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<br />NOTE 5 - LONG-TERM DEBT (CONTINUED)
<br />
<br />B. Descriptions of Long-Term Debt
<br />
<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.
<br />
<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 />
<br />. General Obligation Improvement Bonds -These bonds were issued on the basis of a joint
<br />powers agreement between Anoka County and the City for regional road improvements. Anoka
<br />County makes the annual debt service payment to the City for the 2005B Series bonds. The
<br />2009A Series bonds will be repaid with annual allotments of Municipal State Aid and interest
<br />will be subsidized 35% through the Build America bond program.
<br />
<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 to finance the
<br />ongoing debt service obligation. These bonds were issued to finance the municipal center which
<br />includes City Hall offices as well as a Police facility.
<br />
<br />. Capital Equipment Certificates - These certificates were issued to finance various capital
<br />equipment purchases and will be repaid via ad valorem levies.
<br />
<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 />
<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 $ 3,945,000 $ $ 2,030,000 $ 1,915,000 $ 740,000
<br />Lease Revenue Bonds 19,200,000 700,000 18,500,000 710,000
<br />Capital Improvement
<br /> Refunding Bonds 1,080,000 105,000 975,000 110,000
<br />0.0, Improvement Bonds 4,010,000 1,340,000 170,000 5,180,000 315,000
<br />Capital Equipment Certificates 1,120,000 425,000 695,000 360,000
<br />Compensated absences 639,462 533,658 446,513 726,607 472,295
<br /> $ 29,994,462 $ 1,873,658 $ 3,876,513 $ 27,991,607 $ 2,707,295
<br />
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