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BOND READING EXERCISE

1) Question: If you go to the top of page 5, you can see a statement about the limits that have been put on the City of Woodbury. Woodbury can sell bonds only up to a certain limit before it needs to go to referendum.  What is this limit? Does this project exceed this limit?

Response: The next statement, “SECURITY AND FINANCING” talks about the City pledging its “full faith and credit” to pay for these bonds should other revenues not be sufficient. 2) Question: Taxable net tax capacity is calculated by taking the estimated market value of properties in the City and then adjusting it by various weightings called “class rates.” Once these calculations are done, you can see what percentage of the total tax various properties will pay. What percentage of the total taxes will residential property pay in Woodbury?

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3) Question3: The State limits how much debt local governments can issue. What is the maximum amount of debt Woodbury can levy on page 10? Are they close to this limit?

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On page 10, there are two outstanding bond issues called “refunding.” Bonds were sold in the past but then interest rates dropped low enough to make it desirable to sell other bonds with a lower interest rate. The revenues from the second bonds were then used to pay off the first bonds, saving money overall due to the lower interest rate of the second bonds. 4) Question4: Page 11 and 12 list bonds that are supported by other revenue sources. How many other revenue sources does Woodbury use to pay for bonds? Which of these bonds are not backed by the full faith and credit of the City?

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5) Question5: On Page 14, there is a list of overlapping debt for Woodbury, i.e. other jurisdictions that levy taxes within Woodbury that its citizens may also be called on to pay for. How many other entities could levy taxes within Woodbury?

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6) Question6: Page 27 has a summary of the City’s budget. What is the largest source of funds for Woodbury?  The second largest? What is the largest source of expenditures?  The second largest?

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