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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.
<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 —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 />• 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 />$19,200,000. A ground lease was entered into between the EDA and the City to finance the
<br />ongoing debt service obligation. These bonds were issued to finance the municipal center which
<br />includes City Hall offices as well as a Police facility.
<br />• Capital Equipment Certificates — These certificates were issued to finance various capital
<br />equipment purchases and will be repaid via ad valorem levies.
<br />• Compensated Absences — The liability represents vested benefits earned by Governmental Fund
<br />employees through the end of the year which will be paid or used in future periods. The General
<br />Fund is the primary fund used to liquidate this liability.
<br />• Other Post - Employment Benefits (OPEB) Liability — The City implemented Governmental
<br />Accounting Standards Board (GASB) Statement No. 45, "Accounting and Financial Reporting by
<br />Employers for Post - Employment Benefits Other Than Pensions," during the year ended
<br />December 31, 2009. OPEB refers to non - pension benefits provided after the tennination of
<br />employment. Governmental entities have traditionally accounted for OPEB on a pay -as- you -go
<br />basis. The guidance in this statement rests on the assumption that OPEB should be accrued as
<br />service is provided by employees. The General Fund is the primary fund used to liquidate this
<br />liability.
<br />C. Changes in Long -Term Debt
<br />Beginning
<br />of Year Additions Deletions
<br />Tax Increment Bonds
<br />Lease Revenue Bonds
<br />Capital Improvement
<br />$ 1,915,000 $
<br />18,500,000
<br />Refunding Bonds 975,000
<br />GO. Improvement Bonds 5,180,000
<br />Capital Equipment Certificates 695,000
<br />Compensated absences 726,607
<br />OPEB 70,231
<br />$ 28,061,838
<br />- 67 -
<br />$ 740,000 $ 1,175,000
<br />710,000 17,790,000
<br />110,000 865,000
<br />315,000 4,865,000
<br />360,000 335,000
<br />452,612 437,008 742,211
<br />87,580 15,994 141,817
<br />$ 540,192 $ 2,688,002
<br />Balance — Due Within
<br />End of Year One Year
<br />$ 475,000
<br />750,000
<br />115,000
<br />305,000
<br />165,000
<br />482,437
<br />$ 25,914,028 $ 2,292,437
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