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NOTE 5 — LONG -TERM DEBT (CONTINUED) <br />B. <br />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 2005B -- 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 />$19,200,000. A ground lease was entered into between the EDA and the City. These bonds were <br />issued to finance the municipal center which includes City Hall offices as well as a Police facility. <br />• Capital Equipment Certificates — These certificates were issued to finance various capital <br />equipment purchases and will be repaid via ad valorem levies. <br />• Compensated Absences — The liability represents vested benefits earned by Governmental Fund <br />employees through the end of the year which will be paid or used in future periods. The General <br />Fund is the primary fund used to liquidate this liability. <br />C. Changes in Long -Term Debt <br />Tax Increment Bonds <br />Lease Revenue Bonds <br />Capital Improvement <br />Refunding Bonds <br />G.O. Improvement Bonds <br />Capital Equipment Certificates <br />Compensated absences <br />Balance — <br />Beginning <br />of Year <br />$ 5,115,000 <br />19,200,000 <br />1,185,000 <br />4,175,000 <br />1,690,000 <br />598,094 <br />$ 31,963,094 <br />New Debt <br />Issues <br />-41- <br />19,200,000 700,000 <br />406,441 <br />Balance — <br />Debt Retired End of Year <br />$ 1,170,000 $ 3,945,000 $ 1,585,000 <br />105,000 1,080,000 <br />165,000 4,010,000 <br />570,000 1,120,000 <br />365,073 639,462 <br />Due Within <br />One Year <br />105,000 <br />170,000 <br />425,000 <br />415,650 <br />406,441 $ 2,375,073 $ 29,994,462 $ 3,400,650 <br />