf Replacement Schedule Projects and Building Improvements are separated firom what are generally considered more regular capital maintenance projects for discussion and recommendation purposes. Regular Projects The County Board established the following priorities for rating individual capital projects: 'I) Protect Life/Safety, 2) Maintain Public Health, 3) Replace Facility, 4) Maintain Physical -35- -12- ��-�� Property, 5) Reduce Operating Costs, 6) Protect Property, 7) Provide Public Service, 8) Provide Pubfic Convenience, and 9) Enhance Counfy Image. CIPAC members individually rank requested regular projects. Staff from the County Manager's Department, Property Management, and the County Attomey's Office also individually rank the regular projects, and the two ratings are then combined. This Combined Rank is used to set overall regular 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 projects are repair/replacement and maintenance projects that maintain capital facilities and infrastructure. These projects should help improve operating efficiencies and offset increased costs for operations and repairs. Major Projects Major Projects requested by departments include: a suburban court facility, combined familyfjuveniie courts, a mentaf fiealth/defox facitify, a public works garage, an aduff defention center and a juvenile detention center. These projects have a total cost which would be too expensive to fi�ance all at once. The projects are prioritized annually by the County Board with recommendations from the CIPAC and the County Manager to decide which project, if any, will be included in the annuai bond sale. The adult and juvenile detention facilities have received the highest priority and have been financed since 1994 on a phased basis, which wili be continued through 1998. The other projects will be considered for financing in future years, depending upon their priority and the County's debt leveis and debt service compared to industry benchmarks_ Equipment Replacement Schedule This program provides for scheduled replacement of equipment for Parks and Recreation, Public Works, Community Corrections and Sfieriffs Departments from tax levy funds. Funds are used annuaily to purchase equipment such as squad cars, road construction, maintenance equipment and grounds maintenance equipment. Building Improvements The Ramsey County Government Centers East and West currently collect rent from occupants of those buildings. Included in the rental rate is an amount to finance building improvements which will be needed in the future. A five-year plan is prepared annuaily to fund capital improvement and building maintenance improvement projects in these buiidings from rental revenue. Debf Strategy In November 1992, Ramsey County became the only Home Rule Charter County in the State of Minnesota. Most debt and building fund levy limits and other restrictions established under previous statutes no longer apply, giving Ramsey County the opportunity, and the responsibility to establish realistic and affordable capital improvement levies for debt service and a Capital Improvement and Equipment Replacement levy (pay-as-you-go). The oniy debt limit applies to q �-�� Ability-to-Pay Indicator Tax Bill for Debt Service Tax Levies -$70,000 Home in Saint Paul Taz Impad on S70,000 Hort�e Ramsey County (City Portion) City of Saint Paui SaiM Paul SGwds SaiM Paul PoA AutFwrity Toql Tau Btll Ramsey Camty (City Portion) city of Sainc Paul Saird Paul Sc7�ools SaiM Paul Port AWhority TWaI Tax Bill 7959 1990 1991 $20 $73 $18 86 41 42 42 27 21 11 7 7 $758 $87 $88 1995 1996 1997 $79 $21 $20 60 57 56 43 6] 66 3 3 3 $126 $743 $145 1992 � �994 S27 $Z1 $20 47 49 53 7 tt 30 10 5 4 $85 $85 $708 1998 'i999 2000 $24 $26 $28 56 56 54 G9 74 78 3 3 3 $151 $156 $163 Nofe: For taxes payaWe in 1989, gross tax capacily' was used to detemeine propeRy taxes. Begnning with taxes payable in 1990, net tax capacity replaeed gross tax eapadty as fhe bass on which taxes aie kvied. Net fax capacity dHers from gross tax capaci(y primardy by havinglower va/ues forhomesteaded resdential property am! certain agriculfurdl property. -13- -34- �z-�C ABILITY-TO-PAY ONDICATOR Tax Bill for Debt Service Tax Levies Definition and Purpose: A major portion of the debt covered in this report will be repaid by property taxes. An indicator of the burden of this debt is how the amount of the tax bill for this debt service changes over time for representative residential properties. This indicator estimates this change in property tax bilis for debt service for two representative properties: $70,000 and $100,000 residential homestead properties. The tax bill is based on the estimates of increases in the property tax bases previously discussed. ��-�� all local governmental units in Minnesota. This limit is 2% of the market value of all 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 wifh industry benchmarks. In addition, the County participates with the City of Saint Paul, Saint Paul Schools and Saint Paui Port Authority to review overall general obligation debt on the Saint Paul tax base through the work of the Joint Debt Subcommittee of the Joint Property Tax Advisory Committee. CAPITAL INVESTMENT OVERVIEW Target Range: No target ranges were established with the expectation that individual ju�sdictions would address their own situations. Trend: For the $70,000 property, the tax bill ranged from a high of $158 in 1989 to a Iow of $85 in 1992 and 1993. For the period of 1996 through 2000, the tax bill is estimated to increase from $143 in 1996 to $163 in 2000. Summary: For the $100,000 property, the high and low points for the period 1989 through 1995 are the same as for the $70,000 property. For the period 1996 through 2000, the tax bill is estimated to increase from $261 to $298. For the period 1996 through 2000, representative tax bills are estimated to increase by approximately 14%. Each participating jurisdiction recognizes its responsibility to respond to the demands of infrastructure replacement and enhancement. On the following pages, the overall historical and future levels of capital investments are profiled. Future capital spending is an outgrowth in part of the participants' initiatives previously discussed. The capital investment levels are financed from a variety of sources, of which debt plays a part. Table 1 shows the amount of historical and future combined and individual capital investment by year for the City, the School District, and the County. The Port Authority is excluded because it serves as an industrial development organization for the City. Over the time period 1989 through 2000, combined capital investment reached a high point in 1989 at approximately $182 million. 1996 represents the next highest combined point, at approximately $152 million. The participants estimate future combined capital investments will decrease through 1999, then increase slightly in 2000. -33- -14- ��' Table I Total Annual Capital Investment .. . �, ... • � .. � ... :...� �.. . ... ... .� �.� ..� � �.� r�a �,.� �� r� �o� � �� a� � �� r�� . �i Ability-to-Pay Indicator Debt Service Levy Per Household - Saint Paul Port Authority sz�o s�so s�so s�ao S�2o $700 $80 $60 $40 $ZO � 7989 t990 1991 1992 1993 1994 1995 1996 1997 1996 7999 2000 Payable Year B Ramsey County ■ City of Sainf Paui Ci Saint Paul ScFiools TotaiCaprtalSpending: 1989 1990 7991 �992 1993 7994 RamseyCounty $96,589,875 $9.867.Q74 514.4Q5,769 $7.759.326 572,058,407 $9.Q53.188 Ci[yofSairrtPaul 74.282,SOD G5.088,803 52,538,950 65.437,579 65,197,452 61.858.000 SairdPaulSehods 11.317.W0 26.524.000 35.539.000 32.043.000 29.791.000 37.556.00D Totai 5182,189,375 $101,473,877 $102.483,719 $105,239.905 5107,046.853 $108.467.188 Ramsey County City of Saint Paul Sairrt Paul Sohods Total 1995 1996 1997 1998 1999 2000 $17,825,757 $21,672,865 $30.930,803 $48,7U6.333 512.823.303 530,038.803 64.106�W0 69.2W.OW 40.000�000 37�200.000 37.200.00D 37.700.00D 45.559.WD 61.446.OW 562S5.W0 29.921.000 71.702.000 23.038.000 $'127.490.757 $152,324,865 $727,2'15.803 $115.827�333 $72�725�303 $90.776�803 Note: Mnual capital investrneM figures shown above for Ramsey CouMy represenE Counfy-wide capifal spending, not just the portion at6i6utable to the Cify of Saint Paul. -15- . . Port DeM Serviee Tax Levies N�enber of City Households DIS Levy Per Household Port Debt Serviee Tu Levies N�unber of City Households D/S Levy Per Household 1989 $1.639.504 111.28:i $15 '1995 $842,076 110,355 $8 1990 $1,823,859 N Q249 $17 1996 $823,375 110,355 $7 '1991 $'1,810.634 110,424 $16 t997 $824,689 11Q355 $7 1992 S2,E�62,550 710,476 $23 '1998 $735.432 710.355 $7 1993 $1,232.550 f 70.430 $11 7999 $736.756 t 10.355 S7 7994 $1.023.261 110.347 $9 � $734,�9 110.355 b7 Note: The amorrnts shown above represerK tlebt semte /evres per /auseho/d and are not a repiesentabon W fhe taz bIf! fw debtservice (which is based on properfy va/ues rrthertl,an ineome). -32- 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Fswl Year �� -�� THE ROLE OF DEBT Ability-to-Pay Indicator Debt Service Levy Per Household - Ramsey County Capital investment can be funded by debt and non-debt sources. The mix of these sources are significant in the current and long-term financial health of individual jurisdictions and the burden placed on local taYpayers. Debt represents a long-term commitment of resources to repay obligations. If debt leveis become too high, leading to increasing annual draws on the community's resources for debt service, local governments wili be faced wifh 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 overaN financial health of the community. Also, the decision to proceed with a capital investment can be assisted if each dollar of investment does not result in a dollar of debt. Each jurisdiction's ability to finance capital invesiment is controtled by iis own legislative authority, ability to raise revenues from various sources, and individual policy options. Certain types of local governments have more latitude to raise revenues and incur various types of debt. Therefore, each participanYs situation must be shown individually, and while comparisons among participants may occur, it must be kept in mind that different jurisdictions have varying levels of loCal control. Tables II, III and IV show annuai general obtigation debt issued as a percent of an�ual capitat investment for the City, School District and County, respectively. In certain cases, a participant may show a level higher than 100% because in one debt issuance, a muitipie-year project is financed. Total Co. DeM Service Levy PerceM Applied to City Share City Share of Co. Debt Levy Number of City Households DfS Levy Per Household 1989 $6,048,031 49.6% $2,999.823 111.283 $27 �s90 $6.W4.9&5 51.4% $3.343�562 »o,zas � 1991 '1992 '1993 $9.563,751 $10,624,554 $10.453,192 51.4% 51.3% 512% $4.915.766 $5,450,396 $5.352,034 170,424 170,476 710,430 $45 $49 $48 �ssa $9�934.215 50.4% $5,006.844 »o,sa� S4S 1995 19 6 1997 't998 7999 2000 ToWICo.DebtServiceLevy $9.238.680 $10.625,352 $10,731,100 $13.021,738 $74.503,975 $16.200.931 Pereent Appiied to City Share 49.8% 49.1 % 48.3% 47.6% 46.9% 462% City Share of Co. Debt Levy $4.600.863 55277.048 $5,183.121 $6,198.062 $6,802.364 $7,484.830 NumberofCityHousehoids 110,355 110,355 1�0,355 N0,355 710,355 110,355 D/S Levy Per Household $42 $4T $47 $56 $62 $68 Nofe: The amwi� shown above rzpreserK debt service fevies perhousehold and are rmf a reprasentaSon of fhe taacbil/ for debf serviee (whlch Is based on property values rather than i�rcome). Each participanYs overall level of debt and their contributions to the overlapping debt placed on other participants is also valuable information. Table V shows the dollar amount of total general obligation debt by participant and combined over the period 1989 through 2000. The combined total rises from a low in 1989 of $216 million to an estimated high of $407 million in 2000. Individually, each participant's experience follows the combined situation, with the exception of the City which shows a decrease from a high point in 1994 of approximately $150 million to a low of approximately $132 miliion in 2000. Table VI shows the changes in the annual contributions to the total debt burden, or overlapping debt, as a percent of the total debt of the combined entities. -31- -16- ��-��1 Tabie H Annual G.O. Debt Issued to Annual Capital Investment - City of Saint Paui t60.o°k 140.0% 120.0% 1 D0.0% 80.0% 60.0% 40.0% 20.0% 0.0% CRV of SaiM Paul Debtlssued ToWI Capital Spending Debt to Capital Spending Debtlssued Total CapiWl Spending Debt to Capital Spending 1989 199U 1991 t992 1993 1994 $24.250.000 $14,850.000 5'I3.140.OW $14.485�,000 $33.910.000 $16.650,000 $74.282.500 $65.088.803 $52,538.950 $65.437.579 $65.197.452 $61.858,OW 32.6% 22.8% 25.0% 22.1 % 52.0% 26.9% 1995 1996 7997 1998 1999 2000 $15,610.000 $19.720.000 $"19.600,000 $16,200.000 $16,200,000 $16.700,000 �G4,106.000 $69,206.000 $40.000.000 $37.200.000 $37,200,000 537.700,000 24.4% 28.5°h 49.0% 43.5°k 43.5% 44.3% Note: The Cit}/s fiscal year coincides wrth the ca/endar year, endng December 31 of each year fisfed above. . , Ability-to-Pay Indicator Debt Service Levy Per Household - Saint Paul Schools q�-�1 1989 1990 7991 �992 1993 7994 SID Debt 5ervice Tau Levies $6,322,838 $7,t02,000 $5,575,000 57,977,000 $2,759.000 $7.511,d8 N�unberofCityHousehofds 111,283 tt0,249 110,424 170,476 t10,430 110,347 D!5 Levy Per Household $57 $64 $5p $18 $25 $68 1995 1996 1997 1998 1999 2006 S!D Debt Service Ta7c Levies $10.426.000 $15.141.OW $16,874,000 $17.8� 9,539 $19,305,978 $20,698,892 Nianber of City Househotds 110,355 110,355 110,355 110,355 110,355 110,355 DIS Levy Per Household $94 $737 $753 $161 $775 $188 Note: The amour� shown above represerK deMseiviee levies perhousehold and are nof a represenfation of the far 6if! fw debtservice (fvhlch ls 6ased on propeKy vatues raU�er than irrcomeJ. -17- -30- '1989 '1990 7991 1992 1993 1994 '1995 1996 1997 1998 7999 2000 Fiscal Year � V J � l Ability-to-Pay Indicator Debt Service Levy Per Household - City of Saint Paui '1988 1990 1991 1992 7993 1994 CityDebtServlceTaxLevies $13,062,792 $10,989,360 $17,496,813 $12,489,955 $12,711,327 $13,075,174 Number of City Households 111,283 110,249 110,424 110,476 110,430 110,347 WS Levy PerHousehold $118 $100 $104 $773 $115 $119 1995 996 1997 1998 1999 2000 City Debt Service Tax Levies $74,578,338 $14,212,875 $14,374.387 $14.575.685 $14,630.102 $14.367.G91 Number of City Households 110,355 110,355 110,355 170,355 110,355 110,355 WS Levy Per HousehoM $132 $129 $130 $132 $133 $130 Nofe: The amour� stwwn above represenf debf servicelevies per housebold and are nof a representaSon ofUie faz bilf for de6tservice (whieh is based on property va/ues rather than ineome). q�-' Table III Annual G.O. Debt lssued to Annual Capitai Investment - Saint Paul Schools . ,so.o^� iao.o% �zo.o^.s �w.o°6 so.o% so.o% 40.0% 20.0% o.o% � SaiM Paul Schools Debtlssued Total Capital Spending DeM W Capital Spending Debtlssued Total Capital Spending DeM to Capitai Spending 7989 1990 1991 1992 1993 1994 $0 $41,443.543 $9.00�,000 $12.700.000 $13.000�000 $40,OW,OW $11,317.W0 $26.524,W0 $35,539.OW $32,043.OW $29.791,000 $37,556,000 0.0% 1562 25.3% 39.6% 43.6% 106.5% 1995 1996 1997 1998 1999 2000 $50,OOO.D00 $20,OW.000 $11,000.000 $11,000.000 $17,000.000 $11,000.000 $45,559.W0 $61,446,W0 $56,285,000 $29.921.000 $72.702.000 $23,038,W0 109.7% 32.5% 19.5% 36.8% 48.5% 47.7% Note: Annual capital investrnent figu�es shown above rep�esent the capital spending in each fiscai yearfir the Dis6ict, The DistricPs fiscal year ends June 30 of each yearlisfed a6ove. The amount ofdebt shown for each year is a/so issued wifhin !he same fisea/ yeat as the capita! spending amount Proceeds of the debt are spent down over severa/ years. _29_ _�g- 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Fiscal Year ��-�� Table IV Annual G.O. Debt issued to Annual Capital Investment - Ramsey County 160.0% 140.0%a 120.0% 100.0% 80.0% 60.096 40.0% 20.0% 0.0°.6 RamsevCouMv Total Debt Issued Total Capital Spending DeM to Capital Spending 1989 $80.500.000 $96,589,875 83.3% 1990 199'1 $7,580.000 $3.700.000 $9,861.074 $14.405.769 76.9°k 257% 1992 1993 56.840.000 54.700.000 s�.�ss.azs $,zoss.ao, 88296 39.0°.6 1994 $6,470,000 $9.053,188 71.5°h 1995 1996 1997 1998 1999 2000 Totai Debt Issued $11.045.000 $17,570.000 $9.275.000 $14,085.000 $3.490.000 $14,535,000 Total Capital Spendirg $17.825.757 $21.672.865 $30,930.803 $48,�(76.333 $12.823,303 $30.038.803 Debt to Capital Spending 62.0% 81.1 % 30.0% 28.9% 272% 48.4°h Note: Mnuat capita! investrnent figu,es shown above torRamsey CouMy represent County-wide capital spendng, not just the portion athibutable Eo tlre City of Saint Paul Debt issued 2presents the amount issued that is payable from a generai County-wide tax lery and excfudes debt issued which is paya6le from a fax levy spread on only suburban communities. The County's fisca! year coincides witl� the calendar year, ending December 31 of each year lisfed above. ��-�1 Ability-to-Pay Indicator Total Debt Service Levies Per Household saoo $350 a $300 $250 $200 $150 $100 $50 $0 � . D/S Levy Per Householtl 1989 , 1990 1991 1992 1993 1994 Ramsey CouMy (City Partion) $27 $30 $45 $49 $48 $45 City of SaiM Paul 118 100 104 113 115 119 Saird Paul Schools 57 64 50 78 25 68 SaiM Paul Port Authority 15 17 16 23 11 9 Total $216 $211 $216 $203 $200 $241 1995 1996 1997 1998 7999 2000 � Ramsey CouMy (City Portion) $42 $47 $47 S56 $62 $68 Cily of SaiM PaW 132 129 130 732 133 130 SaiM Paul Schools 94 137 153 161 775 188 Saird Paul Port Authority 8 ? Z ? � � Total $276 $321 $338 $356 $376 $392 1989 1990 1997 1992 1993 1994 Number of City Households 111,283 110,2d9 110,424 110,476 110,430 'I'10,347 1995 1996 1997 1998 1999 2000 Number of City Households 110,355 110,355 110,355 110,355 110,355 110,355 Note: The amourtu shown above represent debi service /evies per household and are not a represeniaSon of fhe tar bilf for debt service (which is based on property values rather than income). -28- -19- 1989 1990 1991 7992 1993 1994 1995 1996 1997 1998 1999 2000 Payabte Year � Ramsey County (Ciry Portion) ■ City of SaiM Paul ❑ Saint Paul Schools ■ SaiM Paui Port Authority 19&9 1990 1991 1992 1993 1994 1995 1996 1997 1996 1999 Z000 Fiscal Year ��Z-Z ABILITY-TO-PAY INDICATOR Debt Service Levy Per Household Definition and Purpose: The property tax can be viewed as the price government charges for its services. These services are broadly dividecf into operations (such as public safety, street maintenance); and infrastructure investment (such as pay-as-you go capital and debt service). This indicator measures the annual debt service property tax levy per household (annual price of debt). The purpose is to show how this price to the citizens for debt service changes over time with annual debt levy variations. No industry benchmarks exist in this area, and this information should be used only as a relative indicator of increase or decrease. Each jurisdiction is listed separately. This indicator is not a representation of the tax bill for debt service (which is based on property values rather than income}. Sample tax bills for debt service are provided on pages 34 and 36. Target Range: $350 -$400 fior Debt Service Levy per Household. No iarget ranges were established for Debt Service Levy perHousehold, wfth the expectation that individual jurisdictions would address their own situations. Trend: Summary: The City shows an increase from 1990 to 1995, then a leveling through 2000. The School shows a reduction from 1990 to 1992, fhen an increase through 2000 to $188. The County shows no pattem until 1995, after which it increases through 2000. The PoR stays at a flat level after 1995. The overall trend is upward. The number of households has been frozen at the 1995 level for 1996 and thereafter. a'i-�� Tabie V Total G.O. Debt by Issuer $zoo,000,000 $�so,000,000 $iso,000,000 $140,000,000 si2o,000,000 $�oo,000,000 $ao,000,000 $60,Q00,000 $40,000,000 $2o,00a,000 $o Calendar Year � Ramsey County ■ City of Saint Paul 0 Saint Paul Schools � Saint Paul Port Authority Total G.O. Debt: Ramsey County City of Saint Paul Saint Paul Schoois Saint Paul Port Authority Total Existing & New Ramsey County City of Saint Paul Saint Paul Schools Saint Paui Port Authority Total Existing & New 1989 $45,408,800 141,679,000 24,440,000 4,305.000 $2'15,832,800 1995 $51,923,970 149,465,000 157,603,209 17.490.000 $376,482,179 1990 $47.966.480 150,0'11,000 58,263,743 3840.000 $260,081,723 '1996 $58,883,175 147,320,000 175,048,733 �7.100.D00 $398,351,908 1991 $47,447,344 �46,387,000 59,783,743 3,375:000 $256,993,083 '1997 $59,392,095 146,�50,000 180,78'1,931 16.800.000 $403,'124, 026 '1992 $48,745.260 142,930,000 65,63�,959 Zsoo.000 $260,207,219 1998 $6'1,822.880 �ao,aso,000 184,645,832 16.475.000 $403,393,712 '1993 $48,642,560 149,625,000 75,152,938 2.390.000 $275,810,498 1999 557,944,950 135,695,000 '187,773,450 22.165.000 $403,578,400 1994 $49,384,440 149, 975, 000 11'1,462,306 17.870.6Q0 $328,691,746 2000 $58,244,340 '131,710,000 190,366,553 27.250.000 $407,570,893 -27 -20- � O N th � � (O I�- N � O eD W � � � � m � Q� � m O W W � � � W W � � � � N � � / � I Table VI Overtapping G.O. Debt as Percent to Total �o.o% 6D.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0°h 196 Overlapping Debt as Percent of Total: �989 Ramsey County 2'1.0°k City of Saint Paul B5.6°k Saint Paul Schools 'I1.3°k Saint Paul Port Ruthority 2.0% Total 100.0°k Ramsey County City of Saint Paul Saint Paul Schools Saint Paul Port Authority Total '1990 18.4°h 57.7% 22.4% 1.5% 100.0% 1995 '1996 13.8°k '14.8°� 39.7°l0 37.0°k 41.9°� 43.9% 4.6°!0 4.3% 100.0% 100.0% 1991 18.5% 57.0°k 23.3% 1.3% 100.0% 1997 14.7°k 36.3% 44.8% 4.2% 100.0% '1992 18.7% 54.9% 25.2% 1.t% �00.0% 1998 15.3°k 34.8% 45.8% 4.t% 100.0°k 1993 � 7_6% 54.2% 27.2% 0.9% 100.0% 1999 14.4% 33.6°k 46.5% 5.5% �00.0% 1994 15.0% 45.6°k 33.9% 5.4% '100.0°k 2000 14.3°k 32.3% 46.7°k 6.7% '100.0% r 0 Credit Rating Indicator Total G.O. Debt to Indicated Market Value s.00^� a.so^6 4.00% 3.50%'0 3.00°.6 2.50% 2.00% 1.50% 7.00°b 0.50:6 0.00% G.O. Debt to I.M.V. Ramsey County City of SaiM Paui Saint Paul Schools Saint Paut Port Authority Total Debt to Mkt Value Moody's Medians 7989 0.58°b 1.81% 0.31 % 0.06°h 2.76% 3.8% 7995 o.sa% 1.84% 1.96% 0.Y2% 4.63% 3.8% 7990 0.58°b 7.83% 0.71 % 0.05% 3.17% 3.0°k 7996 o.�i% 1.78°h 2.71:6 0.27% 4.81% 4.'I% '1997 0 57°5 1.75°b 0.71°,G 0.04°b 3,06% 4.0°,G 1997 o.� '1.73% 2.73°b 0.20% 476% WIA '1992 0.61 % 1.78% 0.82% 0.04% 325°� 3.7% 7998 o.n�.c 1.64% 2.16% 0.'19% 4.72% WA 1993 0.6'I % 1.89°h 0.95% 0.03% 3.48% 3.1% 7999 o.sr� '1.57°b 2T7% 0.26% 4.67% WA ��` �� 1994 0.63°b 1.91°.6 1.42°.6 023% 4.19% 3.5% 2000 o.s�� 1.51% 2.18% 0_3'I % 4.67°b WA Ramsey CouMy City of SaiM Paul , SaiM Pauf Schoois sa�rn Pa�� Port nw,only Total Debt ta Mkt Value Moody's Medians • City Ind. Market Value �989 �990 1991 �992 1993 1994 7,808,365.562 8,2'Ib,115.290 8.385.923,323 8,013.445.348 7,9'18,3'13.99'1 7.842.707.970 1995 1996 1997 7998 '1999 2000 8,'134,540,'154 8.288.848,603 8.470.505,642 8.555,2�0,698 8,640.762.805 8.727,170,433 Note�lndicatetl Market Values for 1989 thravgh fA97 are based a� N�e Es6mated Market Yalue farthe Cdy divided by the sa/es 2tio for eaeh year as determined by the State DepaAment of Revenue. lndicated Market Value projections Iw f998 thrargh 2000 incluUe a 1% growC+factor over the previous year. -21 - -26- 9 1990 '1991 1992 1993 'f994 '1995 1996 1997 1998 1999 2000 Catendar Year -a�-Ramsey County �--City of Saint Paul --� Saint Paul Schools �--Saint Paui Port Authority 1989 7990 199'I �992 '1993 1994 1995 199G 7997 �996 '1999 2000 Calef War Year 9 Ramsey CouMy ■City of SaiM Paul � Saint Paul Schools �SaiM Paul PoK Authorily ��- l CREDIT RATING INDICATOR Debt to Indicated Market Value Definition and Purpose: Debt fo indicated market value is a basic credif rating indicator showing the tofal principal amount of debt to the fu(i value of real estate. As the ultimate source of repayment for this debt is the general property tax, with such tax levied against the value of all properties, this indicator depicts the overall debt burden as both debt and the resources for repayment (value) change over time. Low ratios are viewed as positive indicators. Moody's Medians are again listed for market value. (Please see description on Debt Per Capita.) Target Range: 4.50°fo to 5.50°l0 Trend: The combined debt to indicated market value increases from 2.76% in 1989 to 4.81 % in 1996 and then declines to 4.67% in 2000. In 1990 and 1992 through 1996, the indicator exceeds the Moody's Medians. Over the term, the school district represents a greater share of the indicator. Indicated market value, both historicaliy and estimated future, shows very little change. The Appendix to this report (page 45) provides detailed information about indicated market value. Summary: The combined debt to indicated market value indicator increases by 74% between 1989 and 1996 and begins to decline in 1997 through 2000. Moody's Medians for Overall Net Debt to Estimated Full Value'� 19$9 1990 1991 1992 1993 1994 1995 1996 Low 22% Median 3.8 High 7.2 1.7% 1.1 % 2.2% 2.2% 1.3% 3.0 4.0 3.1 3.1 3.5 7.2 7.8 7.3 9.2 9.9 1.8% 2.5% 3.8 4.1 7.3 10.0 ' The ranges ind'rcated above are tor cities with a population of 200,000 fo 299,999. Moodys does not specify certain credit ratings for the ranges. _ �' �t INDICATORS Investment in public infrastructure and the financing by debt results in numerous financial impacts on the participating jurisdictions and their citizens. The focus here is on a limited number of impacts which cover four fundamental financial areas: credit rating, property taxes, capital investment impact on operations, and the citizens' ability-to-pay. For each of these areas, indicators of impact have been determined, analyzed and positions summarized. These �� indicators provide basic proxies of the jurisdictions' individual and combined impacts. Each indicator is profiled as to its definition and purpose, farget range, trend and summary *' position. I The target range within this profile presents a policy position of this Subcommittee as to a positive performance objective. As a target range, the jurisdictions are permitted flexibility to respond to their overall policy objectives. Each indicator is separated into two components: historical, covering the period 1989 through 1996; and future, covering the period '1997 through 2000. , For credit rating indicators, the debt shown, with few exceptions, was developed to be i consistent with that debt included by the national credit rating agencies in computing their debt ratios. Detailed information relating to the types of debt included and exduded for this purpose is provided in the Appendix to this report. i i � ! i -25- -22- �� CREDIT RATING INDICATOR Debt Per Capita Definition and Purpose: Debt per capiYa is a basic credit rating indicator showing the total principal amount of debt to the total population. It depicts the overall debt burden as both debt and population change over time. Low ratios are viewed as positive indicators. The national credit rating agency, Moody's Investors Service, annually pubiishes its own indicators of credit rating burden and position, "Moody's Medians." These are established by population range categories forjurisdictions and are national in character. Moody's Medians are listed through 1996, the last year of publication. Target Range: $1,450 to $1,550 Trend: The combined debt per capita increases from $805 in 1989 to $1,470 in 1996 to $1,503 in 2000. In each year through 1996, they remain below Moody's Medians. Over the term, the school district represents a greater share of the indicator. Summary: Population, both historically and estimated future, remains basically unchanged. The combined per-capita debt indicator increases by 83% between 1989 and 1996, and by only 1% between 1997 and 2000. Moody's Medians for Overall Net Debt Per Capifa* 1989 1990 1991 1992 1993 1994 1995 1996 Low $ 645 $ 601 $ 329 $ 636 $ 664 $ 672 $ 894 $ 776 Median 1,123 1,082 1,276 1,500 1,418 1,477 1,581 1,623 High 2,236 2,315 2,543 2,940 3,069 3,594 2,576 2,949 ` The ranges indicated above are forcities wrth a population of 200,000 to 299,999. Moodys does nof specify certain credit ratings fo� the ranges. Credit Rating Indicator Total G.O. Debt Per Capita s�,soo si.aoo $1,200 s�.000 s800 S600 Saoo S2oo � f � �11-11 G.O. Debt Per Capita Ramsey CWMy City of SaiM Paui Saint Paul Schools Saint Paul Port Authaity Totat Debt Per Capita Moodys Medians 7989 5169 529 9'I 16 5805 51,123 1990 $176 551 214 14 $955 87,082 Ramsey CouMy 1� City of SaiM Paul - Safrrt Pau� Scrwols SaiM Paul Port Authority � Total DeM Per Capita Moodys Medians City Population 1995 1996 $192 $217 551 543 581 646 65 63 51,389 51,469 51,581 $1,623 1989 1990 2(i7.968 272,235 '1995 1996 271.120 271.120 1991 $174 537 219 12 5943 57,276 1992 $179 524 241 11 5954 57,500 1997 1998 $219 $728 539 578 667 681 62 61 51,487 E1,488 WA N!A 1991 1992 272,537 272,692 1997 1998 271.120 271.120 1993 $179 Sb0 276 9 51,013 51,478 1994 $182 552 410 66 51,270 51,477 1999 2000 $214 5215 500 486 ss3 �02 82 101 51,489 51,503 NiA N/A 1993 1994 272,243 271,660 1999 2000 271.120 271.120 Note: PopolaSon figures for 1989 and ?991 dvough 1995 are Mebopolitan Gounci! esfrmates. The 1990 populafron figure is trom fhe US. Census Bu2aa Popula6on projections for 1996 fhrough 2000 a2 frozen at the ?9951eve% -23- _24_ Ol o N ch < In tD r N rn O m rn rn m m m rn rn rn rn m W 6I W W W � W 61 � W O� N Calendar Year 9 Ramsey County ■ City M Saint Paul ❑ SaiM Paul Sohools � Saint Paul Port Authority � �1-�i Fsom: Joe Reid To: CCOUncil.COUNCIL.annc, Date: 1/24/97 12:29pm Sub3ect: Resolution 97-71 CCouncil.COUNCIL.bobbim, CC... This resolution seeks adoption by the City Council of the updated joint debt plan o£ the City o£ Saint Paul, Ramsey County, School District 625 and the Saint Paul Port Authority. The plan was prepared by the Joint Debt Advisory Committee, the inside cover lists the members of the committee. It has been reviewed and amended by the Joint Property Tax Advisory Committee (JPTAC) and has been £orwarded by the JPTAC £ox approval by each jurisdiction. As the lead jurisdiction, the City is the first to be asked to accept the plan as a joint wosking document for debt management. If you have any questions, please contact me or Bobbi Megard, the elected official who represented the City on the Debt Advisory Committee. Joe �,�p�-, �, �.�;� i '`' 'r a: � � . . , �. Presented By Referred To RESOLUTION CtN OF SAINT PAUL, MINNESOTA Commikee: Date Council File # �_7 � Green Sheet # �� 7 WHEREAS, in 1977 the City of Saint Paul, Ramsey Counry, Independent School District #625, and the Saint Paul Port Authority joined together and formed a Joint Debt Advisory Committee (JDAC) to control the shared community's general obligafion debt in a responsible manner while providing for the fuhue physical development of the City; and 6 WHEREAS, the 1993 Minnesota I.egislature created the 7oint Properly Taz Advisory Committee, � (7PTAC) wmprised of Ramsey County, the City of Saint Paul and Independent School District #625, a to foster coordinarion between the three jurisdicuons; on taz and spending matters; and io WHEREAS, in 1996 the 7oint Debt Advisory Committee was made a subcommittee of the JPTAC; i� and iz is WHEREAS, during 1996, the 7DAC was reconvened by the 7PTAC and established a debt plan for ia 1996 - 2000; now, therefore be it is ie RESOLVED, that upon recommendafion of Mayor Norm Coleman, the Council of the City of Saint i� Paui does hereby accept the recommendations of the 7PTAC and adopts the recommendations is contained on page 2 of the 1996 Capital Investment and Debt Management for Saint Paul L,ocal i9 Governments report. zo n Requested by Department of: Budget Office Adopted by Council: Date Adop 'on Certified by Cow By: `a- — Approved by Ma or: Date sy: L BY� � � . Director Form Approved by City Attorney By: , � ? �Z21 �`� Approved by Mayor foz Submission to Couneil By: ! �' � �d- (�SZn�� DEPARTF�I�TVOPPICF/COUNCII. DA]EINRiA1ID ' � , Financia�ser�ices 1/22/97 GREEN SHEET NO. 35873 COMACfPERSON&PHONE , Oj DEPARTMENIDRtECfOH O4 CIIYCOUNCQ, JoeReid 266-8553 M;� O ,— z , / crrrnrco�r � crrrc�cu MUS[BEONCOi1NCQ.AGE!]DABY(DA'LE) a� I J' BUDCECDIltECI'OR � FIN.BMGf.$ERViCPSDIR Y–' O3 MAYOR(ORASSI52 � Finance-Accounting TOTAL # OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATfJRE) acrsox�vesrm Approval of a resolurion to accept the recommenda6ons of the Joint Debt Advisory Committee (a subcommittee� of the JPTAC) and adopt the recommendations of the 1996 Capital Investment and Debt Management for Saint Paut Local Govemments report. RECOhf.�lIDAlIONS. Appmve(A) wRq�(R) PERSONAI. SERVICE CONTRACfS MOST ANSWER THE FOLLOWING QiJESTIONS: PI.ANNWGCOMMISSION _CIV➢,SHtVICECOMI.II55(ON l.Hasihispexson/fumevuworkeAunderacontractforihisdepaztment? cmco,�a.arrES _ YES NO ' s[ntr _ 2. Has ihis personlfum ever been a city employce? n�six[crco[mr _ YES NO sureoxrs wen�covrvca os�ECma+ 3. Does this person/fimi possess a sldll not nomially possessed by any cuaent ciTy employee� YES NO (Explain all yes answers on separate sheet and atfach to green sheet) . ssnn�rnvcr�cosl.eM, rssus, oeeoxivcmv �mo. wnar, vm�. wn=�, wny} , The resolution continues the practice of coordinaring debt plans for the Ciry, Ramsey County, Independent School District #625 and the �Port Authority in order to control the shazed community's general obligation debt in a responsible manner. The report estimates future , capital investment and property tax (general obligation) debt conditions for the period 1996 through 2000, within the corporate limits of � the Ciry of Saint Paul. The report forecasts indicators of the impacts of future debt issuance in the areas of credit rating, ability-to-pay, property�taxes and operations. For each of these indicators, the Subcommittee has established targe[ ranges against which, actual performance and future estimated outcomes can be evaluated. - ADVANiAGESffAPPROVSD � � . Coordination of debt payments, which will affect proper[y tas payers, and stable credit ratings. , � - DISADVANI'AGESIFAPPROVED: ' Noneknown. � �Q�3�� '��'��3 ��' ,� z��a��:�i� ` . ; '�,��;�p{' � ��t� � � �� , .�d � �� #�� DISADVANiAGESOPN01'APPI(OVED , - —.��_. Lack of coordinated planning could result in higher debt levels (and proper[y taYes) and/or larger fluc[uations in debteivice payments from yeaz to yeaz. TOTALAMOUNTOF'fMNSACT[OM Not3�liC2ble COST/REVENUEBUDCETED(CRiCLEONE) O NO FONDiNGSOURCE ACTIVITYNUQffiER PMANQALA'FOAMATiON (EXPLAA� �'Z-�� Y Joint Property Tax Advisory Committee Joint Debt Subcommittee Capital Investment and Debt Mana for Saint Paul Local Governments . . , ��-- � November 18, 1996 SUBCOMMITTEE MEMBERS Elected Officials City of Saint Paul: Saint Paul Public Schools: Ramsey County: Professional Staff City of Saint Paul: Saint Paul Public Schoois: Ramsey County: Saint Paul Port Authority: Financial Advisor Springsted Incorporated: Ms. Bobbi Megard, Saint Paul City Council Member Mr. Marc Manderscheid, Saint Paui School Board Chair Mr. Rafael Ortega, County Board Commissioner Mr. Joe Reid, Budget Director Ms. Martha Larson, Director Depar[ment of Finance and Management Services Ms. Shirley Davis, Treasurer 1�711s. Martha Kantorowicz, Debt Manager Mr. Ken Zastrow Executive Director of Susiness and Financial Affairs Mr. Larry Shomion, Chief Accountant Mr. James Van Houdt Director of Budgeting and Accounting Ms. Marion Holfy Special Projects Manager, Budgeting and Accounting Ms. Laurie Hansen, Chief Financial Officer Mr. David N. MacGillivray Principal, Director of Project Management Ms. Catherine R. Polta, Vice Presidsnt ��-�l � q,� _'� 1 The taxable net tax capacity for 1997 is a preliminary estimate. The taxable net tax capacities for 1998 through 2000 include a 1% growth factor over the previous year. The tax capacity for 1989 represents "gross" tax capacity, rather than "net" tax capacity. The change in the State property tax system from gross tax capacity to net tax capacity primarily resulted in lower values for homesteaded residential and certain agricultural property. Operational/Capital Finance InterEace Indicator Debt Service Tax Levy to Total Tax Levy Debt service tax levies are 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. Both debt service and total tax levies are net of HACA. �� l Table of Contents �� -� � SUMMARY AND FINDINGS ................................................................ RECOMMENDATIONS ....---��--�---�---� .................................................... INTRODUCTION.................� �--�---�-�-�--.................................................. MissionStatement ...................................................................... Strategies.........-�--� � .................................................................... HISTORICAL BACKGROUND ............................................................. METHODOLOGY........ ...........�---......................................................... Pa e s 1 2 3 3 3 4 4-6 SUMMARY OF PARTICIPANTS' INITIATIVES ..................................... 6 Cityof Saint Paul ......................................................................... 6-8 Saint Paul Public Schools ............................................................ 9-10 Saint Paul Port Authority ............................................................. 11-12 RamseyCounty ........................................................................... 12-14 CAPITAL INVESTMENT OVERVIEW ................................................... 14-15 THE ROLE OF DEBT ............................................................................ 16-21 INDICATORS ........................................................................................ Credit Rating Indicator — Debt Per Capita ................................... Credit Rating Indicator— Debt to Indicated Market Value............ Ability-To-Pay Indicator — Debt Service Levies Per Household ... Ability-To-Pay Indicator — Tax Bill for Debt Service Tax Levies ... Operational/Capital Finance InterFace Indicator— Debt Service Tax Levy to Total Tax Levy ................................ 22 23-24 25-26 27-32 33-36 37-41 APPENDIX............................................................................................ 42-47 -47- ��-�� SUMMARY AND FINDINGS The Joint Debt Advisory Committee — an ad hoc group of elected officials and staff of the City of Saint Paul, Saint Paul Public Schools, Ramsey County and the Saint Paul Port Authority — has been active on a periodic basis for twenty years. More recently, due to state legislative mandates, the City of Saint Paui, Saint Paul Public Scfiools and Ramsey County have formed the Joint Property Tax Advisory Committee (JPTAC) and initiated a number of cooperative ventures to control property taxes in corporate Saint Paul. The Joint Debt Advisory Committee has become a Subcommittee of the JPTAC. This report of the Subcommittee will be forwardeci to the participating jurisdictions by the JPTAC with a recommendation to adopt it as a management tool for each jurisdiction, since the report makes decisions about capital improvements and debt in the years 1997 through 2001. This report estimates future capital investment and property tax (general obligation) debt conditions for the period 1996 through 2000 within the corporate limits of the City of Saint Paul. This report also forecasts indicators of the impacts of future debt issuance in the areas of credit rating, ability-to-pay, property taxes and operations. For each of these indicators, the Subcommittee has established target ranges against which actual performance and future estimated outcomes can be evaluated. The principle findings of this report are: . The aggregate level of capital investment for ail four jurisdictions is estimated to decline from $152,324,900 in 1996 to $90,776,800 in 2000. . The aggregate level of general obligation debt for ail fourjurisdictions is estimated to rise modestly from $398,352,000 in 1996 to $407,570,900 in 2000. . The combined credit rating debt burden indicators are estimated to remain relatively constant from 1996 to 2000. . The ability-to-pay indicator of combined debt service property tax levies per household is estimated to rise from $321 per household in 1996 to $392 per household in 2000. . The property tax indicator of the combined debt service tax bill on two representative residentiai properties with market values of $70,000 and $100,000 is estimated to rise on average by 4.4% per year. . This report estimates that future debt service tax levies for the period 1996 through 2000 do not change markedly the balance between property taxes levied for debt service, and those levied for operations for ali four jurisdictions. This report also contains a number of other findings for individual participating jurisdictions, as well as the relative conditions among jurisdictions. These findings are best known through a complete review of the report. a�-11 amount applied is the same percent detailed in the footnote for Table V. The number of households and the number of persons per household, as shown below, are based on Metropolitan Council estimates for the City for 1989 and 1991 through Z005 and U.S. Census figures for 1990. Projections for 1996 through 2000 are frozen at the 1995 level. Number of Households – Citv of Saint Paul 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 111,283 110,249 110,424 110,476 110,430 110,347 110,355 110,355 110,355 110,355 110,355 110,355 Tax Bill for Debt Service Tax Levies – Saint Paul Resident Persons Per Househoid – City of Saint Paul 2.37 2.37 2.37 2.37 2.37 2.37 2.37 2.37 2.37 2.37 2.37 2.37 Debt service tax levies for each entity, as described above, are divided into the total taxable net tax capacity for the City for each year. The resulting tax rate is then applied to the tax capacity of a$70,000 home and a$100,000 home to determine the projected tax bill for debt service levies oniy. The City's taxable net tax capacity and the taxable net tax capacity for a$70,000 and a$100,000 home is as follows: Payable Year 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 City of Saint Paul Taxable Net Tax Ca�aciN $232,147,532 191,430,438 195,340,203 185,397,217 180,614,331 172,801,915 169,558,493 173,323,404 180,188,972 181,990,862 183,810,770 185,648,878 $70,000 Home Taxable Net Tax Capacitv $1,526 720 720 700 700 700 700 700 700 700' 700' 700* $100,000 Home Taxable Net Tax Capacitv $2,276 1,320 1,320 1,280 1,280 1,280 1,280 1,280 1,280 1,280' 1,280' 1,280� ` Assumes no change in the State properly tax system affecting c/ass rates applied to residential homestead property. '�- -46- �� i Table VI — Overlapping General Obligation Debt as Percent to Total The percentages shown in Tabie VI are based on the debt figures used in Table V. Credit Rating Indicators Total General Obligation Debt Per Capita This indicator uses the same debt figures developed in Table V. City population figures for 1989 and 1991 through 1995 are Metropolitan Council estimates. The 1990 population figure is from the U.S. Census Bureau. Population projections for 1996 through 2000 are frozen at the 1995 population level. Total General Obl�ation Debt to Indicated Market Value This indicator uses the same debt figures developed in Table V. "Indicated Market Value" is also known as true or full market value. The IMV is based on the County Assessor's Estimated Market Value for the City divided by the sales ratio for each year as determined by the State Department of Revenue. The sales ratio represents the overall relationship between the Estimated Market Value of property within the community and the actual "arms length" selling price when the property changes hands. The sales ratio for projected years 1997 through 2000 has been frozen at the current level. IMV projections for 1998 through 2000 inciude a 1% growth factor over the previous year. City Estimated Market Values and the applicable sales ratios are as follows: Payable Year 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 ' Preliminary. Ability-To-Pay Indicators EMV 7,230,546,510 7,418,249,107 7,589,260,607 7,484,557,955 7,443,215,152 7,379,988,200 7,394,297,000 7,418,519,500 7,581,102,550' 7,656,913,575 7,733,482,711 7,810,817,538 Debt Service Levy Per Household Saies Ratio 92.6% 90.3 90.5 93.4 94.0 94.1 90.9 89.5 89.5 89.5 89.5 89.5 � 7,808,365,562 8,215,115,290 8,385,923,323 8,013,445,348 7,918,313,991 7,842,707,970 8,134,540,154 8,288,848,603 8,470,505,642 8,555,210,698 8,640,762,805 8,727,170,433 Debt service ievies are the tax levies spread by each entity annually to pay for debt service solely supported by taxes. The debt service levies are net of Homestead and Agricultural Credit Aid (HACA), paid directiy to the entity by the State. The Ramsey County debt service levies represent only the portion spread on the City of Saint Paul tax base. The proportional �� -�t � RECOMMENDATIONS The Subcommittee recommends that: . Target ranges for three indicators be established for the term of this report: . Combined debt per capita not to exceed a range of $1,450 to $1,550; . Combined debt to indicated market value not to exceed a range of 4.5% to 5.5%; . Combined debt service property tax levies per househoid not to exceed a range of $350 to $400. . The governing boards of all four organizations represented on the Joint Debt Subcommittee adopt the report as a management tool for decision-making regarding capital improvements and debt for the next five years; and . The City of Saint Paul, Saint Paul Public Schools, and Ramsey County expand their current efforts at collaborative planning for joint use of current and future facilities, as well as opportunities to transfer facilities among them as facility needs change; and . The participating jurisdictions meet annually to update this report and evaluate compliance within the adopted target ranges. -45- -2- ��-� r � - a�_� 1 INTRODUCTION The City of Saint Paul, Independent School District 625 (Saint Paul Public Schools), the Saint Paui Port Authority and Ramsey County have formed the Joint Property Tax Advisory Committee and its Joint Debt Subcommittee to address property tax levels and the role of debt. This effort is a continuation of a long-standing tradition of cooperation among these jurisdictions, beginning in 1977, to proactively manage their combined debt position. As a new committee, the Advisory Committee and Debt Subcommittee have reviewed both their objectives and strategies. The Subcommittee has adopted the following Mission Statement and strategies: Mission Statement The City of Saint Paul, Independent School District 625 (the Saint Paul Public Schools), the Saint Paul Port Authority, and Ramsey County agree to work together to: coordinate the financing of the area's capital needs, keep capital expenditures within agreed upon debt level targets, and jointly plan for meeting the capital needs of each jurisdiction. Strategies To achieve the goals set forth in the Mission Statement, the four jurisdictions agree to: • Maintain overlapping general obligation debt ratios within a range approved by the four jurisdictions for the five-year period of 1996 through 2000; • Be responsible for notification to 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 the immediate debt-related conditions of the four jurisdictions which would impact property taxes of Saint Paui residents, and take appropriate action to remain consistently within the debt level ranges approved by the four jurisdictions; • Identify annually intermediate to long-range capital spending and debt conditions which would impact Saint Paul residents' property taxes, and fit proposed spending to the group's debt management goals; and • Exchange information and expertise during each jurisdiction's capital improvement budgeting process, such that the jurisdictions can eliminate duplication, share facilities where appropriate, and provide the taxpayers with the greatest return for the jurisdictions' capital improvements. Table V— Total General Obligation Debt by Issuer Total general obligation debt by issuer consists of the foilowing types of debt: Rams� CountX Consists of ali County general obligation debt outstanding as of December 31 of the year shown, with the exception of library and watershed bonds paid by taxes coflected all or partially 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. 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 taacable net tax capacity. The full debt amount and applicable Saint Paul share is as follows: Payable Year 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Total County G.O. Debt $ 91,550,000 93,320,000 92,310,000 95,020,000 95,005,000 97,985,000 104,265,000 119,925,000 122,965,000 129,880,000 123,550,000 126,070,�00 % Applicable to Saint Paul 49.6% 51.4 51.4 51.3 51.2 50.4 49.8 49.1 48.3 47.6 46.9 46.2 Saint Paul Portion of County G.O. Debt 45,408,800 47,966,480 47,447,340 48,745,260 48,642,560 49,384,440 51,923,970 58,883,175 59,392,095 61,822,880 57,944,950 58,244,340 Projections for the percent applicable to Saint Paul in 1997 through 2000 assume a continued reduction in Saint Paul's share of the County's value as a whole by 0.7% each year. City of Saint Paul Consists of ali City generat obligation debt outstanding as of December 31 of the year shown, including general obligation debt supported by special assessments and tax increment. General Obligation Water and Sewer Revenue Bonds (paid by enterprise fund revenues) and Como Conservatory Bonds, which are paid by funds in an escrow account, are excluded. Saint Paul Schools Consists of alI School District general obligation debt outstanding as of December 31 of the year shown, including Certificates of Participation which are secured by the full faith and credit and taxing power of the District. Saint Paul Port Authority Consists of all Port Authority general obligation debt outstanding as of December 31 of the year shown and excludes all revenue debt. -3- ' -44- O O N Z � Z � Z ^ c �c0 ¢ O � (7 = a J � U fC C F O '= a QZ 6 Z W a � � 7 N N a ol N �I A m) m mI A mt mI m � � �I 0 �I rn N{ �) W AI ol � ml W 0 0 0 0 0 0 0 0 0 0 o n o r 'OOG (V O �D In O O O � pI N ' 000 N O �O 0000 00 o CJ O O O � O N ' O O O N OI N ° o ° oo ° o ° o ° o ° o m o 0 0 o m r O O O N O W � O O O N O A ' O O O N OI � O O O O O O O � 0 0 0 �- O 19 W 000 t� O b �0 00 W O t0 V O O O � O I l0 0 0 0 0 0 0 0 0 0 o n o 0 00 0�- n cu w ^OOb Nt� th M ° orn" m � o� o a v< o a o � 0000 �ol � � O O O fV O � O O O O � O N no 00 o co ^ O O O M G V °SSo 00 ° r000 o �n w �- 0 0 0 N O O � N 00 00� o ° o o ° o 0 0 o ^ o o � O O O O I O O O O O O O O D O O O ' O G ` So 00 0 O O O O O O' O C ' 00 0 0• o 00 00l o 0 0 0 0 0 o� oo, ' O O O O O O O O O O O O D O O N N 0 0 0 0 0 O O O O O O O G O O N M � O O O O O 0 0 0 0 0 O O O O O O O O O O N N Q 00 0 0l o 0 0 0 0 0 0 0 0 0 0 Q� oo M O O O O O on ooI r G N O O ^ O O O ol O c w o o w 0 o a o e 00 <S < O W N O M -< 0o Sol S 00 00 0 O O O O O �no 0000 000 ooI �n o � m o 0 0 0 0 0 0 0 o u� n o � <o 000 0 0 0000 �n u� n N O O O O O O O O O' ^ b 1 A O O O O O O O O O N I O O � N O O O O O O O O O O W O < O O O O O O O O O O V O N O 00 00 O 000 Cf t0 �o 0000 00000 � o mo 0000 00000 � o V O 0000 OOtO00 O O N N O O O O O O O � O O ' O � a �nc c000 occcc{ e� c �o 0000 0000o n o ro 0000 00o ino w o ro N O O O O O O O N � O A O W M Wo 0000 00�00� o 0 O O O O O O O 1 A O O 1� O W N O O O O O O O O O O N O N N O O O O O O O^ O O � O h n O O O O O O O N O O O N O V] O O O O O O 0 O O O < O N O 0 0 0 0 O< 0 0 0 O O t0 N O O O O O O W O O O O N � n O O O N H O O O O O O O O OI O O O 1� O O th O O O 1� O ^ t0 O O t7 N O O 0 O O O ? 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W� fit -°�j m � 7 v m o � m m U °' o v m - o m t m�: � o r c... a a ¢ � m¢ o=(A £ W J o m LL�= Y o m o"> °�° d o m a � ¢ ¢ a (J R � L Co y Z c y m ¢ F� o c Q a� m a c U � Q �� n� c c °a :: a c�i .E I� `o Q y � � ¢ x� m m o�£ 3 O � e i. m y m O � LL � U o¢> v Z m s � c r o O � O N NF «5 c'�a O f 6f q• >y�LL F �f �2 c� m c1 a� � 1- Q Z � O L m m m?�� 0 7 F r m m m m m 7 N L c � p Q o d� m 4i ¢�° a � F 2 Z�a(>F6�cNU N ZQ�1�¢ Z N�QUUO U�U� y Z� p r o � I I I c � i Q o I � � I a o 1 I � � � � � ¢ m U a` ii N a` ¢ a` y -43- �� HISTORICAL BACKGROUND � " _ � \ In 1977, these four jurisdicfions - the City of Saint Paul, Saint Paul Public Schools, Ramsey County and the Saint Paul Port Authority - pioneered the concept of coordinated debt management. Their objectives were to mitigate the costs of capital financing by coordinating their efforts. They received nationai recognition in 1989 by the Govemment Finance Officers Association (GFOA) with its Louisville Award for innovation in financial management and the Award for Excellence for debt management. The Louisville Award is given rarely and only in recognition of exceptionat creativity in addressing public sector financial management issues. In addition, the national credit rating agencies have recognized this effort on an ongoing basis. This program has also become the basis for other major public institutions to indicate coordinated capital investment plans. METHODOLOGY 7his report addresses both public capital infrastructure investment and the role of debt. Debt is viewed as a financing tool, used to accomplish the overall objectives of reacting responsibly to the dual demands of infrastructure replacement and accomplishing new initiatives. Therefore, while much of the report focuses on debt managemeni, capital spending is also summarized to show the overall leveis, uses and sources of funding. The report covers two distinct periods: Historical for the years 1989 through 1996 and future for the years 1997 through 2000. These time periods permit a long-term perspective for the trends, occurring both within jurisdictions and combined among the jurisdictions. The report utilizes indicators to symbolize the impacts of debt in a number of categories. The Subcommittee reviewed a range of potential impact areas, and decided to monitor four areas: credit rating, property tax, operational/capital financing interFace, and abitity-to-pay. Within each of these four financial impact categories, one or more indicators show specific trends over the two time periods. Each indicator is profiled in four ways: definition and purpose, target range, trend, and summary. The Subcommittee has established target ranges for each indicator. The target ranges are policy objectives that determine individual and combined compliance with the objectives of the Subcommittee. The established target ranges will remain constant for the entire term of this study. These constant target ranges wili be used over the term of the study to evaluate the actual performance of the participating entities. The Subcommittee recognizes that, based on the needs of the participating jurisdictions, actual performance may cause one or more indicators to exceed their target ranges. The Subcommittee's objective is to manage actual performance such that a majority of the indicators comply with their target ranges. The informationai sources for establishing the indicators are the participating jurisdictions. Wherever possible, information has come from financial reports, capital and operationai 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. Specificaliy, as to the debt information, the approach has been to include, as much as possible, only that type of debt which corresponds to that used by the credit rating agencies, or the debt that has a potential impact on property taxes. Therefore, certain types of debt are not included in this report, most notably revenue-supported debt issued primarily by the City and Port Authority. Detaited information relating to fhe types of debt included and excluded for each jurisdiction is provided in the Appendix to this report. For the City, general obligation debt used for the credit rating indicators (debt per capita and debt to indicated market value) excludes general obligation debt supported by water and sewer enterprise funds and Como Conservatory bonds (which are escrowed). General obligation debt used for the ability-to-pay indicators and the operational/capital finance interface indicator includes only debt paid by taxes, excluding revenue debt and general obligation debt supported by special assessments, tax increment, utility revenues and escrowed funds. The County debt exciudes $3,465,000 Certificates of Participation issued in April 1996. The Certificates are payable from sublease payments made by Ramsey Action Programs, Inc., (a non-profit community action agency), to the County. The Certificates are not secured by the fuil faith and credit of the County. The School District debt does include Certificates of Parficipation, which in the DistricYs case, are paid from tax levies and are secured by the full faith and credit of the District. The Port Authority debt consists of general obligation debt issued in the 1960's and 1970's, and a 1994 general obligation issue, all of which are payabie solely from ad valorem taxes spread on all taxable property within the City. The general obligation debt is backed by a pledge of the full faith and credit of the City, and tax levies were certified upon the sale of the bonds. All other outstanding debt of the Port Authority is payable solely from various revenue sources, including revenues generated by financed projects, tax increment, limited taxes and reserve funds. Also, the report covers only the corporate limits of the City of Saint Paul, and as such, only a portion of Ramsey County is included in the study area. This situation causes iwo adjustments in the amount of County debt included in the study: first, the County's General Obligation Library Bonds of 1989 and 1994 and all Watershed Bonds are excluded because the issues are repaid by taxes collected exclusively outside of Saint Paui or by taxes coilected in special taxing districts which are all or partially outside of Saint Paul; and second, the County's remaining eligible debt is pro-rated based on the proportion of City property tax base (tax capacity) in the County, both historiral and projected over the study period. For 1996, the share is 49.1 %. No attempt has been made to identify and segregate either capital spending or debt into those improvements occurring within the City. The tables which show the County's annual capital investment represent County-wide capital spending. The operationallcapital finance interface indicator, showing the County's debt service levy to the total tax levy, represents full County- wide levy figures, not just the portion spread on the Saint Paul tax base. The ability-to-pay indicators, however, are based on debt service levies that have been reduced to represent only the City's share of the levy. �t�- � � APPENDIX This Appendix contains statistical data, sources and detailed footnotes which support the analysis contained in this report. Table I— Total Annual Capital Investment Total capital spending for each entity is based on capital improvement budget documents for historical data and staff projections for years 1997 through 2000. Tables II/IV — Annual General Obligation Debt Issued to Annual Capital Investment In addition to capital spending data referenced above, annual general obligation debt issued by each entity is listed on the following page and inciudes all general obligation debt backed by the full faith and credit of the issuing entity. The only exclusions are Generai Obligation Library Bonds and Watershed Bonds issued by Ramsey County which are payable from taxes collected all or partially outside Saint Paul. -5- -42- �� -� � Each jurisdiction has maintained their high credit ratings for general obligation bonds. The ratings are as follows: General Obligafion Debt Only Moody's Investors Srandard & Poor's 7urisdiction Service Ratings Services City of Saint Paui Aa Aq+ County of Ramsey Aaa Aq+ Independent School District #625 Aa AA (Saint Paui Schoois) Saint Paul Port Authority Aa AA+ This page intentionaily left biank. The Appendix contains statistical data, sources and detailed footnotes, which support the analysis contained in this report. Finally, the report includes both conclusions and recommendations of the Subcommittee with the intent of providing direction to accomplish both the Subcommittee's and the doint Property Tax Advisory Committee's objectives. SUMMARY OF PARTICIPANTS' INITIATIVES Each participating jurisdiction is making infrastructure investments to accomplish their specific initiatives. These initiatives are based on the individual conditions and objectives of each jurisdiction. This section summarizes by participant these conditions, objectives and initiatives. City of Saint Paul Saint Pauf is the State Capital and Minnesota's second iargest city. The City covers an area of 56 square miles and is situated wholly in Ramsey County. The area has a balanced and diversified employment picture, with no single industry sector dominating. Saint Paul's 1990 U.S. Census figure of 272,235 indicates a stabilization of the City's population. The City has initiated a number of public policies, in pursuit of which major capital investments have been and are anticipated to be made. Over the years, Saint Paul has built an extensive system of police and fire stations, parks, recreation centers and other recreation facilities, libraries, streets, bridges, and sewers that require maintenance, replacement, expansion and additions. Enhancement of the Downtown and the Riverfront Saint Paul's revitalization of its central business district and riverfront is focused on defining appropriate new markets for a downtown core that are realistic and sustainable, such as emphasizing office space for key service businesses and public employers. The City is also -41 - -6- �'� - � working to shift the market perceptions about the riverfront away from the heavy industrial uses of an earlier era, toward an accessible, environmentally sound and economicaliy viable site for a variety of community attractions and commercial enterprises. The City continues to place its emphasis on development efforts that will demonstrate measurable growth on the tax base and in the number of jobs created. Wabasha Bridge The Wabasha Bridge is a$36 million replacement project that will be completed in 1998. Funding for the bridge, one of 280 bridges in Saint Paul and the fourth major Saint Paul bridge across the Mississippi River that has been replaced or renovated in the past ten years, has come from the issuance of City general obligation bonds, as well as State and federal financing. The bridge is the chief link between the Capitoi Complex and the riverfront. It is aiso expected to serve as a major commercial intersection between the downtown core, the Capitol, the river and the West Side of Saint Paul. Science Museum of Minnesota The Science Museum made a major commitment to downtown Saint Paul by choosing a site on the downtown side of the Mississippi River (ailowing a potential link to the riverfront for the first time). In return, the City has made financing commitments of up to $14 million to the Science Museum, artd the State has committed approximately $30 mitlion to this project. The Science Museum will provide a substantial amount of the remaining funding through private contributions. This new $95 million facility, located between the Civic Center and the rivertront, is expected to begin construction in 1997 and promises to be one of the nation's premier science museums. Attendance is projected to increase from approximately 840,000 visitors annually to up to 1.5 miliion visitors annually. Employment at the facility is expected to increase from the current figure of 310 FTEs to 450 FTEs after the new facility is compieted. Civic Center F�pansion In November 1993, the City's HRA issued $65 miilion Sales Tax Revenue Bonds to finance capital costs for the expansion and improvement of the Sainf Pau! Civic Center complex, including additional exhibition hail space totaling 75,000 square feet, 25,000 square feet of new meeting rooms and a 25,000 square foot banquet facility. The groundbreaking took place in November 1994. Project completion is scheduled for 1997, and the facility will continue to operafe during construction. The principle source of payment of the Sales Tax Revenue Bonds is a portion of a City-wide one-half cent sales tax, which became effective September 1, 1993. In addition to the expansion and improvement at the Civic Center, the City's HRA is undertaking the construction of a 450-space parking garage located beneath the new exhibit hall. The new garage was financed in 1995 from proceeds of $7.5 miliion Parking Revenue Bonds, $1.5 miilion Subordinate Notes and equity from the City's Parking and Transit Fund of $1,Q53 million. The debt will be payable from revenues of the City's Parking and Transit �und. The garage is scheduled for completion in early 1997. Enhancement of the Neighborhoods Neighborhood Investment The City°s neighborhoods have long been one of its strongest, although sometimes less visible, assets. Neighborhood retail and commercial activity is strong, and continues to improve. -7- �1'l -'1 � Operational/Capital Finance Interface Indicator Debt Service Tax Levy to Total Tax Levy - Ramsey County �oo.o°� 90.0% 80.0% �o.o�� so.o°� 50.0% 4o.o°k 3o.o°k 20,0% �o,o�ro o.o% 1959 1990 1991 1992 1993 '1994 '1995 �996 1997 '1998 1999 2000 Payable Year Ramsev Countv Debt Service Tax Levies Total Tau Levy D/S Levy to Total Tax Levy t9ss �sso $6,048,031 $6,504,985 $106,233,714 $�11,808,883 5.7% 5.8% 1991 �992 1993 1994 $9,563,751 $10,624,554 $10,453,192 $9,934,215 $127,125,508 $134,23'I,S49 $134,345,396 $139,060,602 7.5% 7.9% 7.8% 7.1% '1995 lsss '1997 7998 7sss 2000 DebtServiceTaxLevies $9,238,680 $10,625,352 510,73'I,'100 $13,02'1,138 $'14,503,975 $16,200,931 Total Tax Levy $140,300,667 $143,084,573 $158,040,226 $169,728,586 $180,441,492 $193,621,324 D/S LOVy to Totel TaX LeVy 6.6% 7.4% 6.8% 7.7°k 8.0% 8.4% Note: The tax levy amouMs shown above represent levies spread on all taxable properiy within Ramsey County, not just a portion af6ibutable to the City of Saird Paul. � ��-� Operational/Capitai Finance interface Indicator Debt Service Tax Levy to Total Tax Levy - Saint Paul Schools 1 oo.o^io so.o°io so.o^� �o.o^io so.o°� so.o°io ao.o°ro so.o^io 20.0°� �o.o�io o.o°ia 1989 1990 1997 '1992 �993 1994 1995 '1996 1997 1998 1999 2000 Payable Year Saint Paul Schools Debt Service Tax Levies Total Ta�c Levy DIS Levy to Total Tax Levy 1989 '1990 '1991 $6,322,838 $7,'102,000 $5,575,000 $90,180,640 $81,542,977 $92,530,664 �.o�ro a.�� s.o�� '1992 '1993 '1994 $1,977,000 $2,759,000 $7,51'1,638 $99,405,585 $98,856,365 $'104,733,603 2.o°io 2.a^� �.2°� 1985 't996 't997 'f998 1999 2000 DebtServiceTaxLevies $10,426,000 $'15,�4�,000 $16,8�4,000 $'17,519,539 $'19,305,978 $20,698,892 TotalTaxLevy $1'I'1,431,635 $120,234,734 $124,450,000 $122,683,539 $126,387,978 $13'I,50'1,892 D!S LeVy to Totdl TaX Levy 9.4% 12.6% 13.6% 14.5% 15.3% 15.7°k Note: Levies collected in tire years shown above are athibutable to the Districf's fiscal year ending June 30 of the next calendar year. For example, taxes collected in 1995 are used in the DistncPs fisca/ year ending June 30, 1996. -39- a�r-�� Encouraging this activity has a double benefit of both strengthening the tax base and providing safe and thriving neighborhoods. The City has adopted a street maintenaRCe program that in the next 13 to 15 years witl pave alt remaining unpaved or older, paved streets in Saint Paul's neighborhoods. Approximately $6 million will be committed in 1996 and 1997, and $8 miilion in 1998, 1999 and 2000. The City will seek to target its other development dollars in areas receiving the paved streets and related public improvements. Midway Marketplace The first stores at Midway Marketplace opened their doors in the fall of 1995, fundamentally changing the retail market in the Midway neighborhood. Montgomery Wards, Ward's Auto Express, CUB Foods, PetSmart, Paper Warehouse and Mervyn's of California are open now; K-Mart is expected to open in the spring of 1997. Upon completion, this development will be a $45 million, 482,554 square foot "power center" that is expected to retain 500 permanent jobs, create 1,500 new permanent jobs, and support up to 650 construction jobs. Preservation of City Infrastruature Preserving Existing Facilities Each year, the City capitai 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. The 1996 and 1997 budgets have committed $1 million to this purpose. Capital Improvement Process City departments, District Councils and other parties annually submit proposals for capital projects. These proposals are evaluated and prioritized by the Saint Paui Long-Range Capital Improvement Budget Committee (CIB Committee) and its task forces. Based on the recommendations of the CIB Committee, the City Council adopts an annual capital budget and a five-year'Tentative Program of Commftments," which estimates future appropriations needed to complete initiated projects. Projects are categorized with one of 11 capital functions: Streets, Street Lighting, Traffic Engineering, Bridges, Sewers, Parks and Open Spaces, Libraries, Housing and Economic Development, Police, Fire and Safety, and Special Facility Support. 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 careful and thorough analysis of each capital improvement proposal, including the long-range impact on operating costs and revenue generation. It is essential to recognize the close tie between the City's operating and capital improvement budgets. New or expanded facilities financed through the capital improvement budget may increase the need for operating budget resources. Conversely, appropriate capital investments can decrease operating expenses. But operating budget decisions, such as deferral of maintenance, can also affect the capital budget. � � `l, �� Saint Paul Public Schools Current Conditions The Saint Paul Public Schools presently own or lease a total of 79 facilities comprising a total of 6,948,741 square feet. Approximately 50% of facilities owned by the District are more than 50 years old. A recent facility utilization survey indicates that, since 1987, the District has added 264 elementary classrooms for a total of 1,215, with a capacity of 25,955 students. At the secondary level, the functional capacity has been determined at 7,987 students forjunior high/middle schools and 12,302 at the senior high school (including Arlington High School). As of October 1, 1996, the District had a total enrollment of 41,664 students with 25,263 in the elementary level and 16,401 in the secondary levels. The total enroliment number does not include students enrolled in the following programs: full-time special education, area learning center and evening high school. The District maintains comprehensive facilities for Special Education and serves more than 5,000 students from newboms to 21-year-olds, in thirteen areas of etigibility. Community Education uses several facilities within the District — some of them leased — and also utilizes space donated by businesses, for services that include: General Programs, Family Education, Employment and Training, Adult Literacy and Special Needs. Trends and Special Programs Several trends in space utilization merit further consideration and will continue to place demands on District space. Some of these trends are: special educafion (including early childhood special education), family education/leaming readiness, desegregation/reassignment policies, TESOL (Teaching Engtish to Speakers of other Languagesj growth, computer technology proliferation, and such miscellaneous program growth as all-day kindergarten, parent resource centers and in-school suspension. Chief among all trends, however, is population growth. Within five years, the District is projecting a shortage of space for approximately 1,000 students at the elementary level. The District does, however, project that it will have adequate space in the junior high/middle schools, and the senior high school space needs will be met with the opening of Arlington High School in fall 1996. The District has adopted and recently revised a District Technology Plan that has clearly defined objectives, and a prioritized list of specific actions and programs needed to achieve these objectives. In 1994, the District also adopted a technology improvement plan which provides over a three-year period for upgrades to communication systems, compufer networks and video systems. The District's most recent estimate for implementing this pian is more than $17 million. There has also been a concerted effort to increase energy conservation throughout the District. Since 1982, the District has invested more than $2.5 million (a significant amount of which was grants) in energy projects, and now realizes an annual energy savings of almost $154,000 as a result of those investments. In addition, the District has entered into a Peak Controlled Rate Program with Northern States Power Company, and will subsequently realize approximately $97,000 ann�ally in electrical cost savings. !n spite of growth of the physical plant, the District has cut its energy budget by $500,000 in the last three years. a�- �1 Operational/Capital Finance Interface Indicator Debt Service Tax Levy to Total Tax Levy - Cify of Saint Paul �oo.o�� so.o^� ao.o�� o.o^� so.o�� so.o�� ao.o�� 30.0% zo.o% 10.0% o.o% Citv of Saint Paul De6t Service Tax Levies TotalTax Levy D/S Levy to Totai Tax Levy Debf Serviee 7ax Levies Total Tax Levy DIS Lery to Totai Tax Levy 1989 '1990 1991 1992 1993 1994 �995 1996 'i997 '1998 1999 2000 Payabie Year 1989 1990 7991 $13.082.792 $10,989,360 $�1.496.813 $53,773,946 $58.282.582 $63.320.821 24.4°k 18.9°k 18.2% 1995 1996 1997 $}4.578,338 $'l4,212.875 $'l4,374.387 $65,348,085 $64,690,287 $64,699,711 22.3% 72.0% 722% 1992 $12.489.955 $64.574.549 19.3°h 1998 $'l4,575,685 $64.734.198 72.5°k 1993 $12.711,327 $65,663,448 19.4°h 1999 $14.G30,'!02 $66,045,477 Y22°k 1994 $13,078,174 $65.617.967 19_9% 2000 $74,367.699 $67.38:i.134 21.3% � -38- `��f OPERATIONALlCAPITAL FINANCE INTERFACE INDICATOR Debt Service Tax Levy to Total Tax Levy Definition and Purpose: The total tax levy has an operational component and a debt service compone�t. This indicator shows the proportional share which 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 situation. Target Range: The ievel of this indicator should differ for different types of jurisdictions. No target ranges were established with the expectation that individual jurisdictions would address their own situations. Trend: The City shows a fluctuation between a low of 18.2% in 1991 to a high of 24.4% in 1989. The Schooi District shows a low point of 2°lo in 1992 to a high point of 15.7% in 2000. The County shows little variation, moving from 5.7°/a in 1989 to 8.4% in 2000. Summary: The Port Authority has been excluded because it relies largely on other revenue sources and uses tax levies for limited purposes. The City and the County show a relatively narrow band of variation (less than 7% and 3%, respectively). The School District is estimating a far larger increase in the proportion of its levy dedicated to debt service. �� -�t � Funding/Population The Plant Planning and Maintenance Department manages the capital funds for all facilities. In 1995/96 the revenue firom tax levies and bond sales totaled approximately $27.6 miliion. In addition, the District recently sold lease participation certificates in the amount of $50 million to finance the construction of a new high school. Several major factors contributing to the need for construction, remodeling, capital improvements and deferred maintenance in the District inciude: aging buildings, program changes, code requirements, environmental safety mandates, energy conservation and, of course, increased student population. Building construction projects recently completed or under construction include: the River Front Educational Center (completion of the top three floors); additions to Prosperity Heights, Sheridan, Horace Mann, and Battle Creek Elementary Schools; additions to Ramsey Junior High School and Harding and Como Park Senior High Schools; and construction of the Ronaid M. Hubbs Center for Lifelong Leaming and Arlington High School. The District has launched a five-year plan to upgrade all facilities to ensure handicapped accessibility and will be substantially complete in 1998. Capital funding projections indicate a decrease in reve�ue. While the Plant Plan�ing and Maintenance Department will have revenue available from Alternative Bonds ($11 million) each year, the DistricYs authority to sell $9 million per year in Capital Bonds expired in 1996 and is the principle reason for the indicated reduction in revenue. Though several projects already have been completed or are planned under the capital bonding program, many outstanding needs will not be met unless additional bonding authority is granted or a new revenue source is identified. Long Range Facilities Plan The Long Range Facilities Plan acknowledges that the Saint Paul Public Schools continue to face growing enroliment, especially at the elementary school level. The District must plan for additional elementary space or implement a significant change in utilization practices at the elementary level within two to three years, or both. AII space decisions must consider the District's adopted commitment to lifelong learning. The most critical unfunded needs ident�ed include space for elementary students and complete technology upgrades. A longer-term projected space shortage at the senior high school level is also anticipated, but is not estimated at this time. This latter space shortage is to be expected given the increasing population at the elementary level, and the DistricYs adopted goal of significantly reducing the number of high school drop-outs. The number of Special Education students requiring residentiai, community-based and mainstreamed environments is increasing yearly. The District anticipates additional space will be needed to accommodate these expanding programs. As the DistricYs enrollment grows, there continues to be a pro6lem in finding sufficient artd adequate space for Community Education activities. The relocation of family education administrative functions, presently located at 740 York Avenue, is expected to cost $72,000 per year in lease costs. -37- -10- �-� -�, i Saint Paul Port Authority The Saint Paul Port Authority, organized in 1932 and existing under the laws of the State of Minnesota, is a redevelopment agency within the meaning of Minnesota Statutes. The Port Authorify is considered a pofitical subdivision and the area in which it may exercise its public power is generally coterminous with the boundaries of the City of Saint Paui. By its enabling legislatiort, the Port is required to facilitate commerce within the Port district through the creation of development districts and to conduct economic development activities in and for Saint Paul and the East Metro region. The governing body of the Port Authority is a Board of Commissioners comprised of seven members, two of whom must be members of the Saint Paul City Council. Members of the Board are chosen by the Mayor, with the approval and consent of the City Council, and serve overlapping six-year terms. The Port Authority provides three primary product lines to its industrial customers: asset-based financing, developable site opportunities, and business assistance services, including customized job training for newly created positions. In addition, the Port Authority is active in East Metro economic development through partnerships with neighboring communities and regionai organizations, and manages more than $400 million in loans and properties on behalf of private investors. The Authority may, after pubiic hearing, create development districts within its area of jurisdiction, and make public improvements therein and acquire and lease or sell land and buildings for industrial and other economic uses. The Authority may also acquire, construct and lease or sell industrial, commercial and other revenue-producing projects, enter into revenue agreements for the financing thereof and issue revenue bonds payable from revenues derived from such agreements. Certain sovereign powers of the State delegated to the Authority include: (1) the power to acquire property by condemnation and (2) the power to levy ad valorem taxes to pay debt service on general obiigation bonds issued by the Authority with the approval of the Saint Paul City Council. City Council consent is also required prior to the issuance of Port Authority genera( obligation revenue bonds. The Port Authority cannot issue general obligation bonds without City Council consent. The Port Authority, as the industriai development organization for Saint Paul, has rectaimed more than 100 acres of land and created or retained more than 5,000 industrial jobs in the past three years. Industrial parks currently being developed, or in the planning phase ihclude: Crosby Lake Business Park The Crosby Lake Business Park is a 40-acre tract of once fallow industrial land being developed along Shepard Road on the bluffs overlooking the Mississippi River at Interstate 35E in Saint Paul. Based on current negotiations, all parcels in the business park are anticipated to be sold by late 1996 or early 1997. Upon completion, the Crosby Lake Business Park will contain 26 developable acres and will house an estimated four to six new manufacturing or ��-�� Ability-to-Pay Indicator Tax Bill for Debt Service Tax Levies -$100,000 Home in Saint Paul <�� F:!s:�1 �� St50 sioo F� 0 Payable Years A Ramsey County (City Portion) ■ Ciry of SaiM Paui ❑ Saint Paul Schools � Saint Paul Port Authority Tax Impact on 5100,000 Home Ramsey CouMy (City Portiw�) City of Sairrt Paul s�rn Pa�i su,00i5 Saim Paul Pat Authoriry Tdal Tax Bill Ramsey County (Cdy Portion) City of SaiM Paul SaiM Paui Schods SaiM Paul Port AuUrordy Totai Tax Biil 1989 1990 1991 $29 $23 $33 128 76 78 sz as 3s i6 13 12 $236 $160 $761 '1995 1996 '1997 $35 $39 $37 110 105 102 79 tf2 120 6 6 6 $�t0 $261 5265 '1992 7993 1994 s�e Ssa sa7 86 90 97 ya 2o ss 78 9 8 $155 5156 $197 1998 1999 2000 $44 $47 $52 103 702 99 125 134 1A3 5 5 5 $'L'/7 8289 $296 Note: For taxes paya6le in 1989, gross tax capadty' was used to detemrne property taxes. Begnrnng wiflr taxes payable in 1990, net tax capacity 2placed gross ta�r capacity as the basis on which taxes are levied. NetWx capacity dilfers fiom gross tax eapaciry primanry by havinglower values for homesteaded residen6al property and cerfain agrfwitu2t properry. -11- -36- �sas isso �ssi �s92 �ss3 �esa �s9s �sss �� sse �sss zaao a�l • 1 I This page intentionally left blank. industrial facilities in approximately 400,000 square feet of space. The $6 million project is expected to result in approximately 500 new and/or retained jobs for the City. Arlington Business Center The Ariington Business Center is a 69-acre site adjacent to Interstate 35E north of downtown Saint Paul, between Maryland and Arlington streets. Land sites shouid be ready for building by mid-1997. Upon completion, the park's first phase will contain 21 developable acres and wili house an estimated four to five new manufacturing or industrial facilities in approximately 350,000 square feet of space. The $13 million project is expected to result in approximately 400 new and/or retained jobs in the City. Williams Hill The Authority is now seeking approval for the redevelopment of an approximately 30-acre tract of land on the northeast intersection of Interstate 35E and University Avenue. Upon completion, the project is expected to provide 25 developable acres and 325,000 square feet of new construction, which wifl generate approximately $550,000 per year in tax increment. In addition, approximately 325 new jobs are expected to be created and/or retained. Ramsey County Ramsey County provides services to its residents in five major areas: Human Services, Public Safety and Justice, Public Health, Parks and Public Works and Central Administration. The County owns a large number of facil"�ties and other infrastructure throughout the County necessary in providing these services, Ramsey County has a capital improvement program process and bonding authority, in order to finance the capital needs of all of these facilities. Capital Improvement Program The Courrty Board established the capitat improvement program process, including a citizens' advisory committee, in 1987. The Capital Improvement Program Advisory Committee (CIPAC) is made up of fourteen citizens appointed by the seven County commissioners. Ramsey County's Capital Improvement Program (CIP) budget process begins with departments requesting 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 Improvements. Major Projects, Equipmenf Replacement Schedule Projects and Building Improvements are separated firom what are generally considered more regular capital maintenance projects for discussion and recommendation purposes. Regular Projects The County Board established the following priorities for rating individual capital projects: 'I) Protect Life/Safety, 2) Maintain Public Health, 3) Replace Facility, 4) Maintain Physical -35- -12- ��-�� Property, 5) Reduce Operating Costs, 6) Protect Property, 7) Provide Public Service, 8) Provide Pubfic Convenience, and 9) Enhance Counfy Image. CIPAC members individually rank requested regular projects. Staff from the County Manager's Department, Property Management, and the County Attomey's Office also individually rank the regular projects, and the two ratings are then combined. This Combined Rank is used to set overall regular 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 projects are repair/replacement and maintenance projects that maintain capital facilities and infrastructure. These projects should help improve operating efficiencies and offset increased costs for operations and repairs. Major Projects Major Projects requested by departments include: a suburban court facility, combined familyfjuveniie courts, a mentaf fiealth/defox facitify, a public works garage, an aduff defention center and a juvenile detention center. These projects have a total cost which would be too expensive to fi�ance all at once. The projects are prioritized annually by the County Board with recommendations from the CIPAC and the County Manager to decide which project, if any, will be included in the annuai bond sale. The adult and juvenile detention facilities have received the highest priority and have been financed since 1994 on a phased basis, which wili be continued through 1998. The other projects will be considered for financing in future years, depending upon their priority and the County's debt leveis and debt service compared to industry benchmarks_ Equipment Replacement Schedule This program provides for scheduled replacement of equipment for Parks and Recreation, Public Works, Community Corrections and Sfieriffs Departments from tax levy funds. Funds are used annuaily to purchase equipment such as squad cars, road construction, maintenance equipment and grounds maintenance equipment. Building Improvements The Ramsey County Government Centers East and West currently collect rent from occupants of those buildings. Included in the rental rate is an amount to finance building improvements which will be needed in the future. A five-year plan is prepared annuaily to fund capital improvement and building maintenance improvement projects in these buiidings from rental revenue. Debf Strategy In November 1992, Ramsey County became the only Home Rule Charter County in the State of Minnesota. Most debt and building fund levy limits and other restrictions established under previous statutes no longer apply, giving Ramsey County the opportunity, and the responsibility to establish realistic and affordable capital improvement levies for debt service and a Capital Improvement and Equipment Replacement levy (pay-as-you-go). The oniy debt limit applies to q �-�� Ability-to-Pay Indicator Tax Bill for Debt Service Tax Levies -$70,000 Home in Saint Paul Taz Impad on S70,000 Hort�e Ramsey County (City Portion) City of Saint Paui SaiM Paul SGwds SaiM Paul PoA AutFwrity Toql Tau Btll Ramsey Camty (City Portion) city of Sainc Paul Saird Paul Sc7�ools SaiM Paul Port AWhority TWaI Tax Bill 7959 1990 1991 $20 $73 $18 86 41 42 42 27 21 11 7 7 $758 $87 $88 1995 1996 1997 $79 $21 $20 60 57 56 43 6] 66 3 3 3 $126 $743 $145 1992 � �994 S27 $Z1 $20 47 49 53 7 tt 30 10 5 4 $85 $85 $708 1998 'i999 2000 $24 $26 $28 56 56 54 G9 74 78 3 3 3 $151 $156 $163 Nofe: For taxes payaWe in 1989, gross tax capacily' was used to detemeine propeRy taxes. Begnning with taxes payable in 1990, net tax capacity replaeed gross tax eapadty as fhe bass on which taxes aie kvied. Net fax capacity dHers from gross tax capaci(y primardy by havinglower va/ues forhomesteaded resdential property am! certain agriculfurdl property. -13- -34- �z-�C ABILITY-TO-PAY ONDICATOR Tax Bill for Debt Service Tax Levies Definition and Purpose: A major portion of the debt covered in this report will be repaid by property taxes. An indicator of the burden of this debt is how the amount of the tax bill for this debt service changes over time for representative residential properties. This indicator estimates this change in property tax bilis for debt service for two representative properties: $70,000 and $100,000 residential homestead properties. The tax bill is based on the estimates of increases in the property tax bases previously discussed. ��-�� all local governmental units in Minnesota. This limit is 2% of the market value of all 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 wifh industry benchmarks. In addition, the County participates with the City of Saint Paul, Saint Paul Schools and Saint Paui Port Authority to review overall general obligation debt on the Saint Paul tax base through the work of the Joint Debt Subcommittee of the Joint Property Tax Advisory Committee. CAPITAL INVESTMENT OVERVIEW Target Range: No target ranges were established with the expectation that individual ju�sdictions would address their own situations. Trend: For the $70,000 property, the tax bill ranged from a high of $158 in 1989 to a Iow of $85 in 1992 and 1993. For the period of 1996 through 2000, the tax bill is estimated to increase from $143 in 1996 to $163 in 2000. Summary: For the $100,000 property, the high and low points for the period 1989 through 1995 are the same as for the $70,000 property. For the period 1996 through 2000, the tax bill is estimated to increase from $261 to $298. For the period 1996 through 2000, representative tax bills are estimated to increase by approximately 14%. Each participating jurisdiction recognizes its responsibility to respond to the demands of infrastructure replacement and enhancement. On the following pages, the overall historical and future levels of capital investments are profiled. Future capital spending is an outgrowth in part of the participants' initiatives previously discussed. The capital investment levels are financed from a variety of sources, of which debt plays a part. Table 1 shows the amount of historical and future combined and individual capital investment by year for the City, the School District, and the County. The Port Authority is excluded because it serves as an industrial development organization for the City. Over the time period 1989 through 2000, combined capital investment reached a high point in 1989 at approximately $182 million. 1996 represents the next highest combined point, at approximately $152 million. The participants estimate future combined capital investments will decrease through 1999, then increase slightly in 2000. -33- -14- ��' Table I Total Annual Capital Investment .. . �, ... • � .. � ... :...� �.. . ... ... .� �.� ..� � �.� r�a �,.� �� r� �o� � �� a� � �� r�� . �i Ability-to-Pay Indicator Debt Service Levy Per Household - Saint Paul Port Authority sz�o s�so s�so s�ao S�2o $700 $80 $60 $40 $ZO � 7989 t990 1991 1992 1993 1994 1995 1996 1997 1996 7999 2000 Payable Year B Ramsey County ■ City of Sainf Paui Ci Saint Paul ScFiools TotaiCaprtalSpending: 1989 1990 7991 �992 1993 7994 RamseyCounty $96,589,875 $9.867.Q74 514.4Q5,769 $7.759.326 572,058,407 $9.Q53.188 Ci[yofSairrtPaul 74.282,SOD G5.088,803 52,538,950 65.437,579 65,197,452 61.858.000 SairdPaulSehods 11.317.W0 26.524.000 35.539.000 32.043.000 29.791.000 37.556.00D Totai 5182,189,375 $101,473,877 $102.483,719 $105,239.905 5107,046.853 $108.467.188 Ramsey County City of Saint Paul Sairrt Paul Sohods Total 1995 1996 1997 1998 1999 2000 $17,825,757 $21,672,865 $30.930,803 $48,7U6.333 512.823.303 530,038.803 64.106�W0 69.2W.OW 40.000�000 37�200.000 37.200.00D 37.700.00D 45.559.WD 61.446.OW 562S5.W0 29.921.000 71.702.000 23.038.000 $'127.490.757 $152,324,865 $727,2'15.803 $115.827�333 $72�725�303 $90.776�803 Note: Mnual capital investrneM figures shown above for Ramsey CouMy represenE Counfy-wide capifal spending, not just the portion at6i6utable to the Cify of Saint Paul. -15- . . Port DeM Serviee Tax Levies N�enber of City Households DIS Levy Per Household Port Debt Serviee Tu Levies N�unber of City Households D/S Levy Per Household 1989 $1.639.504 111.28:i $15 '1995 $842,076 110,355 $8 1990 $1,823,859 N Q249 $17 1996 $823,375 110,355 $7 '1991 $'1,810.634 110,424 $16 t997 $824,689 11Q355 $7 1992 S2,E�62,550 710,476 $23 '1998 $735.432 710.355 $7 1993 $1,232.550 f 70.430 $11 7999 $736.756 t 10.355 S7 7994 $1.023.261 110.347 $9 � $734,�9 110.355 b7 Note: The amorrnts shown above represerK tlebt semte /evres per /auseho/d and are not a repiesentabon W fhe taz bIf! fw debtservice (which is based on properfy va/ues rrthertl,an ineome). -32- 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Fswl Year �� -�� THE ROLE OF DEBT Ability-to-Pay Indicator Debt Service Levy Per Household - Ramsey County Capital investment can be funded by debt and non-debt sources. The mix of these sources are significant in the current and long-term financial health of individual jurisdictions and the burden placed on local taYpayers. Debt represents a long-term commitment of resources to repay obligations. If debt leveis become too high, leading to increasing annual draws on the community's resources for debt service, local governments wili be faced wifh 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 overaN financial health of the community. Also, the decision to proceed with a capital investment can be assisted if each dollar of investment does not result in a dollar of debt. Each jurisdiction's ability to finance capital invesiment is controtled by iis own legislative authority, ability to raise revenues from various sources, and individual policy options. Certain types of local governments have more latitude to raise revenues and incur various types of debt. Therefore, each participanYs situation must be shown individually, and while comparisons among participants may occur, it must be kept in mind that different jurisdictions have varying levels of loCal control. Tables II, III and IV show annuai general obtigation debt issued as a percent of an�ual capitat investment for the City, School District and County, respectively. In certain cases, a participant may show a level higher than 100% because in one debt issuance, a muitipie-year project is financed. Total Co. DeM Service Levy PerceM Applied to City Share City Share of Co. Debt Levy Number of City Households DfS Levy Per Household 1989 $6,048,031 49.6% $2,999.823 111.283 $27 �s90 $6.W4.9&5 51.4% $3.343�562 »o,zas � 1991 '1992 '1993 $9.563,751 $10,624,554 $10.453,192 51.4% 51.3% 512% $4.915.766 $5,450,396 $5.352,034 170,424 170,476 710,430 $45 $49 $48 �ssa $9�934.215 50.4% $5,006.844 »o,sa� S4S 1995 19 6 1997 't998 7999 2000 ToWICo.DebtServiceLevy $9.238.680 $10.625,352 $10,731,100 $13.021,738 $74.503,975 $16.200.931 Pereent Appiied to City Share 49.8% 49.1 % 48.3% 47.6% 46.9% 462% City Share of Co. Debt Levy $4.600.863 55277.048 $5,183.121 $6,198.062 $6,802.364 $7,484.830 NumberofCityHousehoids 110,355 110,355 1�0,355 N0,355 710,355 110,355 D/S Levy Per Household $42 $4T $47 $56 $62 $68 Nofe: The amwi� shown above rzpreserK debt service fevies perhousehold and are rmf a reprasentaSon of fhe taacbil/ for debf serviee (whlch Is based on property values rather than i�rcome). Each participanYs overall level of debt and their contributions to the overlapping debt placed on other participants is also valuable information. Table V shows the dollar amount of total general obligation debt by participant and combined over the period 1989 through 2000. The combined total rises from a low in 1989 of $216 million to an estimated high of $407 million in 2000. Individually, each participant's experience follows the combined situation, with the exception of the City which shows a decrease from a high point in 1994 of approximately $150 million to a low of approximately $132 miliion in 2000. Table VI shows the changes in the annual contributions to the total debt burden, or overlapping debt, as a percent of the total debt of the combined entities. -31- -16- ��-��1 Tabie H Annual G.O. Debt Issued to Annual Capital Investment - City of Saint Paui t60.o°k 140.0% 120.0% 1 D0.0% 80.0% 60.0% 40.0% 20.0% 0.0% CRV of SaiM Paul Debtlssued ToWI Capital Spending Debt to Capital Spending Debtlssued Total CapiWl Spending Debt to Capital Spending 1989 199U 1991 t992 1993 1994 $24.250.000 $14,850.000 5'I3.140.OW $14.485�,000 $33.910.000 $16.650,000 $74.282.500 $65.088.803 $52,538.950 $65.437.579 $65.197.452 $61.858,OW 32.6% 22.8% 25.0% 22.1 % 52.0% 26.9% 1995 1996 7997 1998 1999 2000 $15,610.000 $19.720.000 $"19.600,000 $16,200.000 $16,200,000 $16.700,000 �G4,106.000 $69,206.000 $40.000.000 $37.200.000 $37,200,000 537.700,000 24.4% 28.5°h 49.0% 43.5°k 43.5% 44.3% Note: The Cit}/s fiscal year coincides wrth the ca/endar year, endng December 31 of each year fisfed above. . , Ability-to-Pay Indicator Debt Service Levy Per Household - Saint Paul Schools q�-�1 1989 1990 7991 �992 1993 7994 SID Debt 5ervice Tau Levies $6,322,838 $7,t02,000 $5,575,000 57,977,000 $2,759.000 $7.511,d8 N�unberofCityHousehofds 111,283 tt0,249 110,424 170,476 t10,430 110,347 D!5 Levy Per Household $57 $64 $5p $18 $25 $68 1995 1996 1997 1998 1999 2006 S!D Debt Service Ta7c Levies $10.426.000 $15.141.OW $16,874,000 $17.8� 9,539 $19,305,978 $20,698,892 Nianber of City Househotds 110,355 110,355 110,355 110,355 110,355 110,355 DIS Levy Per Household $94 $737 $753 $161 $775 $188 Note: The amour� shown above represerK deMseiviee levies perhousehold and are nof a represenfation of the far 6if! fw debtservice (fvhlch ls 6ased on propeKy vatues raU�er than irrcomeJ. -17- -30- '1989 '1990 7991 1992 1993 1994 '1995 1996 1997 1998 7999 2000 Fiscal Year � V J � l Ability-to-Pay Indicator Debt Service Levy Per Household - City of Saint Paui '1988 1990 1991 1992 7993 1994 CityDebtServlceTaxLevies $13,062,792 $10,989,360 $17,496,813 $12,489,955 $12,711,327 $13,075,174 Number of City Households 111,283 110,249 110,424 110,476 110,430 110,347 WS Levy PerHousehold $118 $100 $104 $773 $115 $119 1995 996 1997 1998 1999 2000 City Debt Service Tax Levies $74,578,338 $14,212,875 $14,374.387 $14.575.685 $14,630.102 $14.367.G91 Number of City Households 110,355 110,355 110,355 170,355 110,355 110,355 WS Levy Per HousehoM $132 $129 $130 $132 $133 $130 Nofe: The amour� stwwn above represenf debf servicelevies per housebold and are nof a representaSon ofUie faz bilf for de6tservice (whieh is based on property va/ues rather than ineome). q�-' Table III Annual G.O. Debt lssued to Annual Capitai Investment - Saint Paul Schools . ,so.o^� iao.o% �zo.o^.s �w.o°6 so.o% so.o% 40.0% 20.0% o.o% � SaiM Paul Schools Debtlssued Total Capital Spending DeM W Capital Spending Debtlssued Total Capital Spending DeM to Capitai Spending 7989 1990 1991 1992 1993 1994 $0 $41,443.543 $9.00�,000 $12.700.000 $13.000�000 $40,OW,OW $11,317.W0 $26.524,W0 $35,539.OW $32,043.OW $29.791,000 $37,556,000 0.0% 1562 25.3% 39.6% 43.6% 106.5% 1995 1996 1997 1998 1999 2000 $50,OOO.D00 $20,OW.000 $11,000.000 $11,000.000 $17,000.000 $11,000.000 $45,559.W0 $61,446,W0 $56,285,000 $29.921.000 $72.702.000 $23,038,W0 109.7% 32.5% 19.5% 36.8% 48.5% 47.7% Note: Annual capital investrnent figu�es shown above rep�esent the capital spending in each fiscai yearfir the Dis6ict, The DistricPs fiscal year ends June 30 of each yearlisfed a6ove. The amount ofdebt shown for each year is a/so issued wifhin !he same fisea/ yeat as the capita! spending amount Proceeds of the debt are spent down over severa/ years. _29_ _�g- 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Fiscal Year ��-�� Table IV Annual G.O. Debt issued to Annual Capital Investment - Ramsey County 160.0% 140.0%a 120.0% 100.0% 80.0% 60.096 40.0% 20.0% 0.0°.6 RamsevCouMv Total Debt Issued Total Capital Spending DeM to Capital Spending 1989 $80.500.000 $96,589,875 83.3% 1990 199'1 $7,580.000 $3.700.000 $9,861.074 $14.405.769 76.9°k 257% 1992 1993 56.840.000 54.700.000 s�.�ss.azs $,zoss.ao, 88296 39.0°.6 1994 $6,470,000 $9.053,188 71.5°h 1995 1996 1997 1998 1999 2000 Totai Debt Issued $11.045.000 $17,570.000 $9.275.000 $14,085.000 $3.490.000 $14,535,000 Total Capital Spendirg $17.825.757 $21.672.865 $30,930.803 $48,�(76.333 $12.823,303 $30.038.803 Debt to Capital Spending 62.0% 81.1 % 30.0% 28.9% 272% 48.4°h Note: Mnuat capita! investrnent figu,es shown above torRamsey CouMy represent County-wide capital spendng, not just the portion athibutable Eo tlre City of Saint Paul Debt issued 2presents the amount issued that is payable from a generai County-wide tax lery and excfudes debt issued which is paya6le from a fax levy spread on only suburban communities. The County's fisca! year coincides witl� the calendar year, ending December 31 of each year lisfed above. ��-�1 Ability-to-Pay Indicator Total Debt Service Levies Per Household saoo $350 a $300 $250 $200 $150 $100 $50 $0 � . D/S Levy Per Householtl 1989 , 1990 1991 1992 1993 1994 Ramsey CouMy (City Partion) $27 $30 $45 $49 $48 $45 City of SaiM Paul 118 100 104 113 115 119 Saird Paul Schools 57 64 50 78 25 68 SaiM Paul Port Authority 15 17 16 23 11 9 Total $216 $211 $216 $203 $200 $241 1995 1996 1997 1998 7999 2000 � Ramsey CouMy (City Portion) $42 $47 $47 S56 $62 $68 Cily of SaiM PaW 132 129 130 732 133 130 SaiM Paul Schools 94 137 153 161 775 188 Saird Paul Port Authority 8 ? Z ? � � Total $276 $321 $338 $356 $376 $392 1989 1990 1997 1992 1993 1994 Number of City Households 111,283 110,2d9 110,424 110,476 110,430 'I'10,347 1995 1996 1997 1998 1999 2000 Number of City Households 110,355 110,355 110,355 110,355 110,355 110,355 Note: The amourtu shown above represent debi service /evies per household and are not a represeniaSon of fhe tar bilf for debt service (which is based on property values rather than income). -28- -19- 1989 1990 1991 7992 1993 1994 1995 1996 1997 1998 1999 2000 Payabte Year � Ramsey County (Ciry Portion) ■ City of SaiM Paul ❑ Saint Paul Schools ■ SaiM Paui Port Authority 19&9 1990 1991 1992 1993 1994 1995 1996 1997 1996 1999 Z000 Fiscal Year ��Z-Z ABILITY-TO-PAY INDICATOR Debt Service Levy Per Household Definition and Purpose: The property tax can be viewed as the price government charges for its services. These services are broadly dividecf into operations (such as public safety, street maintenance); and infrastructure investment (such as pay-as-you go capital and debt service). This indicator measures the annual debt service property tax levy per household (annual price of debt). The purpose is to show how this price to the citizens for debt service changes over time with annual debt levy variations. No industry benchmarks exist in this area, and this information should be used only as a relative indicator of increase or decrease. Each jurisdiction is listed separately. This indicator is not a representation of the tax bill for debt service (which is based on property values rather than income}. Sample tax bills for debt service are provided on pages 34 and 36. Target Range: $350 -$400 fior Debt Service Levy per Household. No iarget ranges were established for Debt Service Levy perHousehold, wfth the expectation that individual jurisdictions would address their own situations. Trend: Summary: The City shows an increase from 1990 to 1995, then a leveling through 2000. The School shows a reduction from 1990 to 1992, fhen an increase through 2000 to $188. The County shows no pattem until 1995, after which it increases through 2000. The PoR stays at a flat level after 1995. The overall trend is upward. The number of households has been frozen at the 1995 level for 1996 and thereafter. a'i-�� Tabie V Total G.O. Debt by Issuer $zoo,000,000 $�so,000,000 $iso,000,000 $140,000,000 si2o,000,000 $�oo,000,000 $ao,000,000 $60,Q00,000 $40,000,000 $2o,00a,000 $o Calendar Year � Ramsey County ■ City of Saint Paul 0 Saint Paul Schools � Saint Paul Port Authority Total G.O. Debt: Ramsey County City of Saint Paul Saint Paul Schoois Saint Paul Port Authority Total Existing & New Ramsey County City of Saint Paul Saint Paul Schools Saint Paui Port Authority Total Existing & New 1989 $45,408,800 141,679,000 24,440,000 4,305.000 $2'15,832,800 1995 $51,923,970 149,465,000 157,603,209 17.490.000 $376,482,179 1990 $47.966.480 150,0'11,000 58,263,743 3840.000 $260,081,723 '1996 $58,883,175 147,320,000 175,048,733 �7.100.D00 $398,351,908 1991 $47,447,344 �46,387,000 59,783,743 3,375:000 $256,993,083 '1997 $59,392,095 146,�50,000 180,78'1,931 16.800.000 $403,'124, 026 '1992 $48,745.260 142,930,000 65,63�,959 Zsoo.000 $260,207,219 1998 $6'1,822.880 �ao,aso,000 184,645,832 16.475.000 $403,393,712 '1993 $48,642,560 149,625,000 75,152,938 2.390.000 $275,810,498 1999 557,944,950 135,695,000 '187,773,450 22.165.000 $403,578,400 1994 $49,384,440 149, 975, 000 11'1,462,306 17.870.6Q0 $328,691,746 2000 $58,244,340 '131,710,000 190,366,553 27.250.000 $407,570,893 -27 -20- � O N th � � (O I�- N � O eD W � � � � m � Q� � m O W W � � � W W � � � � N � � / � I Table VI Overtapping G.O. Debt as Percent to Total �o.o% 6D.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0°h 196 Overlapping Debt as Percent of Total: �989 Ramsey County 2'1.0°k City of Saint Paul B5.6°k Saint Paul Schools 'I1.3°k Saint Paul Port Ruthority 2.0% Total 100.0°k Ramsey County City of Saint Paul Saint Paul Schools Saint Paul Port Authority Total '1990 18.4°h 57.7% 22.4% 1.5% 100.0% 1995 '1996 13.8°k '14.8°� 39.7°l0 37.0°k 41.9°� 43.9% 4.6°!0 4.3% 100.0% 100.0% 1991 18.5% 57.0°k 23.3% 1.3% 100.0% 1997 14.7°k 36.3% 44.8% 4.2% 100.0% '1992 18.7% 54.9% 25.2% 1.t% �00.0% 1998 15.3°k 34.8% 45.8% 4.t% 100.0°k 1993 � 7_6% 54.2% 27.2% 0.9% 100.0% 1999 14.4% 33.6°k 46.5% 5.5% �00.0% 1994 15.0% 45.6°k 33.9% 5.4% '100.0°k 2000 14.3°k 32.3% 46.7°k 6.7% '100.0% r 0 Credit Rating Indicator Total G.O. Debt to Indicated Market Value s.00^� a.so^6 4.00% 3.50%'0 3.00°.6 2.50% 2.00% 1.50% 7.00°b 0.50:6 0.00% G.O. Debt to I.M.V. Ramsey County City of SaiM Paui Saint Paul Schools Saint Paut Port Authority Total Debt to Mkt Value Moody's Medians 7989 0.58°b 1.81% 0.31 % 0.06°h 2.76% 3.8% 7995 o.sa% 1.84% 1.96% 0.Y2% 4.63% 3.8% 7990 0.58°b 7.83% 0.71 % 0.05% 3.17% 3.0°k 7996 o.�i% 1.78°h 2.71:6 0.27% 4.81% 4.'I% '1997 0 57°5 1.75°b 0.71°,G 0.04°b 3,06% 4.0°,G 1997 o.� '1.73% 2.73°b 0.20% 476% WIA '1992 0.61 % 1.78% 0.82% 0.04% 325°� 3.7% 7998 o.n�.c 1.64% 2.16% 0.'19% 4.72% WA 1993 0.6'I % 1.89°h 0.95% 0.03% 3.48% 3.1% 7999 o.sr� '1.57°b 2T7% 0.26% 4.67% WA ��` �� 1994 0.63°b 1.91°.6 1.42°.6 023% 4.19% 3.5% 2000 o.s�� 1.51% 2.18% 0_3'I % 4.67°b WA Ramsey CouMy City of SaiM Paul , SaiM Pauf Schoois sa�rn Pa�� Port nw,only Total Debt ta Mkt Value Moody's Medians • City Ind. Market Value �989 �990 1991 �992 1993 1994 7,808,365.562 8,2'Ib,115.290 8.385.923,323 8,013.445.348 7,9'18,3'13.99'1 7.842.707.970 1995 1996 1997 7998 '1999 2000 8,'134,540,'154 8.288.848,603 8.470.505,642 8.555,2�0,698 8,640.762.805 8.727,170,433 Note�lndicatetl Market Values for 1989 thravgh fA97 are based a� N�e Es6mated Market Yalue farthe Cdy divided by the sa/es 2tio for eaeh year as determined by the State DepaAment of Revenue. lndicated Market Value projections Iw f998 thrargh 2000 incluUe a 1% growC+factor over the previous year. -21 - -26- 9 1990 '1991 1992 1993 'f994 '1995 1996 1997 1998 1999 2000 Catendar Year -a�-Ramsey County �--City of Saint Paul --� Saint Paul Schools �--Saint Paui Port Authority 1989 7990 199'I �992 '1993 1994 1995 199G 7997 �996 '1999 2000 Calef War Year 9 Ramsey CouMy ■City of SaiM Paul � Saint Paul Schools �SaiM Paul PoK Authorily ��- l CREDIT RATING INDICATOR Debt to Indicated Market Value Definition and Purpose: Debt fo indicated market value is a basic credif rating indicator showing the tofal principal amount of debt to the fu(i value of real estate. As the ultimate source of repayment for this debt is the general property tax, with such tax levied against the value of all properties, this indicator depicts the overall debt burden as both debt and the resources for repayment (value) change over time. Low ratios are viewed as positive indicators. Moody's Medians are again listed for market value. (Please see description on Debt Per Capita.) Target Range: 4.50°fo to 5.50°l0 Trend: The combined debt to indicated market value increases from 2.76% in 1989 to 4.81 % in 1996 and then declines to 4.67% in 2000. In 1990 and 1992 through 1996, the indicator exceeds the Moody's Medians. Over the term, the school district represents a greater share of the indicator. Indicated market value, both historicaliy and estimated future, shows very little change. The Appendix to this report (page 45) provides detailed information about indicated market value. Summary: The combined debt to indicated market value indicator increases by 74% between 1989 and 1996 and begins to decline in 1997 through 2000. Moody's Medians for Overall Net Debt to Estimated Full Value'� 19$9 1990 1991 1992 1993 1994 1995 1996 Low 22% Median 3.8 High 7.2 1.7% 1.1 % 2.2% 2.2% 1.3% 3.0 4.0 3.1 3.1 3.5 7.2 7.8 7.3 9.2 9.9 1.8% 2.5% 3.8 4.1 7.3 10.0 ' The ranges ind'rcated above are tor cities with a population of 200,000 fo 299,999. Moodys does not specify certain credit ratings for the ranges. _ �' �t INDICATORS Investment in public infrastructure and the financing by debt results in numerous financial impacts on the participating jurisdictions and their citizens. The focus here is on a limited number of impacts which cover four fundamental financial areas: credit rating, property taxes, capital investment impact on operations, and the citizens' ability-to-pay. For each of these areas, indicators of impact have been determined, analyzed and positions summarized. These �� indicators provide basic proxies of the jurisdictions' individual and combined impacts. Each indicator is profiled as to its definition and purpose, farget range, trend and summary *' position. I The target range within this profile presents a policy position of this Subcommittee as to a positive performance objective. As a target range, the jurisdictions are permitted flexibility to respond to their overall policy objectives. Each indicator is separated into two components: historical, covering the period 1989 through 1996; and future, covering the period '1997 through 2000. , For credit rating indicators, the debt shown, with few exceptions, was developed to be i consistent with that debt included by the national credit rating agencies in computing their debt ratios. Detailed information relating to the types of debt included and exduded for this purpose is provided in the Appendix to this report. i i � ! i -25- -22- �� CREDIT RATING INDICATOR Debt Per Capita Definition and Purpose: Debt per capiYa is a basic credit rating indicator showing the total principal amount of debt to the total population. It depicts the overall debt burden as both debt and population change over time. Low ratios are viewed as positive indicators. The national credit rating agency, Moody's Investors Service, annually pubiishes its own indicators of credit rating burden and position, "Moody's Medians." These are established by population range categories forjurisdictions and are national in character. Moody's Medians are listed through 1996, the last year of publication. Target Range: $1,450 to $1,550 Trend: The combined debt per capita increases from $805 in 1989 to $1,470 in 1996 to $1,503 in 2000. In each year through 1996, they remain below Moody's Medians. Over the term, the school district represents a greater share of the indicator. Summary: Population, both historically and estimated future, remains basically unchanged. The combined per-capita debt indicator increases by 83% between 1989 and 1996, and by only 1% between 1997 and 2000. Moody's Medians for Overall Net Debt Per Capifa* 1989 1990 1991 1992 1993 1994 1995 1996 Low $ 645 $ 601 $ 329 $ 636 $ 664 $ 672 $ 894 $ 776 Median 1,123 1,082 1,276 1,500 1,418 1,477 1,581 1,623 High 2,236 2,315 2,543 2,940 3,069 3,594 2,576 2,949 ` The ranges indicated above are forcities wrth a population of 200,000 to 299,999. Moodys does nof specify certain credit ratings fo� the ranges. Credit Rating Indicator Total G.O. Debt Per Capita s�,soo si.aoo $1,200 s�.000 s800 S600 Saoo S2oo � f � �11-11 G.O. Debt Per Capita Ramsey CWMy City of SaiM Paui Saint Paul Schools Saint Paul Port Authaity Totat Debt Per Capita Moodys Medians 7989 5169 529 9'I 16 5805 51,123 1990 $176 551 214 14 $955 87,082 Ramsey CouMy 1� City of SaiM Paul - Safrrt Pau� Scrwols SaiM Paul Port Authority � Total DeM Per Capita Moodys Medians City Population 1995 1996 $192 $217 551 543 581 646 65 63 51,389 51,469 51,581 $1,623 1989 1990 2(i7.968 272,235 '1995 1996 271.120 271.120 1991 $174 537 219 12 5943 57,276 1992 $179 524 241 11 5954 57,500 1997 1998 $219 $728 539 578 667 681 62 61 51,487 E1,488 WA N!A 1991 1992 272,537 272,692 1997 1998 271.120 271.120 1993 $179 Sb0 276 9 51,013 51,478 1994 $182 552 410 66 51,270 51,477 1999 2000 $214 5215 500 486 ss3 �02 82 101 51,489 51,503 NiA N/A 1993 1994 272,243 271,660 1999 2000 271.120 271.120 Note: PopolaSon figures for 1989 and ?991 dvough 1995 are Mebopolitan Gounci! esfrmates. The 1990 populafron figure is trom fhe US. Census Bu2aa Popula6on projections for 1996 fhrough 2000 a2 frozen at the ?9951eve% -23- _24_ Ol o N ch < In tD r N rn O m rn rn m m m rn rn rn rn m W 6I W W W � W 61 � W O� N Calendar Year 9 Ramsey County ■ City M Saint Paul ❑ SaiM Paul Sohools � Saint Paul Port Authority � �1-�i Fsom: Joe Reid To: CCOUncil.COUNCIL.annc, Date: 1/24/97 12:29pm Sub3ect: Resolution 97-71 CCouncil.COUNCIL.bobbim, CC... This resolution seeks adoption by the City Council of the updated joint debt plan o£ the City o£ Saint Paul, Ramsey County, School District 625 and the Saint Paul Port Authority. The plan was prepared by the Joint Debt Advisory Committee, the inside cover lists the members of the committee. It has been reviewed and amended by the Joint Property Tax Advisory Committee (JPTAC) and has been £orwarded by the JPTAC £ox approval by each jurisdiction. As the lead jurisdiction, the City is the first to be asked to accept the plan as a joint wosking document for debt management. If you have any questions, please contact me or Bobbi Megard, the elected official who represented the City on the Debt Advisory Committee. Joe �,�p�-, �, �.�;� i '`' 'r a: � � . . , �. Presented By Referred To RESOLUTION CtN OF SAINT PAUL, MINNESOTA Commikee: Date Council File # �_7 � Green Sheet # �� 7 WHEREAS, in 1977 the City of Saint Paul, Ramsey Counry, Independent School District #625, and the Saint Paul Port Authority joined together and formed a Joint Debt Advisory Committee (JDAC) to control the shared community's general obligafion debt in a responsible manner while providing for the fuhue physical development of the City; and 6 WHEREAS, the 1993 Minnesota I.egislature created the 7oint Properly Taz Advisory Committee, � (7PTAC) wmprised of Ramsey County, the City of Saint Paul and Independent School District #625, a to foster coordinarion between the three jurisdicuons; on taz and spending matters; and io WHEREAS, in 1996 the 7oint Debt Advisory Committee was made a subcommittee of the JPTAC; i� and iz is WHEREAS, during 1996, the 7DAC was reconvened by the 7PTAC and established a debt plan for ia 1996 - 2000; now, therefore be it is ie RESOLVED, that upon recommendafion of Mayor Norm Coleman, the Council of the City of Saint i� Paui does hereby accept the recommendations of the 7PTAC and adopts the recommendations is contained on page 2 of the 1996 Capital Investment and Debt Management for Saint Paul L,ocal i9 Governments report. zo n Requested by Department of: Budget Office Adopted by Council: Date Adop 'on Certified by Cow By: `a- — Approved by Ma or: Date sy: L BY� � � . Director Form Approved by City Attorney By: , � ? �Z21 �`� Approved by Mayor foz Submission to Couneil By: ! �' � �d- (�SZn�� DEPARTF�I�TVOPPICF/COUNCII. DA]EINRiA1ID ' � , Financia�ser�ices 1/22/97 GREEN SHEET NO. 35873 COMACfPERSON&PHONE , Oj DEPARTMENIDRtECfOH O4 CIIYCOUNCQ, JoeReid 266-8553 M;� O ,— z , / crrrnrco�r � crrrc�cu MUS[BEONCOi1NCQ.AGE!]DABY(DA'LE) a� I J' BUDCECDIltECI'OR � FIN.BMGf.$ERViCPSDIR Y–' O3 MAYOR(ORASSI52 � Finance-Accounting TOTAL # OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATfJRE) acrsox�vesrm Approval of a resolurion to accept the recommenda6ons of the Joint Debt Advisory Committee (a subcommittee� of the JPTAC) and adopt the recommendations of the 1996 Capital Investment and Debt Management for Saint Paut Local Govemments report. RECOhf.�lIDAlIONS. Appmve(A) wRq�(R) PERSONAI. SERVICE CONTRACfS MOST ANSWER THE FOLLOWING QiJESTIONS: PI.ANNWGCOMMISSION _CIV➢,SHtVICECOMI.II55(ON l.Hasihispexson/fumevuworkeAunderacontractforihisdepaztment? cmco,�a.arrES _ YES NO ' s[ntr _ 2. Has ihis personlfum ever been a city employce? n�six[crco[mr _ YES NO sureoxrs wen�covrvca os�ECma+ 3. Does this person/fimi possess a sldll not nomially possessed by any cuaent ciTy employee� YES NO (Explain all yes answers on separate sheet and atfach to green sheet) . ssnn�rnvcr�cosl.eM, rssus, oeeoxivcmv �mo. wnar, vm�. wn=�, wny} , The resolution continues the practice of coordinaring debt plans for the Ciry, Ramsey County, Independent School District #625 and the �Port Authority in order to control the shazed community's general obligation debt in a responsible manner. The report estimates future , capital investment and property tax (general obligation) debt conditions for the period 1996 through 2000, within the corporate limits of � the Ciry of Saint Paul. The report forecasts indicators of the impacts of future debt issuance in the areas of credit rating, ability-to-pay, property�taxes and operations. For each of these indicators, the Subcommittee has established targe[ ranges against which, actual performance and future estimated outcomes can be evaluated. - ADVANiAGESffAPPROVSD � � . Coordination of debt payments, which will affect proper[y tas payers, and stable credit ratings. , � - DISADVANI'AGESIFAPPROVED: ' Noneknown. � �Q�3�� '��'��3 ��' ,� z��a��:�i� ` . ; '�,��;�p{' � ��t� � � �� , .�d � �� #�� DISADVANiAGESOPN01'APPI(OVED , - —.��_. Lack of coordinated planning could result in higher debt levels (and proper[y taYes) and/or larger fluc[uations in debteivice payments from yeaz to yeaz. TOTALAMOUNTOF'fMNSACT[OM Not3�liC2ble COST/REVENUEBUDCETED(CRiCLEONE) O NO FONDiNGSOURCE ACTIVITYNUQffiER PMANQALA'FOAMATiON (EXPLAA� �'Z-�� Y Joint Property Tax Advisory Committee Joint Debt Subcommittee Capital Investment and Debt Mana for Saint Paul Local Governments . . , ��-- � November 18, 1996 SUBCOMMITTEE MEMBERS Elected Officials City of Saint Paul: Saint Paul Public Schools: Ramsey County: Professional Staff City of Saint Paul: Saint Paul Public Schoois: Ramsey County: Saint Paul Port Authority: Financial Advisor Springsted Incorporated: Ms. Bobbi Megard, Saint Paul City Council Member Mr. Marc Manderscheid, Saint Paui School Board Chair Mr. Rafael Ortega, County Board Commissioner Mr. Joe Reid, Budget Director Ms. Martha Larson, Director Depar[ment of Finance and Management Services Ms. Shirley Davis, Treasurer 1�711s. Martha Kantorowicz, Debt Manager Mr. Ken Zastrow Executive Director of Susiness and Financial Affairs Mr. Larry Shomion, Chief Accountant Mr. James Van Houdt Director of Budgeting and Accounting Ms. Marion Holfy Special Projects Manager, Budgeting and Accounting Ms. Laurie Hansen, Chief Financial Officer Mr. David N. MacGillivray Principal, Director of Project Management Ms. Catherine R. Polta, Vice Presidsnt ��-�l � q,� _'� 1 The taxable net tax capacity for 1997 is a preliminary estimate. The taxable net tax capacities for 1998 through 2000 include a 1% growth factor over the previous year. The tax capacity for 1989 represents "gross" tax capacity, rather than "net" tax capacity. The change in the State property tax system from gross tax capacity to net tax capacity primarily resulted in lower values for homesteaded residential and certain agricultural property. Operational/Capital Finance InterEace Indicator Debt Service Tax Levy to Total Tax Levy Debt service tax levies are 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. Both debt service and total tax levies are net of HACA. �� l Table of Contents �� -� � SUMMARY AND FINDINGS ................................................................ RECOMMENDATIONS ....---��--�---�---� .................................................... INTRODUCTION.................� �--�---�-�-�--.................................................. MissionStatement ...................................................................... Strategies.........-�--� � .................................................................... HISTORICAL BACKGROUND ............................................................. METHODOLOGY........ ...........�---......................................................... Pa e s 1 2 3 3 3 4 4-6 SUMMARY OF PARTICIPANTS' INITIATIVES ..................................... 6 Cityof Saint Paul ......................................................................... 6-8 Saint Paul Public Schools ............................................................ 9-10 Saint Paul Port Authority ............................................................. 11-12 RamseyCounty ........................................................................... 12-14 CAPITAL INVESTMENT OVERVIEW ................................................... 14-15 THE ROLE OF DEBT ............................................................................ 16-21 INDICATORS ........................................................................................ Credit Rating Indicator — Debt Per Capita ................................... Credit Rating Indicator— Debt to Indicated Market Value............ Ability-To-Pay Indicator — Debt Service Levies Per Household ... Ability-To-Pay Indicator — Tax Bill for Debt Service Tax Levies ... Operational/Capital Finance InterFace Indicator— Debt Service Tax Levy to Total Tax Levy ................................ 22 23-24 25-26 27-32 33-36 37-41 APPENDIX............................................................................................ 42-47 -47- ��-�� SUMMARY AND FINDINGS The Joint Debt Advisory Committee — an ad hoc group of elected officials and staff of the City of Saint Paul, Saint Paul Public Schools, Ramsey County and the Saint Paul Port Authority — has been active on a periodic basis for twenty years. More recently, due to state legislative mandates, the City of Saint Paui, Saint Paul Public Scfiools and Ramsey County have formed the Joint Property Tax Advisory Committee (JPTAC) and initiated a number of cooperative ventures to control property taxes in corporate Saint Paul. The Joint Debt Advisory Committee has become a Subcommittee of the JPTAC. This report of the Subcommittee will be forwardeci to the participating jurisdictions by the JPTAC with a recommendation to adopt it as a management tool for each jurisdiction, since the report makes decisions about capital improvements and debt in the years 1997 through 2001. This report estimates future capital investment and property tax (general obligation) debt conditions for the period 1996 through 2000 within the corporate limits of the City of Saint Paul. This report also forecasts indicators of the impacts of future debt issuance in the areas of credit rating, ability-to-pay, property taxes and operations. For each of these indicators, the Subcommittee has established target ranges against which actual performance and future estimated outcomes can be evaluated. The principle findings of this report are: . The aggregate level of capital investment for ail four jurisdictions is estimated to decline from $152,324,900 in 1996 to $90,776,800 in 2000. . The aggregate level of general obligation debt for ail fourjurisdictions is estimated to rise modestly from $398,352,000 in 1996 to $407,570,900 in 2000. . The combined credit rating debt burden indicators are estimated to remain relatively constant from 1996 to 2000. . The ability-to-pay indicator of combined debt service property tax levies per household is estimated to rise from $321 per household in 1996 to $392 per household in 2000. . The property tax indicator of the combined debt service tax bill on two representative residentiai properties with market values of $70,000 and $100,000 is estimated to rise on average by 4.4% per year. . This report estimates that future debt service tax levies for the period 1996 through 2000 do not change markedly the balance between property taxes levied for debt service, and those levied for operations for ali four jurisdictions. This report also contains a number of other findings for individual participating jurisdictions, as well as the relative conditions among jurisdictions. These findings are best known through a complete review of the report. a�-11 amount applied is the same percent detailed in the footnote for Table V. The number of households and the number of persons per household, as shown below, are based on Metropolitan Council estimates for the City for 1989 and 1991 through Z005 and U.S. Census figures for 1990. Projections for 1996 through 2000 are frozen at the 1995 level. Number of Households – Citv of Saint Paul 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 111,283 110,249 110,424 110,476 110,430 110,347 110,355 110,355 110,355 110,355 110,355 110,355 Tax Bill for Debt Service Tax Levies – Saint Paul Resident Persons Per Househoid – City of Saint Paul 2.37 2.37 2.37 2.37 2.37 2.37 2.37 2.37 2.37 2.37 2.37 2.37 Debt service tax levies for each entity, as described above, are divided into the total taxable net tax capacity for the City for each year. The resulting tax rate is then applied to the tax capacity of a$70,000 home and a$100,000 home to determine the projected tax bill for debt service levies oniy. The City's taxable net tax capacity and the taxable net tax capacity for a$70,000 and a$100,000 home is as follows: Payable Year 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 City of Saint Paul Taxable Net Tax Ca�aciN $232,147,532 191,430,438 195,340,203 185,397,217 180,614,331 172,801,915 169,558,493 173,323,404 180,188,972 181,990,862 183,810,770 185,648,878 $70,000 Home Taxable Net Tax Capacitv $1,526 720 720 700 700 700 700 700 700 700' 700' 700* $100,000 Home Taxable Net Tax Capacitv $2,276 1,320 1,320 1,280 1,280 1,280 1,280 1,280 1,280 1,280' 1,280' 1,280� ` Assumes no change in the State properly tax system affecting c/ass rates applied to residential homestead property. '�- -46- �� i Table VI — Overlapping General Obligation Debt as Percent to Total The percentages shown in Tabie VI are based on the debt figures used in Table V. Credit Rating Indicators Total General Obligation Debt Per Capita This indicator uses the same debt figures developed in Table V. City population figures for 1989 and 1991 through 1995 are Metropolitan Council estimates. The 1990 population figure is from the U.S. Census Bureau. Population projections for 1996 through 2000 are frozen at the 1995 population level. Total General Obl�ation Debt to Indicated Market Value This indicator uses the same debt figures developed in Table V. "Indicated Market Value" is also known as true or full market value. The IMV is based on the County Assessor's Estimated Market Value for the City divided by the sales ratio for each year as determined by the State Department of Revenue. The sales ratio represents the overall relationship between the Estimated Market Value of property within the community and the actual "arms length" selling price when the property changes hands. The sales ratio for projected years 1997 through 2000 has been frozen at the current level. IMV projections for 1998 through 2000 inciude a 1% growth factor over the previous year. City Estimated Market Values and the applicable sales ratios are as follows: Payable Year 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 ' Preliminary. Ability-To-Pay Indicators EMV 7,230,546,510 7,418,249,107 7,589,260,607 7,484,557,955 7,443,215,152 7,379,988,200 7,394,297,000 7,418,519,500 7,581,102,550' 7,656,913,575 7,733,482,711 7,810,817,538 Debt Service Levy Per Household Saies Ratio 92.6% 90.3 90.5 93.4 94.0 94.1 90.9 89.5 89.5 89.5 89.5 89.5 � 7,808,365,562 8,215,115,290 8,385,923,323 8,013,445,348 7,918,313,991 7,842,707,970 8,134,540,154 8,288,848,603 8,470,505,642 8,555,210,698 8,640,762,805 8,727,170,433 Debt service ievies are the tax levies spread by each entity annually to pay for debt service solely supported by taxes. The debt service levies are net of Homestead and Agricultural Credit Aid (HACA), paid directiy to the entity by the State. The Ramsey County debt service levies represent only the portion spread on the City of Saint Paul tax base. The proportional �� -�t � RECOMMENDATIONS The Subcommittee recommends that: . Target ranges for three indicators be established for the term of this report: . Combined debt per capita not to exceed a range of $1,450 to $1,550; . Combined debt to indicated market value not to exceed a range of 4.5% to 5.5%; . Combined debt service property tax levies per househoid not to exceed a range of $350 to $400. . The governing boards of all four organizations represented on the Joint Debt Subcommittee adopt the report as a management tool for decision-making regarding capital improvements and debt for the next five years; and . The City of Saint Paul, Saint Paul Public Schools, and Ramsey County expand their current efforts at collaborative planning for joint use of current and future facilities, as well as opportunities to transfer facilities among them as facility needs change; and . The participating jurisdictions meet annually to update this report and evaluate compliance within the adopted target ranges. -45- -2- ��-� r � - a�_� 1 INTRODUCTION The City of Saint Paul, Independent School District 625 (Saint Paul Public Schools), the Saint Paui Port Authority and Ramsey County have formed the Joint Property Tax Advisory Committee and its Joint Debt Subcommittee to address property tax levels and the role of debt. This effort is a continuation of a long-standing tradition of cooperation among these jurisdictions, beginning in 1977, to proactively manage their combined debt position. As a new committee, the Advisory Committee and Debt Subcommittee have reviewed both their objectives and strategies. The Subcommittee has adopted the following Mission Statement and strategies: Mission Statement The City of Saint Paul, Independent School District 625 (the Saint Paul Public Schools), the Saint Paul Port Authority, and Ramsey County agree to work together to: coordinate the financing of the area's capital needs, keep capital expenditures within agreed upon debt level targets, and jointly plan for meeting the capital needs of each jurisdiction. Strategies To achieve the goals set forth in the Mission Statement, the four jurisdictions agree to: • Maintain overlapping general obligation debt ratios within a range approved by the four jurisdictions for the five-year period of 1996 through 2000; • Be responsible for notification to 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 the immediate debt-related conditions of the four jurisdictions which would impact property taxes of Saint Paui residents, and take appropriate action to remain consistently within the debt level ranges approved by the four jurisdictions; • Identify annually intermediate to long-range capital spending and debt conditions which would impact Saint Paul residents' property taxes, and fit proposed spending to the group's debt management goals; and • Exchange information and expertise during each jurisdiction's capital improvement budgeting process, such that the jurisdictions can eliminate duplication, share facilities where appropriate, and provide the taxpayers with the greatest return for the jurisdictions' capital improvements. Table V— Total General Obligation Debt by Issuer Total general obligation debt by issuer consists of the foilowing types of debt: Rams� CountX Consists of ali County general obligation debt outstanding as of December 31 of the year shown, with the exception of library and watershed bonds paid by taxes coflected all or partially 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. 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 taacable net tax capacity. The full debt amount and applicable Saint Paul share is as follows: Payable Year 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Total County G.O. Debt $ 91,550,000 93,320,000 92,310,000 95,020,000 95,005,000 97,985,000 104,265,000 119,925,000 122,965,000 129,880,000 123,550,000 126,070,�00 % Applicable to Saint Paul 49.6% 51.4 51.4 51.3 51.2 50.4 49.8 49.1 48.3 47.6 46.9 46.2 Saint Paul Portion of County G.O. Debt 45,408,800 47,966,480 47,447,340 48,745,260 48,642,560 49,384,440 51,923,970 58,883,175 59,392,095 61,822,880 57,944,950 58,244,340 Projections for the percent applicable to Saint Paul in 1997 through 2000 assume a continued reduction in Saint Paul's share of the County's value as a whole by 0.7% each year. City of Saint Paul Consists of ali City generat obligation debt outstanding as of December 31 of the year shown, including general obligation debt supported by special assessments and tax increment. General Obligation Water and Sewer Revenue Bonds (paid by enterprise fund revenues) and Como Conservatory Bonds, which are paid by funds in an escrow account, are excluded. Saint Paul Schools Consists of alI School District general obligation debt outstanding as of December 31 of the year shown, including Certificates of Participation which are secured by the full faith and credit and taxing power of the District. Saint Paul Port Authority Consists of all Port Authority general obligation debt outstanding as of December 31 of the year shown and excludes all revenue debt. -3- ' -44- O O N Z � Z � Z ^ c �c0 ¢ O � (7 = a J � U fC C F O '= a QZ 6 Z W a � � 7 N N a ol N �I A m) m mI A mt mI m � � �I 0 �I rn N{ �) W AI ol � ml W 0 0 0 0 0 0 0 0 0 0 o n o r 'OOG (V O �D In O O O � pI N ' 000 N O �O 0000 00 o CJ O O O � O N ' O O O N OI N ° o ° oo ° o ° o ° o ° o m o 0 0 o m r O O O N O W � O O O N O A ' O O O N OI � O O O O O O O � 0 0 0 �- O 19 W 000 t� O b �0 00 W O t0 V O O O � O I l0 0 0 0 0 0 0 0 0 0 o n o 0 00 0�- n cu w ^OOb Nt� th M ° orn" m � o� o a v< o a o � 0000 �ol � � O O O fV O � O O O O � O N no 00 o co ^ O O O M G V °SSo 00 ° r000 o �n w �- 0 0 0 N O O � N 00 00� o ° o o ° o 0 0 o ^ o o � O O O O I O O O O O O O O D O O O ' O G ` So 00 0 O O O O O O' O C ' 00 0 0• o 00 00l o 0 0 0 0 0 o� oo, ' O O O O O O O O O O O O D O O N N 0 0 0 0 0 O O O O O O O G O O N M � O O O O O 0 0 0 0 0 O O O O O O O O O O N N Q 00 0 0l o 0 0 0 0 0 0 0 0 0 0 Q� oo M O O O O O on ooI r G N O O ^ O O O ol O c w o o w 0 o a o e 00 <S < O W N O M -< 0o Sol S 00 00 0 O O O O O �no 0000 000 ooI �n o � m o 0 0 0 0 0 0 0 o u� n o � <o 000 0 0 0000 �n u� n N O O O O O O O O O' ^ b 1 A O O O O O O O O O N I O O � N O O O O O O O O O O W O < O O O O O O O O O O V O N O 00 00 O 000 Cf t0 �o 0000 00000 � o mo 0000 00000 � o V O 0000 OOtO00 O O N N O O O O O O O � O O ' O � a �nc c000 occcc{ e� c �o 0000 0000o n o ro 0000 00o ino w o ro N O O O O O O O N � O A O W M Wo 0000 00�00� o 0 O O O O O O O 1 A O O 1� O W N O O O O O O O O O O N O N N O O O O O O O^ O O � O h n O O O O O O O N O O O N O V] O O O O O O 0 O O O < O N O 0 0 0 0 O< 0 0 0 O O t0 N O O O O O O W O O O O N � n O O O N H O O O O O O O O OI O O O 1� O O th O O O 1� O ^ t0 O O t7 N O O 0 O O O ? 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W� fit -°�j m � 7 v m o � m m U °' o v m - o m t m�: � o r c... a a ¢ � m¢ o=(A £ W J o m LL�= Y o m o"> °�° d o m a � ¢ ¢ a (J R � L Co y Z c y m ¢ F� o c Q a� m a c U � Q �� n� c c °a :: a c�i .E I� `o Q y � � ¢ x� m m o�£ 3 O � e i. m y m O � LL � U o¢> v Z m s � c r o O � O N NF «5 c'�a O f 6f q• >y�LL F �f �2 c� m c1 a� � 1- Q Z � O L m m m?�� 0 7 F r m m m m m 7 N L c � p Q o d� m 4i ¢�° a � F 2 Z�a(>F6�cNU N ZQ�1�¢ Z N�QUUO U�U� y Z� p r o � I I I c � i Q o I � � I a o 1 I � � � � � ¢ m U a` ii N a` ¢ a` y -43- �� HISTORICAL BACKGROUND � " _ � \ In 1977, these four jurisdicfions - the City of Saint Paul, Saint Paul Public Schools, Ramsey County and the Saint Paul Port Authority - pioneered the concept of coordinated debt management. Their objectives were to mitigate the costs of capital financing by coordinating their efforts. They received nationai recognition in 1989 by the Govemment Finance Officers Association (GFOA) with its Louisville Award for innovation in financial management and the Award for Excellence for debt management. The Louisville Award is given rarely and only in recognition of exceptionat creativity in addressing public sector financial management issues. In addition, the national credit rating agencies have recognized this effort on an ongoing basis. This program has also become the basis for other major public institutions to indicate coordinated capital investment plans. METHODOLOGY 7his report addresses both public capital infrastructure investment and the role of debt. Debt is viewed as a financing tool, used to accomplish the overall objectives of reacting responsibly to the dual demands of infrastructure replacement and accomplishing new initiatives. Therefore, while much of the report focuses on debt managemeni, capital spending is also summarized to show the overall leveis, uses and sources of funding. The report covers two distinct periods: Historical for the years 1989 through 1996 and future for the years 1997 through 2000. These time periods permit a long-term perspective for the trends, occurring both within jurisdictions and combined among the jurisdictions. The report utilizes indicators to symbolize the impacts of debt in a number of categories. The Subcommittee reviewed a range of potential impact areas, and decided to monitor four areas: credit rating, property tax, operational/capital financing interFace, and abitity-to-pay. Within each of these four financial impact categories, one or more indicators show specific trends over the two time periods. Each indicator is profiled in four ways: definition and purpose, target range, trend, and summary. The Subcommittee has established target ranges for each indicator. The target ranges are policy objectives that determine individual and combined compliance with the objectives of the Subcommittee. The established target ranges will remain constant for the entire term of this study. These constant target ranges wili be used over the term of the study to evaluate the actual performance of the participating entities. The Subcommittee recognizes that, based on the needs of the participating jurisdictions, actual performance may cause one or more indicators to exceed their target ranges. The Subcommittee's objective is to manage actual performance such that a majority of the indicators comply with their target ranges. The informationai sources for establishing the indicators are the participating jurisdictions. Wherever possible, information has come from financial reports, capital and operationai 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. Specificaliy, as to the debt information, the approach has been to include, as much as possible, only that type of debt which corresponds to that used by the credit rating agencies, or the debt that has a potential impact on property taxes. Therefore, certain types of debt are not included in this report, most notably revenue-supported debt issued primarily by the City and Port Authority. Detaited information relating to fhe types of debt included and excluded for each jurisdiction is provided in the Appendix to this report. For the City, general obligation debt used for the credit rating indicators (debt per capita and debt to indicated market value) excludes general obligation debt supported by water and sewer enterprise funds and Como Conservatory bonds (which are escrowed). General obligation debt used for the ability-to-pay indicators and the operational/capital finance interface indicator includes only debt paid by taxes, excluding revenue debt and general obligation debt supported by special assessments, tax increment, utility revenues and escrowed funds. The County debt exciudes $3,465,000 Certificates of Participation issued in April 1996. The Certificates are payable from sublease payments made by Ramsey Action Programs, Inc., (a non-profit community action agency), to the County. The Certificates are not secured by the fuil faith and credit of the County. The School District debt does include Certificates of Parficipation, which in the DistricYs case, are paid from tax levies and are secured by the full faith and credit of the District. The Port Authority debt consists of general obligation debt issued in the 1960's and 1970's, and a 1994 general obligation issue, all of which are payabie solely from ad valorem taxes spread on all taxable property within the City. The general obligation debt is backed by a pledge of the full faith and credit of the City, and tax levies were certified upon the sale of the bonds. All other outstanding debt of the Port Authority is payable solely from various revenue sources, including revenues generated by financed projects, tax increment, limited taxes and reserve funds. Also, the report covers only the corporate limits of the City of Saint Paul, and as such, only a portion of Ramsey County is included in the study area. This situation causes iwo adjustments in the amount of County debt included in the study: first, the County's General Obligation Library Bonds of 1989 and 1994 and all Watershed Bonds are excluded because the issues are repaid by taxes collected exclusively outside of Saint Paui or by taxes coilected in special taxing districts which are all or partially outside of Saint Paul; and second, the County's remaining eligible debt is pro-rated based on the proportion of City property tax base (tax capacity) in the County, both historiral and projected over the study period. For 1996, the share is 49.1 %. No attempt has been made to identify and segregate either capital spending or debt into those improvements occurring within the City. The tables which show the County's annual capital investment represent County-wide capital spending. The operationallcapital finance interface indicator, showing the County's debt service levy to the total tax levy, represents full County- wide levy figures, not just the portion spread on the Saint Paul tax base. The ability-to-pay indicators, however, are based on debt service levies that have been reduced to represent only the City's share of the levy. �t�- � � APPENDIX This Appendix contains statistical data, sources and detailed footnotes which support the analysis contained in this report. Table I— Total Annual Capital Investment Total capital spending for each entity is based on capital improvement budget documents for historical data and staff projections for years 1997 through 2000. Tables II/IV — Annual General Obligation Debt Issued to Annual Capital Investment In addition to capital spending data referenced above, annual general obligation debt issued by each entity is listed on the following page and inciudes all general obligation debt backed by the full faith and credit of the issuing entity. The only exclusions are Generai Obligation Library Bonds and Watershed Bonds issued by Ramsey County which are payable from taxes collected all or partially outside Saint Paul. -5- -42- �� -� � Each jurisdiction has maintained their high credit ratings for general obligation bonds. The ratings are as follows: General Obligafion Debt Only Moody's Investors Srandard & Poor's 7urisdiction Service Ratings Services City of Saint Paui Aa Aq+ County of Ramsey Aaa Aq+ Independent School District #625 Aa AA (Saint Paui Schoois) Saint Paul Port Authority Aa AA+ This page intentionaily left biank. The Appendix contains statistical data, sources and detailed footnotes, which support the analysis contained in this report. Finally, the report includes both conclusions and recommendations of the Subcommittee with the intent of providing direction to accomplish both the Subcommittee's and the doint Property Tax Advisory Committee's objectives. SUMMARY OF PARTICIPANTS' INITIATIVES Each participating jurisdiction is making infrastructure investments to accomplish their specific initiatives. These initiatives are based on the individual conditions and objectives of each jurisdiction. This section summarizes by participant these conditions, objectives and initiatives. City of Saint Paul Saint Pauf is the State Capital and Minnesota's second iargest city. The City covers an area of 56 square miles and is situated wholly in Ramsey County. The area has a balanced and diversified employment picture, with no single industry sector dominating. Saint Paul's 1990 U.S. Census figure of 272,235 indicates a stabilization of the City's population. The City has initiated a number of public policies, in pursuit of which major capital investments have been and are anticipated to be made. Over the years, Saint Paul has built an extensive system of police and fire stations, parks, recreation centers and other recreation facilities, libraries, streets, bridges, and sewers that require maintenance, replacement, expansion and additions. Enhancement of the Downtown and the Riverfront Saint Paul's revitalization of its central business district and riverfront is focused on defining appropriate new markets for a downtown core that are realistic and sustainable, such as emphasizing office space for key service businesses and public employers. The City is also -41 - -6- �'� - � working to shift the market perceptions about the riverfront away from the heavy industrial uses of an earlier era, toward an accessible, environmentally sound and economicaliy viable site for a variety of community attractions and commercial enterprises. The City continues to place its emphasis on development efforts that will demonstrate measurable growth on the tax base and in the number of jobs created. Wabasha Bridge The Wabasha Bridge is a$36 million replacement project that will be completed in 1998. Funding for the bridge, one of 280 bridges in Saint Paul and the fourth major Saint Paul bridge across the Mississippi River that has been replaced or renovated in the past ten years, has come from the issuance of City general obligation bonds, as well as State and federal financing. The bridge is the chief link between the Capitoi Complex and the riverfront. It is aiso expected to serve as a major commercial intersection between the downtown core, the Capitol, the river and the West Side of Saint Paul. Science Museum of Minnesota The Science Museum made a major commitment to downtown Saint Paul by choosing a site on the downtown side of the Mississippi River (ailowing a potential link to the riverfront for the first time). In return, the City has made financing commitments of up to $14 million to the Science Museum, artd the State has committed approximately $30 mitlion to this project. The Science Museum will provide a substantial amount of the remaining funding through private contributions. This new $95 million facility, located between the Civic Center and the rivertront, is expected to begin construction in 1997 and promises to be one of the nation's premier science museums. Attendance is projected to increase from approximately 840,000 visitors annually to up to 1.5 miliion visitors annually. Employment at the facility is expected to increase from the current figure of 310 FTEs to 450 FTEs after the new facility is compieted. Civic Center F�pansion In November 1993, the City's HRA issued $65 miilion Sales Tax Revenue Bonds to finance capital costs for the expansion and improvement of the Sainf Pau! Civic Center complex, including additional exhibition hail space totaling 75,000 square feet, 25,000 square feet of new meeting rooms and a 25,000 square foot banquet facility. The groundbreaking took place in November 1994. Project completion is scheduled for 1997, and the facility will continue to operafe during construction. The principle source of payment of the Sales Tax Revenue Bonds is a portion of a City-wide one-half cent sales tax, which became effective September 1, 1993. In addition to the expansion and improvement at the Civic Center, the City's HRA is undertaking the construction of a 450-space parking garage located beneath the new exhibit hall. The new garage was financed in 1995 from proceeds of $7.5 miliion Parking Revenue Bonds, $1.5 miilion Subordinate Notes and equity from the City's Parking and Transit Fund of $1,Q53 million. The debt will be payable from revenues of the City's Parking and Transit �und. The garage is scheduled for completion in early 1997. Enhancement of the Neighborhoods Neighborhood Investment The City°s neighborhoods have long been one of its strongest, although sometimes less visible, assets. Neighborhood retail and commercial activity is strong, and continues to improve. -7- �1'l -'1 � Operational/Capital Finance Interface Indicator Debt Service Tax Levy to Total Tax Levy - Ramsey County �oo.o°� 90.0% 80.0% �o.o�� so.o°� 50.0% 4o.o°k 3o.o°k 20,0% �o,o�ro o.o% 1959 1990 1991 1992 1993 '1994 '1995 �996 1997 '1998 1999 2000 Payable Year Ramsev Countv Debt Service Tax Levies Total Tau Levy D/S Levy to Total Tax Levy t9ss �sso $6,048,031 $6,504,985 $106,233,714 $�11,808,883 5.7% 5.8% 1991 �992 1993 1994 $9,563,751 $10,624,554 $10,453,192 $9,934,215 $127,125,508 $134,23'I,S49 $134,345,396 $139,060,602 7.5% 7.9% 7.8% 7.1% '1995 lsss '1997 7998 7sss 2000 DebtServiceTaxLevies $9,238,680 $10,625,352 510,73'I,'100 $13,02'1,138 $'14,503,975 $16,200,931 Total Tax Levy $140,300,667 $143,084,573 $158,040,226 $169,728,586 $180,441,492 $193,621,324 D/S LOVy to Totel TaX LeVy 6.6% 7.4% 6.8% 7.7°k 8.0% 8.4% Note: The tax levy amouMs shown above represent levies spread on all taxable properiy within Ramsey County, not just a portion af6ibutable to the City of Saird Paul. � ��-� Operational/Capitai Finance interface Indicator Debt Service Tax Levy to Total Tax Levy - Saint Paul Schools 1 oo.o^io so.o°io so.o^� �o.o^io so.o°� so.o°io ao.o°ro so.o^io 20.0°� �o.o�io o.o°ia 1989 1990 1997 '1992 �993 1994 1995 '1996 1997 1998 1999 2000 Payable Year Saint Paul Schools Debt Service Tax Levies Total Ta�c Levy DIS Levy to Total Tax Levy 1989 '1990 '1991 $6,322,838 $7,'102,000 $5,575,000 $90,180,640 $81,542,977 $92,530,664 �.o�ro a.�� s.o�� '1992 '1993 '1994 $1,977,000 $2,759,000 $7,51'1,638 $99,405,585 $98,856,365 $'104,733,603 2.o°io 2.a^� �.2°� 1985 't996 't997 'f998 1999 2000 DebtServiceTaxLevies $10,426,000 $'15,�4�,000 $16,8�4,000 $'17,519,539 $'19,305,978 $20,698,892 TotalTaxLevy $1'I'1,431,635 $120,234,734 $124,450,000 $122,683,539 $126,387,978 $13'I,50'1,892 D!S LeVy to Totdl TaX Levy 9.4% 12.6% 13.6% 14.5% 15.3% 15.7°k Note: Levies collected in tire years shown above are athibutable to the Districf's fiscal year ending June 30 of the next calendar year. For example, taxes collected in 1995 are used in the DistncPs fisca/ year ending June 30, 1996. -39- a�r-�� Encouraging this activity has a double benefit of both strengthening the tax base and providing safe and thriving neighborhoods. The City has adopted a street maintenaRCe program that in the next 13 to 15 years witl pave alt remaining unpaved or older, paved streets in Saint Paul's neighborhoods. Approximately $6 million will be committed in 1996 and 1997, and $8 miilion in 1998, 1999 and 2000. The City will seek to target its other development dollars in areas receiving the paved streets and related public improvements. Midway Marketplace The first stores at Midway Marketplace opened their doors in the fall of 1995, fundamentally changing the retail market in the Midway neighborhood. Montgomery Wards, Ward's Auto Express, CUB Foods, PetSmart, Paper Warehouse and Mervyn's of California are open now; K-Mart is expected to open in the spring of 1997. Upon completion, this development will be a $45 million, 482,554 square foot "power center" that is expected to retain 500 permanent jobs, create 1,500 new permanent jobs, and support up to 650 construction jobs. Preservation of City Infrastruature Preserving Existing Facilities Each year, the City capitai 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. The 1996 and 1997 budgets have committed $1 million to this purpose. Capital Improvement Process City departments, District Councils and other parties annually submit proposals for capital projects. These proposals are evaluated and prioritized by the Saint Paui Long-Range Capital Improvement Budget Committee (CIB Committee) and its task forces. Based on the recommendations of the CIB Committee, the City Council adopts an annual capital budget and a five-year'Tentative Program of Commftments," which estimates future appropriations needed to complete initiated projects. Projects are categorized with one of 11 capital functions: Streets, Street Lighting, Traffic Engineering, Bridges, Sewers, Parks and Open Spaces, Libraries, Housing and Economic Development, Police, Fire and Safety, and Special Facility Support. 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 careful and thorough analysis of each capital improvement proposal, including the long-range impact on operating costs and revenue generation. It is essential to recognize the close tie between the City's operating and capital improvement budgets. New or expanded facilities financed through the capital improvement budget may increase the need for operating budget resources. Conversely, appropriate capital investments can decrease operating expenses. But operating budget decisions, such as deferral of maintenance, can also affect the capital budget. � � `l, �� Saint Paul Public Schools Current Conditions The Saint Paul Public Schools presently own or lease a total of 79 facilities comprising a total of 6,948,741 square feet. Approximately 50% of facilities owned by the District are more than 50 years old. A recent facility utilization survey indicates that, since 1987, the District has added 264 elementary classrooms for a total of 1,215, with a capacity of 25,955 students. At the secondary level, the functional capacity has been determined at 7,987 students forjunior high/middle schools and 12,302 at the senior high school (including Arlington High School). As of October 1, 1996, the District had a total enrollment of 41,664 students with 25,263 in the elementary level and 16,401 in the secondary levels. The total enroliment number does not include students enrolled in the following programs: full-time special education, area learning center and evening high school. The District maintains comprehensive facilities for Special Education and serves more than 5,000 students from newboms to 21-year-olds, in thirteen areas of etigibility. Community Education uses several facilities within the District — some of them leased — and also utilizes space donated by businesses, for services that include: General Programs, Family Education, Employment and Training, Adult Literacy and Special Needs. Trends and Special Programs Several trends in space utilization merit further consideration and will continue to place demands on District space. Some of these trends are: special educafion (including early childhood special education), family education/leaming readiness, desegregation/reassignment policies, TESOL (Teaching Engtish to Speakers of other Languagesj growth, computer technology proliferation, and such miscellaneous program growth as all-day kindergarten, parent resource centers and in-school suspension. Chief among all trends, however, is population growth. Within five years, the District is projecting a shortage of space for approximately 1,000 students at the elementary level. The District does, however, project that it will have adequate space in the junior high/middle schools, and the senior high school space needs will be met with the opening of Arlington High School in fall 1996. The District has adopted and recently revised a District Technology Plan that has clearly defined objectives, and a prioritized list of specific actions and programs needed to achieve these objectives. In 1994, the District also adopted a technology improvement plan which provides over a three-year period for upgrades to communication systems, compufer networks and video systems. The District's most recent estimate for implementing this pian is more than $17 million. There has also been a concerted effort to increase energy conservation throughout the District. Since 1982, the District has invested more than $2.5 million (a significant amount of which was grants) in energy projects, and now realizes an annual energy savings of almost $154,000 as a result of those investments. In addition, the District has entered into a Peak Controlled Rate Program with Northern States Power Company, and will subsequently realize approximately $97,000 ann�ally in electrical cost savings. !n spite of growth of the physical plant, the District has cut its energy budget by $500,000 in the last three years. a�- �1 Operational/Capital Finance Interface Indicator Debt Service Tax Levy to Total Tax Levy - Cify of Saint Paul �oo.o�� so.o^� ao.o�� o.o^� so.o�� so.o�� ao.o�� 30.0% zo.o% 10.0% o.o% Citv of Saint Paul De6t Service Tax Levies TotalTax Levy D/S Levy to Totai Tax Levy Debf Serviee 7ax Levies Total Tax Levy DIS Lery to Totai Tax Levy 1989 '1990 1991 1992 1993 1994 �995 1996 'i997 '1998 1999 2000 Payabie Year 1989 1990 7991 $13.082.792 $10,989,360 $�1.496.813 $53,773,946 $58.282.582 $63.320.821 24.4°k 18.9°k 18.2% 1995 1996 1997 $}4.578,338 $'l4,212.875 $'l4,374.387 $65,348,085 $64,690,287 $64,699,711 22.3% 72.0% 722% 1992 $12.489.955 $64.574.549 19.3°h 1998 $'l4,575,685 $64.734.198 72.5°k 1993 $12.711,327 $65,663,448 19.4°h 1999 $14.G30,'!02 $66,045,477 Y22°k 1994 $13,078,174 $65.617.967 19_9% 2000 $74,367.699 $67.38:i.134 21.3% � -38- `��f OPERATIONALlCAPITAL FINANCE INTERFACE INDICATOR Debt Service Tax Levy to Total Tax Levy Definition and Purpose: The total tax levy has an operational component and a debt service compone�t. This indicator shows the proportional share which 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 situation. Target Range: The ievel of this indicator should differ for different types of jurisdictions. No target ranges were established with the expectation that individual jurisdictions would address their own situations. Trend: The City shows a fluctuation between a low of 18.2% in 1991 to a high of 24.4% in 1989. The Schooi District shows a low point of 2°lo in 1992 to a high point of 15.7% in 2000. The County shows little variation, moving from 5.7°/a in 1989 to 8.4% in 2000. Summary: The Port Authority has been excluded because it relies largely on other revenue sources and uses tax levies for limited purposes. The City and the County show a relatively narrow band of variation (less than 7% and 3%, respectively). The School District is estimating a far larger increase in the proportion of its levy dedicated to debt service. �� -�t � Funding/Population The Plant Planning and Maintenance Department manages the capital funds for all facilities. In 1995/96 the revenue firom tax levies and bond sales totaled approximately $27.6 miliion. In addition, the District recently sold lease participation certificates in the amount of $50 million to finance the construction of a new high school. Several major factors contributing to the need for construction, remodeling, capital improvements and deferred maintenance in the District inciude: aging buildings, program changes, code requirements, environmental safety mandates, energy conservation and, of course, increased student population. Building construction projects recently completed or under construction include: the River Front Educational Center (completion of the top three floors); additions to Prosperity Heights, Sheridan, Horace Mann, and Battle Creek Elementary Schools; additions to Ramsey Junior High School and Harding and Como Park Senior High Schools; and construction of the Ronaid M. Hubbs Center for Lifelong Leaming and Arlington High School. The District has launched a five-year plan to upgrade all facilities to ensure handicapped accessibility and will be substantially complete in 1998. Capital funding projections indicate a decrease in reve�ue. While the Plant Plan�ing and Maintenance Department will have revenue available from Alternative Bonds ($11 million) each year, the DistricYs authority to sell $9 million per year in Capital Bonds expired in 1996 and is the principle reason for the indicated reduction in revenue. Though several projects already have been completed or are planned under the capital bonding program, many outstanding needs will not be met unless additional bonding authority is granted or a new revenue source is identified. Long Range Facilities Plan The Long Range Facilities Plan acknowledges that the Saint Paul Public Schools continue to face growing enroliment, especially at the elementary school level. The District must plan for additional elementary space or implement a significant change in utilization practices at the elementary level within two to three years, or both. AII space decisions must consider the District's adopted commitment to lifelong learning. The most critical unfunded needs ident�ed include space for elementary students and complete technology upgrades. A longer-term projected space shortage at the senior high school level is also anticipated, but is not estimated at this time. This latter space shortage is to be expected given the increasing population at the elementary level, and the DistricYs adopted goal of significantly reducing the number of high school drop-outs. The number of Special Education students requiring residentiai, community-based and mainstreamed environments is increasing yearly. The District anticipates additional space will be needed to accommodate these expanding programs. As the DistricYs enrollment grows, there continues to be a pro6lem in finding sufficient artd adequate space for Community Education activities. The relocation of family education administrative functions, presently located at 740 York Avenue, is expected to cost $72,000 per year in lease costs. -37- -10- �-� -�, i Saint Paul Port Authority The Saint Paul Port Authority, organized in 1932 and existing under the laws of the State of Minnesota, is a redevelopment agency within the meaning of Minnesota Statutes. The Port Authorify is considered a pofitical subdivision and the area in which it may exercise its public power is generally coterminous with the boundaries of the City of Saint Paui. By its enabling legislatiort, the Port is required to facilitate commerce within the Port district through the creation of development districts and to conduct economic development activities in and for Saint Paul and the East Metro region. The governing body of the Port Authority is a Board of Commissioners comprised of seven members, two of whom must be members of the Saint Paul City Council. Members of the Board are chosen by the Mayor, with the approval and consent of the City Council, and serve overlapping six-year terms. The Port Authority provides three primary product lines to its industrial customers: asset-based financing, developable site opportunities, and business assistance services, including customized job training for newly created positions. In addition, the Port Authority is active in East Metro economic development through partnerships with neighboring communities and regionai organizations, and manages more than $400 million in loans and properties on behalf of private investors. The Authority may, after pubiic hearing, create development districts within its area of jurisdiction, and make public improvements therein and acquire and lease or sell land and buildings for industrial and other economic uses. The Authority may also acquire, construct and lease or sell industrial, commercial and other revenue-producing projects, enter into revenue agreements for the financing thereof and issue revenue bonds payable from revenues derived from such agreements. Certain sovereign powers of the State delegated to the Authority include: (1) the power to acquire property by condemnation and (2) the power to levy ad valorem taxes to pay debt service on general obiigation bonds issued by the Authority with the approval of the Saint Paul City Council. City Council consent is also required prior to the issuance of Port Authority genera( obligation revenue bonds. The Port Authority cannot issue general obligation bonds without City Council consent. The Port Authority, as the industriai development organization for Saint Paul, has rectaimed more than 100 acres of land and created or retained more than 5,000 industrial jobs in the past three years. Industrial parks currently being developed, or in the planning phase ihclude: Crosby Lake Business Park The Crosby Lake Business Park is a 40-acre tract of once fallow industrial land being developed along Shepard Road on the bluffs overlooking the Mississippi River at Interstate 35E in Saint Paul. Based on current negotiations, all parcels in the business park are anticipated to be sold by late 1996 or early 1997. Upon completion, the Crosby Lake Business Park will contain 26 developable acres and will house an estimated four to six new manufacturing or ��-�� Ability-to-Pay Indicator Tax Bill for Debt Service Tax Levies -$100,000 Home in Saint Paul <�� F:!s:�1 �� St50 sioo F� 0 Payable Years A Ramsey County (City Portion) ■ Ciry of SaiM Paui ❑ Saint Paul Schools � Saint Paul Port Authority Tax Impact on 5100,000 Home Ramsey CouMy (City Portiw�) City of Sairrt Paul s�rn Pa�i su,00i5 Saim Paul Pat Authoriry Tdal Tax Bill Ramsey County (Cdy Portion) City of SaiM Paul SaiM Paui Schods SaiM Paul Port AuUrordy Totai Tax Biil 1989 1990 1991 $29 $23 $33 128 76 78 sz as 3s i6 13 12 $236 $160 $761 '1995 1996 '1997 $35 $39 $37 110 105 102 79 tf2 120 6 6 6 $�t0 $261 5265 '1992 7993 1994 s�e Ssa sa7 86 90 97 ya 2o ss 78 9 8 $155 5156 $197 1998 1999 2000 $44 $47 $52 103 702 99 125 134 1A3 5 5 5 $'L'/7 8289 $296 Note: For taxes paya6le in 1989, gross tax capadty' was used to detemrne property taxes. Begnrnng wiflr taxes payable in 1990, net tax capacity 2placed gross ta�r capacity as the basis on which taxes are levied. NetWx capacity dilfers fiom gross tax eapaciry primanry by havinglower values for homesteaded residen6al property and cerfain agrfwitu2t properry. -11- -36- �sas isso �ssi �s92 �ss3 �esa �s9s �sss �� sse �sss zaao a�l • 1 I This page intentionally left blank. industrial facilities in approximately 400,000 square feet of space. The $6 million project is expected to result in approximately 500 new and/or retained jobs for the City. Arlington Business Center The Ariington Business Center is a 69-acre site adjacent to Interstate 35E north of downtown Saint Paul, between Maryland and Arlington streets. Land sites shouid be ready for building by mid-1997. Upon completion, the park's first phase will contain 21 developable acres and wili house an estimated four to five new manufacturing or industrial facilities in approximately 350,000 square feet of space. The $13 million project is expected to result in approximately 400 new and/or retained jobs in the City. Williams Hill The Authority is now seeking approval for the redevelopment of an approximately 30-acre tract of land on the northeast intersection of Interstate 35E and University Avenue. Upon completion, the project is expected to provide 25 developable acres and 325,000 square feet of new construction, which wifl generate approximately $550,000 per year in tax increment. In addition, approximately 325 new jobs are expected to be created and/or retained. Ramsey County Ramsey County provides services to its residents in five major areas: Human Services, Public Safety and Justice, Public Health, Parks and Public Works and Central Administration. The County owns a large number of facil"�ties and other infrastructure throughout the County necessary in providing these services, Ramsey County has a capital improvement program process and bonding authority, in order to finance the capital needs of all of these facilities. Capital Improvement Program The Courrty Board established the capitat improvement program process, including a citizens' advisory committee, in 1987. The Capital Improvement Program Advisory Committee (CIPAC) is made up of fourteen citizens appointed by the seven County commissioners. Ramsey County's Capital Improvement Program (CIP) budget process begins with departments requesting 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 Improvements. Major Projects, Equipmenf Replacement Schedule Projects and Building Improvements are separated firom what are generally considered more regular capital maintenance projects for discussion and recommendation purposes. Regular Projects The County Board established the following priorities for rating individual capital projects: 'I) Protect Life/Safety, 2) Maintain Public Health, 3) Replace Facility, 4) Maintain Physical -35- -12- ��-�� Property, 5) Reduce Operating Costs, 6) Protect Property, 7) Provide Public Service, 8) Provide Pubfic Convenience, and 9) Enhance Counfy Image. CIPAC members individually rank requested regular projects. Staff from the County Manager's Department, Property Management, and the County Attomey's Office also individually rank the regular projects, and the two ratings are then combined. This Combined Rank is used to set overall regular 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 projects are repair/replacement and maintenance projects that maintain capital facilities and infrastructure. These projects should help improve operating efficiencies and offset increased costs for operations and repairs. Major Projects Major Projects requested by departments include: a suburban court facility, combined familyfjuveniie courts, a mentaf fiealth/defox facitify, a public works garage, an aduff defention center and a juvenile detention center. These projects have a total cost which would be too expensive to fi�ance all at once. The projects are prioritized annually by the County Board with recommendations from the CIPAC and the County Manager to decide which project, if any, will be included in the annuai bond sale. The adult and juvenile detention facilities have received the highest priority and have been financed since 1994 on a phased basis, which wili be continued through 1998. The other projects will be considered for financing in future years, depending upon their priority and the County's debt leveis and debt service compared to industry benchmarks_ Equipment Replacement Schedule This program provides for scheduled replacement of equipment for Parks and Recreation, Public Works, Community Corrections and Sfieriffs Departments from tax levy funds. Funds are used annuaily to purchase equipment such as squad cars, road construction, maintenance equipment and grounds maintenance equipment. Building Improvements The Ramsey County Government Centers East and West currently collect rent from occupants of those buildings. Included in the rental rate is an amount to finance building improvements which will be needed in the future. A five-year plan is prepared annuaily to fund capital improvement and building maintenance improvement projects in these buiidings from rental revenue. Debf Strategy In November 1992, Ramsey County became the only Home Rule Charter County in the State of Minnesota. Most debt and building fund levy limits and other restrictions established under previous statutes no longer apply, giving Ramsey County the opportunity, and the responsibility to establish realistic and affordable capital improvement levies for debt service and a Capital Improvement and Equipment Replacement levy (pay-as-you-go). The oniy debt limit applies to q �-�� Ability-to-Pay Indicator Tax Bill for Debt Service Tax Levies -$70,000 Home in Saint Paul Taz Impad on S70,000 Hort�e Ramsey County (City Portion) City of Saint Paui SaiM Paul SGwds SaiM Paul PoA AutFwrity Toql Tau Btll Ramsey Camty (City Portion) city of Sainc Paul Saird Paul Sc7�ools SaiM Paul Port AWhority TWaI Tax Bill 7959 1990 1991 $20 $73 $18 86 41 42 42 27 21 11 7 7 $758 $87 $88 1995 1996 1997 $79 $21 $20 60 57 56 43 6] 66 3 3 3 $126 $743 $145 1992 � �994 S27 $Z1 $20 47 49 53 7 tt 30 10 5 4 $85 $85 $708 1998 'i999 2000 $24 $26 $28 56 56 54 G9 74 78 3 3 3 $151 $156 $163 Nofe: For taxes payaWe in 1989, gross tax capacily' was used to detemeine propeRy taxes. Begnning with taxes payable in 1990, net tax capacity replaeed gross tax eapadty as fhe bass on which taxes aie kvied. Net fax capacity dHers from gross tax capaci(y primardy by havinglower va/ues forhomesteaded resdential property am! certain agriculfurdl property. -13- -34- �z-�C ABILITY-TO-PAY ONDICATOR Tax Bill for Debt Service Tax Levies Definition and Purpose: A major portion of the debt covered in this report will be repaid by property taxes. An indicator of the burden of this debt is how the amount of the tax bill for this debt service changes over time for representative residential properties. This indicator estimates this change in property tax bilis for debt service for two representative properties: $70,000 and $100,000 residential homestead properties. The tax bill is based on the estimates of increases in the property tax bases previously discussed. ��-�� all local governmental units in Minnesota. This limit is 2% of the market value of all 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 wifh industry benchmarks. In addition, the County participates with the City of Saint Paul, Saint Paul Schools and Saint Paui Port Authority to review overall general obligation debt on the Saint Paul tax base through the work of the Joint Debt Subcommittee of the Joint Property Tax Advisory Committee. CAPITAL INVESTMENT OVERVIEW Target Range: No target ranges were established with the expectation that individual ju�sdictions would address their own situations. Trend: For the $70,000 property, the tax bill ranged from a high of $158 in 1989 to a Iow of $85 in 1992 and 1993. For the period of 1996 through 2000, the tax bill is estimated to increase from $143 in 1996 to $163 in 2000. Summary: For the $100,000 property, the high and low points for the period 1989 through 1995 are the same as for the $70,000 property. For the period 1996 through 2000, the tax bill is estimated to increase from $261 to $298. For the period 1996 through 2000, representative tax bills are estimated to increase by approximately 14%. Each participating jurisdiction recognizes its responsibility to respond to the demands of infrastructure replacement and enhancement. On the following pages, the overall historical and future levels of capital investments are profiled. Future capital spending is an outgrowth in part of the participants' initiatives previously discussed. The capital investment levels are financed from a variety of sources, of which debt plays a part. Table 1 shows the amount of historical and future combined and individual capital investment by year for the City, the School District, and the County. The Port Authority is excluded because it serves as an industrial development organization for the City. Over the time period 1989 through 2000, combined capital investment reached a high point in 1989 at approximately $182 million. 1996 represents the next highest combined point, at approximately $152 million. The participants estimate future combined capital investments will decrease through 1999, then increase slightly in 2000. -33- -14- ��' Table I Total Annual Capital Investment .. . �, ... • � .. � ... :...� �.. . ... ... .� �.� ..� � �.� r�a �,.� �� r� �o� � �� a� � �� r�� . �i Ability-to-Pay Indicator Debt Service Levy Per Household - Saint Paul Port Authority sz�o s�so s�so s�ao S�2o $700 $80 $60 $40 $ZO � 7989 t990 1991 1992 1993 1994 1995 1996 1997 1996 7999 2000 Payable Year B Ramsey County ■ City of Sainf Paui Ci Saint Paul ScFiools TotaiCaprtalSpending: 1989 1990 7991 �992 1993 7994 RamseyCounty $96,589,875 $9.867.Q74 514.4Q5,769 $7.759.326 572,058,407 $9.Q53.188 Ci[yofSairrtPaul 74.282,SOD G5.088,803 52,538,950 65.437,579 65,197,452 61.858.000 SairdPaulSehods 11.317.W0 26.524.000 35.539.000 32.043.000 29.791.000 37.556.00D Totai 5182,189,375 $101,473,877 $102.483,719 $105,239.905 5107,046.853 $108.467.188 Ramsey County City of Saint Paul Sairrt Paul Sohods Total 1995 1996 1997 1998 1999 2000 $17,825,757 $21,672,865 $30.930,803 $48,7U6.333 512.823.303 530,038.803 64.106�W0 69.2W.OW 40.000�000 37�200.000 37.200.00D 37.700.00D 45.559.WD 61.446.OW 562S5.W0 29.921.000 71.702.000 23.038.000 $'127.490.757 $152,324,865 $727,2'15.803 $115.827�333 $72�725�303 $90.776�803 Note: Mnual capital investrneM figures shown above for Ramsey CouMy represenE Counfy-wide capifal spending, not just the portion at6i6utable to the Cify of Saint Paul. -15- . . Port DeM Serviee Tax Levies N�enber of City Households DIS Levy Per Household Port Debt Serviee Tu Levies N�unber of City Households D/S Levy Per Household 1989 $1.639.504 111.28:i $15 '1995 $842,076 110,355 $8 1990 $1,823,859 N Q249 $17 1996 $823,375 110,355 $7 '1991 $'1,810.634 110,424 $16 t997 $824,689 11Q355 $7 1992 S2,E�62,550 710,476 $23 '1998 $735.432 710.355 $7 1993 $1,232.550 f 70.430 $11 7999 $736.756 t 10.355 S7 7994 $1.023.261 110.347 $9 � $734,�9 110.355 b7 Note: The amorrnts shown above represerK tlebt semte /evres per /auseho/d and are not a repiesentabon W fhe taz bIf! fw debtservice (which is based on properfy va/ues rrthertl,an ineome). -32- 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Fswl Year �� -�� THE ROLE OF DEBT Ability-to-Pay Indicator Debt Service Levy Per Household - Ramsey County Capital investment can be funded by debt and non-debt sources. The mix of these sources are significant in the current and long-term financial health of individual jurisdictions and the burden placed on local taYpayers. Debt represents a long-term commitment of resources to repay obligations. If debt leveis become too high, leading to increasing annual draws on the community's resources for debt service, local governments wili be faced wifh 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 overaN financial health of the community. Also, the decision to proceed with a capital investment can be assisted if each dollar of investment does not result in a dollar of debt. Each jurisdiction's ability to finance capital invesiment is controtled by iis own legislative authority, ability to raise revenues from various sources, and individual policy options. Certain types of local governments have more latitude to raise revenues and incur various types of debt. Therefore, each participanYs situation must be shown individually, and while comparisons among participants may occur, it must be kept in mind that different jurisdictions have varying levels of loCal control. Tables II, III and IV show annuai general obtigation debt issued as a percent of an�ual capitat investment for the City, School District and County, respectively. In certain cases, a participant may show a level higher than 100% because in one debt issuance, a muitipie-year project is financed. Total Co. DeM Service Levy PerceM Applied to City Share City Share of Co. Debt Levy Number of City Households DfS Levy Per Household 1989 $6,048,031 49.6% $2,999.823 111.283 $27 �s90 $6.W4.9&5 51.4% $3.343�562 »o,zas � 1991 '1992 '1993 $9.563,751 $10,624,554 $10.453,192 51.4% 51.3% 512% $4.915.766 $5,450,396 $5.352,034 170,424 170,476 710,430 $45 $49 $48 �ssa $9�934.215 50.4% $5,006.844 »o,sa� S4S 1995 19 6 1997 't998 7999 2000 ToWICo.DebtServiceLevy $9.238.680 $10.625,352 $10,731,100 $13.021,738 $74.503,975 $16.200.931 Pereent Appiied to City Share 49.8% 49.1 % 48.3% 47.6% 46.9% 462% City Share of Co. Debt Levy $4.600.863 55277.048 $5,183.121 $6,198.062 $6,802.364 $7,484.830 NumberofCityHousehoids 110,355 110,355 1�0,355 N0,355 710,355 110,355 D/S Levy Per Household $42 $4T $47 $56 $62 $68 Nofe: The amwi� shown above rzpreserK debt service fevies perhousehold and are rmf a reprasentaSon of fhe taacbil/ for debf serviee (whlch Is based on property values rather than i�rcome). Each participanYs overall level of debt and their contributions to the overlapping debt placed on other participants is also valuable information. Table V shows the dollar amount of total general obligation debt by participant and combined over the period 1989 through 2000. The combined total rises from a low in 1989 of $216 million to an estimated high of $407 million in 2000. Individually, each participant's experience follows the combined situation, with the exception of the City which shows a decrease from a high point in 1994 of approximately $150 million to a low of approximately $132 miliion in 2000. Table VI shows the changes in the annual contributions to the total debt burden, or overlapping debt, as a percent of the total debt of the combined entities. -31- -16- ��-��1 Tabie H Annual G.O. Debt Issued to Annual Capital Investment - City of Saint Paui t60.o°k 140.0% 120.0% 1 D0.0% 80.0% 60.0% 40.0% 20.0% 0.0% CRV of SaiM Paul Debtlssued ToWI Capital Spending Debt to Capital Spending Debtlssued Total CapiWl Spending Debt to Capital Spending 1989 199U 1991 t992 1993 1994 $24.250.000 $14,850.000 5'I3.140.OW $14.485�,000 $33.910.000 $16.650,000 $74.282.500 $65.088.803 $52,538.950 $65.437.579 $65.197.452 $61.858,OW 32.6% 22.8% 25.0% 22.1 % 52.0% 26.9% 1995 1996 7997 1998 1999 2000 $15,610.000 $19.720.000 $"19.600,000 $16,200.000 $16,200,000 $16.700,000 �G4,106.000 $69,206.000 $40.000.000 $37.200.000 $37,200,000 537.700,000 24.4% 28.5°h 49.0% 43.5°k 43.5% 44.3% Note: The Cit}/s fiscal year coincides wrth the ca/endar year, endng December 31 of each year fisfed above. . , Ability-to-Pay Indicator Debt Service Levy Per Household - Saint Paul Schools q�-�1 1989 1990 7991 �992 1993 7994 SID Debt 5ervice Tau Levies $6,322,838 $7,t02,000 $5,575,000 57,977,000 $2,759.000 $7.511,d8 N�unberofCityHousehofds 111,283 tt0,249 110,424 170,476 t10,430 110,347 D!5 Levy Per Household $57 $64 $5p $18 $25 $68 1995 1996 1997 1998 1999 2006 S!D Debt Service Ta7c Levies $10.426.000 $15.141.OW $16,874,000 $17.8� 9,539 $19,305,978 $20,698,892 Nianber of City Househotds 110,355 110,355 110,355 110,355 110,355 110,355 DIS Levy Per Household $94 $737 $753 $161 $775 $188 Note: The amour� shown above represerK deMseiviee levies perhousehold and are nof a represenfation of the far 6if! fw debtservice (fvhlch ls 6ased on propeKy vatues raU�er than irrcomeJ. -17- -30- '1989 '1990 7991 1992 1993 1994 '1995 1996 1997 1998 7999 2000 Fiscal Year � V J � l Ability-to-Pay Indicator Debt Service Levy Per Household - City of Saint Paui '1988 1990 1991 1992 7993 1994 CityDebtServlceTaxLevies $13,062,792 $10,989,360 $17,496,813 $12,489,955 $12,711,327 $13,075,174 Number of City Households 111,283 110,249 110,424 110,476 110,430 110,347 WS Levy PerHousehold $118 $100 $104 $773 $115 $119 1995 996 1997 1998 1999 2000 City Debt Service Tax Levies $74,578,338 $14,212,875 $14,374.387 $14.575.685 $14,630.102 $14.367.G91 Number of City Households 110,355 110,355 110,355 170,355 110,355 110,355 WS Levy Per HousehoM $132 $129 $130 $132 $133 $130 Nofe: The amour� stwwn above represenf debf servicelevies per housebold and are nof a representaSon ofUie faz bilf for de6tservice (whieh is based on property va/ues rather than ineome). q�-' Table III Annual G.O. Debt lssued to Annual Capitai Investment - Saint Paul Schools . ,so.o^� iao.o% �zo.o^.s �w.o°6 so.o% so.o% 40.0% 20.0% o.o% � SaiM Paul Schools Debtlssued Total Capital Spending DeM W Capital Spending Debtlssued Total Capital Spending DeM to Capitai Spending 7989 1990 1991 1992 1993 1994 $0 $41,443.543 $9.00�,000 $12.700.000 $13.000�000 $40,OW,OW $11,317.W0 $26.524,W0 $35,539.OW $32,043.OW $29.791,000 $37,556,000 0.0% 1562 25.3% 39.6% 43.6% 106.5% 1995 1996 1997 1998 1999 2000 $50,OOO.D00 $20,OW.000 $11,000.000 $11,000.000 $17,000.000 $11,000.000 $45,559.W0 $61,446,W0 $56,285,000 $29.921.000 $72.702.000 $23,038,W0 109.7% 32.5% 19.5% 36.8% 48.5% 47.7% Note: Annual capital investrnent figu�es shown above rep�esent the capital spending in each fiscai yearfir the Dis6ict, The DistricPs fiscal year ends June 30 of each yearlisfed a6ove. The amount ofdebt shown for each year is a/so issued wifhin !he same fisea/ yeat as the capita! spending amount Proceeds of the debt are spent down over severa/ years. _29_ _�g- 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Fiscal Year ��-�� Table IV Annual G.O. Debt issued to Annual Capital Investment - Ramsey County 160.0% 140.0%a 120.0% 100.0% 80.0% 60.096 40.0% 20.0% 0.0°.6 RamsevCouMv Total Debt Issued Total Capital Spending DeM to Capital Spending 1989 $80.500.000 $96,589,875 83.3% 1990 199'1 $7,580.000 $3.700.000 $9,861.074 $14.405.769 76.9°k 257% 1992 1993 56.840.000 54.700.000 s�.�ss.azs $,zoss.ao, 88296 39.0°.6 1994 $6,470,000 $9.053,188 71.5°h 1995 1996 1997 1998 1999 2000 Totai Debt Issued $11.045.000 $17,570.000 $9.275.000 $14,085.000 $3.490.000 $14,535,000 Total Capital Spendirg $17.825.757 $21.672.865 $30,930.803 $48,�(76.333 $12.823,303 $30.038.803 Debt to Capital Spending 62.0% 81.1 % 30.0% 28.9% 272% 48.4°h Note: Mnuat capita! investrnent figu,es shown above torRamsey CouMy represent County-wide capital spendng, not just the portion athibutable Eo tlre City of Saint Paul Debt issued 2presents the amount issued that is payable from a generai County-wide tax lery and excfudes debt issued which is paya6le from a fax levy spread on only suburban communities. The County's fisca! year coincides witl� the calendar year, ending December 31 of each year lisfed above. ��-�1 Ability-to-Pay Indicator Total Debt Service Levies Per Household saoo $350 a $300 $250 $200 $150 $100 $50 $0 � . D/S Levy Per Householtl 1989 , 1990 1991 1992 1993 1994 Ramsey CouMy (City Partion) $27 $30 $45 $49 $48 $45 City of SaiM Paul 118 100 104 113 115 119 Saird Paul Schools 57 64 50 78 25 68 SaiM Paul Port Authority 15 17 16 23 11 9 Total $216 $211 $216 $203 $200 $241 1995 1996 1997 1998 7999 2000 � Ramsey CouMy (City Portion) $42 $47 $47 S56 $62 $68 Cily of SaiM PaW 132 129 130 732 133 130 SaiM Paul Schools 94 137 153 161 775 188 Saird Paul Port Authority 8 ? Z ? � � Total $276 $321 $338 $356 $376 $392 1989 1990 1997 1992 1993 1994 Number of City Households 111,283 110,2d9 110,424 110,476 110,430 'I'10,347 1995 1996 1997 1998 1999 2000 Number of City Households 110,355 110,355 110,355 110,355 110,355 110,355 Note: The amourtu shown above represent debi service /evies per household and are not a represeniaSon of fhe tar bilf for debt service (which is based on property values rather than income). -28- -19- 1989 1990 1991 7992 1993 1994 1995 1996 1997 1998 1999 2000 Payabte Year � Ramsey County (Ciry Portion) ■ City of SaiM Paul ❑ Saint Paul Schools ■ SaiM Paui Port Authority 19&9 1990 1991 1992 1993 1994 1995 1996 1997 1996 1999 Z000 Fiscal Year ��Z-Z ABILITY-TO-PAY INDICATOR Debt Service Levy Per Household Definition and Purpose: The property tax can be viewed as the price government charges for its services. These services are broadly dividecf into operations (such as public safety, street maintenance); and infrastructure investment (such as pay-as-you go capital and debt service). This indicator measures the annual debt service property tax levy per household (annual price of debt). The purpose is to show how this price to the citizens for debt service changes over time with annual debt levy variations. No industry benchmarks exist in this area, and this information should be used only as a relative indicator of increase or decrease. Each jurisdiction is listed separately. This indicator is not a representation of the tax bill for debt service (which is based on property values rather than income}. Sample tax bills for debt service are provided on pages 34 and 36. Target Range: $350 -$400 fior Debt Service Levy per Household. No iarget ranges were established for Debt Service Levy perHousehold, wfth the expectation that individual jurisdictions would address their own situations. Trend: Summary: The City shows an increase from 1990 to 1995, then a leveling through 2000. The School shows a reduction from 1990 to 1992, fhen an increase through 2000 to $188. The County shows no pattem until 1995, after which it increases through 2000. The PoR stays at a flat level after 1995. The overall trend is upward. The number of households has been frozen at the 1995 level for 1996 and thereafter. a'i-�� Tabie V Total G.O. Debt by Issuer $zoo,000,000 $�so,000,000 $iso,000,000 $140,000,000 si2o,000,000 $�oo,000,000 $ao,000,000 $60,Q00,000 $40,000,000 $2o,00a,000 $o Calendar Year � Ramsey County ■ City of Saint Paul 0 Saint Paul Schools � Saint Paul Port Authority Total G.O. Debt: Ramsey County City of Saint Paul Saint Paul Schoois Saint Paul Port Authority Total Existing & New Ramsey County City of Saint Paul Saint Paul Schools Saint Paui Port Authority Total Existing & New 1989 $45,408,800 141,679,000 24,440,000 4,305.000 $2'15,832,800 1995 $51,923,970 149,465,000 157,603,209 17.490.000 $376,482,179 1990 $47.966.480 150,0'11,000 58,263,743 3840.000 $260,081,723 '1996 $58,883,175 147,320,000 175,048,733 �7.100.D00 $398,351,908 1991 $47,447,344 �46,387,000 59,783,743 3,375:000 $256,993,083 '1997 $59,392,095 146,�50,000 180,78'1,931 16.800.000 $403,'124, 026 '1992 $48,745.260 142,930,000 65,63�,959 Zsoo.000 $260,207,219 1998 $6'1,822.880 �ao,aso,000 184,645,832 16.475.000 $403,393,712 '1993 $48,642,560 149,625,000 75,152,938 2.390.000 $275,810,498 1999 557,944,950 135,695,000 '187,773,450 22.165.000 $403,578,400 1994 $49,384,440 149, 975, 000 11'1,462,306 17.870.6Q0 $328,691,746 2000 $58,244,340 '131,710,000 190,366,553 27.250.000 $407,570,893 -27 -20- � O N th � � (O I�- N � O eD W � � � � m � Q� � m O W W � � � W W � � � � N � � / � I Table VI Overtapping G.O. Debt as Percent to Total �o.o% 6D.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0°h 196 Overlapping Debt as Percent of Total: �989 Ramsey County 2'1.0°k City of Saint Paul B5.6°k Saint Paul Schools 'I1.3°k Saint Paul Port Ruthority 2.0% Total 100.0°k Ramsey County City of Saint Paul Saint Paul Schools Saint Paul Port Authority Total '1990 18.4°h 57.7% 22.4% 1.5% 100.0% 1995 '1996 13.8°k '14.8°� 39.7°l0 37.0°k 41.9°� 43.9% 4.6°!0 4.3% 100.0% 100.0% 1991 18.5% 57.0°k 23.3% 1.3% 100.0% 1997 14.7°k 36.3% 44.8% 4.2% 100.0% '1992 18.7% 54.9% 25.2% 1.t% �00.0% 1998 15.3°k 34.8% 45.8% 4.t% 100.0°k 1993 � 7_6% 54.2% 27.2% 0.9% 100.0% 1999 14.4% 33.6°k 46.5% 5.5% �00.0% 1994 15.0% 45.6°k 33.9% 5.4% '100.0°k 2000 14.3°k 32.3% 46.7°k 6.7% '100.0% r 0 Credit Rating Indicator Total G.O. Debt to Indicated Market Value s.00^� a.so^6 4.00% 3.50%'0 3.00°.6 2.50% 2.00% 1.50% 7.00°b 0.50:6 0.00% G.O. Debt to I.M.V. Ramsey County City of SaiM Paui Saint Paul Schools Saint Paut Port Authority Total Debt to Mkt Value Moody's Medians 7989 0.58°b 1.81% 0.31 % 0.06°h 2.76% 3.8% 7995 o.sa% 1.84% 1.96% 0.Y2% 4.63% 3.8% 7990 0.58°b 7.83% 0.71 % 0.05% 3.17% 3.0°k 7996 o.�i% 1.78°h 2.71:6 0.27% 4.81% 4.'I% '1997 0 57°5 1.75°b 0.71°,G 0.04°b 3,06% 4.0°,G 1997 o.� '1.73% 2.73°b 0.20% 476% WIA '1992 0.61 % 1.78% 0.82% 0.04% 325°� 3.7% 7998 o.n�.c 1.64% 2.16% 0.'19% 4.72% WA 1993 0.6'I % 1.89°h 0.95% 0.03% 3.48% 3.1% 7999 o.sr� '1.57°b 2T7% 0.26% 4.67% WA ��` �� 1994 0.63°b 1.91°.6 1.42°.6 023% 4.19% 3.5% 2000 o.s�� 1.51% 2.18% 0_3'I % 4.67°b WA Ramsey CouMy City of SaiM Paul , SaiM Pauf Schoois sa�rn Pa�� Port nw,only Total Debt ta Mkt Value Moody's Medians • City Ind. Market Value �989 �990 1991 �992 1993 1994 7,808,365.562 8,2'Ib,115.290 8.385.923,323 8,013.445.348 7,9'18,3'13.99'1 7.842.707.970 1995 1996 1997 7998 '1999 2000 8,'134,540,'154 8.288.848,603 8.470.505,642 8.555,2�0,698 8,640.762.805 8.727,170,433 Note�lndicatetl Market Values for 1989 thravgh fA97 are based a� N�e Es6mated Market Yalue farthe Cdy divided by the sa/es 2tio for eaeh year as determined by the State DepaAment of Revenue. lndicated Market Value projections Iw f998 thrargh 2000 incluUe a 1% growC+factor over the previous year. -21 - -26- 9 1990 '1991 1992 1993 'f994 '1995 1996 1997 1998 1999 2000 Catendar Year -a�-Ramsey County �--City of Saint Paul --� Saint Paul Schools �--Saint Paui Port Authority 1989 7990 199'I �992 '1993 1994 1995 199G 7997 �996 '1999 2000 Calef War Year 9 Ramsey CouMy ■City of SaiM Paul � Saint Paul Schools �SaiM Paul PoK Authorily ��- l CREDIT RATING INDICATOR Debt to Indicated Market Value Definition and Purpose: Debt fo indicated market value is a basic credif rating indicator showing the tofal principal amount of debt to the fu(i value of real estate. As the ultimate source of repayment for this debt is the general property tax, with such tax levied against the value of all properties, this indicator depicts the overall debt burden as both debt and the resources for repayment (value) change over time. Low ratios are viewed as positive indicators. Moody's Medians are again listed for market value. (Please see description on Debt Per Capita.) Target Range: 4.50°fo to 5.50°l0 Trend: The combined debt to indicated market value increases from 2.76% in 1989 to 4.81 % in 1996 and then declines to 4.67% in 2000. In 1990 and 1992 through 1996, the indicator exceeds the Moody's Medians. Over the term, the school district represents a greater share of the indicator. Indicated market value, both historicaliy and estimated future, shows very little change. The Appendix to this report (page 45) provides detailed information about indicated market value. Summary: The combined debt to indicated market value indicator increases by 74% between 1989 and 1996 and begins to decline in 1997 through 2000. Moody's Medians for Overall Net Debt to Estimated Full Value'� 19$9 1990 1991 1992 1993 1994 1995 1996 Low 22% Median 3.8 High 7.2 1.7% 1.1 % 2.2% 2.2% 1.3% 3.0 4.0 3.1 3.1 3.5 7.2 7.8 7.3 9.2 9.9 1.8% 2.5% 3.8 4.1 7.3 10.0 ' The ranges ind'rcated above are tor cities with a population of 200,000 fo 299,999. Moodys does not specify certain credit ratings for the ranges. _ �' �t INDICATORS Investment in public infrastructure and the financing by debt results in numerous financial impacts on the participating jurisdictions and their citizens. The focus here is on a limited number of impacts which cover four fundamental financial areas: credit rating, property taxes, capital investment impact on operations, and the citizens' ability-to-pay. For each of these areas, indicators of impact have been determined, analyzed and positions summarized. These �� indicators provide basic proxies of the jurisdictions' individual and combined impacts. Each indicator is profiled as to its definition and purpose, farget range, trend and summary *' position. I The target range within this profile presents a policy position of this Subcommittee as to a positive performance objective. As a target range, the jurisdictions are permitted flexibility to respond to their overall policy objectives. Each indicator is separated into two components: historical, covering the period 1989 through 1996; and future, covering the period '1997 through 2000. , For credit rating indicators, the debt shown, with few exceptions, was developed to be i consistent with that debt included by the national credit rating agencies in computing their debt ratios. Detailed information relating to the types of debt included and exduded for this purpose is provided in the Appendix to this report. i i � ! i -25- -22- �� CREDIT RATING INDICATOR Debt Per Capita Definition and Purpose: Debt per capiYa is a basic credit rating indicator showing the total principal amount of debt to the total population. It depicts the overall debt burden as both debt and population change over time. Low ratios are viewed as positive indicators. The national credit rating agency, Moody's Investors Service, annually pubiishes its own indicators of credit rating burden and position, "Moody's Medians." These are established by population range categories forjurisdictions and are national in character. Moody's Medians are listed through 1996, the last year of publication. Target Range: $1,450 to $1,550 Trend: The combined debt per capita increases from $805 in 1989 to $1,470 in 1996 to $1,503 in 2000. In each year through 1996, they remain below Moody's Medians. Over the term, the school district represents a greater share of the indicator. Summary: Population, both historically and estimated future, remains basically unchanged. The combined per-capita debt indicator increases by 83% between 1989 and 1996, and by only 1% between 1997 and 2000. Moody's Medians for Overall Net Debt Per Capifa* 1989 1990 1991 1992 1993 1994 1995 1996 Low $ 645 $ 601 $ 329 $ 636 $ 664 $ 672 $ 894 $ 776 Median 1,123 1,082 1,276 1,500 1,418 1,477 1,581 1,623 High 2,236 2,315 2,543 2,940 3,069 3,594 2,576 2,949 ` The ranges indicated above are forcities wrth a population of 200,000 to 299,999. Moodys does nof specify certain credit ratings fo� the ranges. Credit Rating Indicator Total G.O. Debt Per Capita s�,soo si.aoo $1,200 s�.000 s800 S600 Saoo S2oo � f � �11-11 G.O. Debt Per Capita Ramsey CWMy City of SaiM Paui Saint Paul Schools Saint Paul Port Authaity Totat Debt Per Capita Moodys Medians 7989 5169 529 9'I 16 5805 51,123 1990 $176 551 214 14 $955 87,082 Ramsey CouMy 1� City of SaiM Paul - Safrrt Pau� Scrwols SaiM Paul Port Authority � Total DeM Per Capita Moodys Medians City Population 1995 1996 $192 $217 551 543 581 646 65 63 51,389 51,469 51,581 $1,623 1989 1990 2(i7.968 272,235 '1995 1996 271.120 271.120 1991 $174 537 219 12 5943 57,276 1992 $179 524 241 11 5954 57,500 1997 1998 $219 $728 539 578 667 681 62 61 51,487 E1,488 WA N!A 1991 1992 272,537 272,692 1997 1998 271.120 271.120 1993 $179 Sb0 276 9 51,013 51,478 1994 $182 552 410 66 51,270 51,477 1999 2000 $214 5215 500 486 ss3 �02 82 101 51,489 51,503 NiA N/A 1993 1994 272,243 271,660 1999 2000 271.120 271.120 Note: PopolaSon figures for 1989 and ?991 dvough 1995 are Mebopolitan Gounci! esfrmates. The 1990 populafron figure is trom fhe US. Census Bu2aa Popula6on projections for 1996 fhrough 2000 a2 frozen at the ?9951eve% -23- _24_ Ol o N ch < In tD r N rn O m rn rn m m m rn rn rn rn m W 6I W W W � W 61 � W O� N Calendar Year 9 Ramsey County ■ City M Saint Paul ❑ SaiM Paul Sohools � Saint Paul Port Authority � �1-�i Fsom: Joe Reid To: CCOUncil.COUNCIL.annc, Date: 1/24/97 12:29pm Sub3ect: Resolution 97-71 CCouncil.COUNCIL.bobbim, CC... This resolution seeks adoption by the City Council of the updated joint debt plan o£ the City o£ Saint Paul, Ramsey County, School District 625 and the Saint Paul Port Authority. The plan was prepared by the Joint Debt Advisory Committee, the inside cover lists the members of the committee. It has been reviewed and amended by the Joint Property Tax Advisory Committee (JPTAC) and has been £orwarded by the JPTAC £ox approval by each jurisdiction. As the lead jurisdiction, the City is the first to be asked to accept the plan as a joint wosking document for debt management. If you have any questions, please contact me or Bobbi Megard, the elected official who represented the City on the Debt Advisory Committee. Joe