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NOTE 5 — LONG-TERM DEBT (CONTINUED)
<br />B. Descriptions of Long -Term Debt
<br />• Tax Increment Bonds -- These bonds are issued for redevelopment and economic development
<br />projects. The additional tax revenue resulting from increased assessed valuation of the properties
<br />is the major source of revenue used to retire the related debt. The Tax Increment Bonds, Series
<br />1999A will be funded by operating rental income from the Senior Housing Project if sufficient,
<br />with tax increments being pledged as the second source of funding.
<br />• Capital Improvement Refunding Bonds Series 2004A — These bonds were issued to finance
<br />Fire Station #1 and will be repaid via ad valorem levies.
<br />General Obligation Improvement Bonds Series 2005E — On June 1, 2005, the City issued
<br />general obligation improvement bonds totaling $4,335,000. These bonds were issued on the basis
<br />of a joint powers agreement between Anoka County and the City for regional road improvements.
<br />Anoka County makes the annual debt service payment to the City.
<br />• Lease Revenue Bonds Public Facility Lease Revenue Bonds Series 2005A (EDA) — During
<br />June, 2005 the Economic Development Authority (EDA) issued Lease Revenue Bonds totaling
<br />$19,200,000. A ground lease was entered into between the EDA and the City. These bonds were
<br />issued to finance the construction of a municipal center which will include City Hall offices as
<br />well as a Police facility.
<br />• Capital Equipment Certificates — These certificates were issued to finance various capital
<br />equipment purchases and will be repaid via ad valorem levies.
<br />• Compensated Absences -- The liability represents vested benefits earned by Governmental Fund
<br />employees through the end of the year which will be paid or used in future periods. The General
<br />Fund is the primary fund used to liquidate this liability.
<br />C. Changes in Long -Term Debt
<br />Balance —
<br />Beginning New Debt Balance — Due Within
<br />of Year Issues Debt Retired End of Year One Year
<br />Tax Increment Bonds $ 6,460,000 $ 1,035,000 $ 1,325,000 $ 6,170,000 $ 1,070,000
<br />Lease Revenue Bonds 19,200,000 — 19,200,040
<br />Capital Improvement
<br />Refunding Bonds 1,385,000 — 100,000 1,285,000 100,000
<br />G.O. Improvement Bonds 4,335,000 — 4,335,000 160,000
<br />Capital Equipment Certificates 1,617,000 355,000 1,262,000 365,000
<br />Compensated absences 463,608 457,287 393 328 527,567 342,918
<br />$ 33,460,608 $ 1,492,287 _ $ 2,173 328 $ 32779,567 $ 2,037,918
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