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Long -Term Liabilities — The Debt Service Funds account for the accumulation
<br />the City's general obligation bonds. The revenue sources for these funds include
<br />assessments. At year-end, major debt service fund balance was $1,731,922 and
<br />balance was $689,105 for a total of $2,421,027 in fund balance restricted for debt
<br />The following table summarizes the City's long-term liabilities:
<br />Governmental Activities
<br />Bonds
<br />Capital equipment certificates
<br />Compensated absences payable
<br />Net pension liability
<br />Other postemploymentbenefits (OPEB)
<br />Subtotal
<br />Business -type Activities
<br />Net pension liability
<br />Total
<br />2017
<br />$ 26,075,000
<br />1,020,000
<br />847,202
<br />5,892,660
<br />565,491
<br />34,400,353
<br />of resources to finance all of
<br />annual tax levies and special
<br />non -major debt service fund
<br />service.
<br />2016
<br />$ 27,120,000
<br />1,165,000
<br />774,743
<br />11,832,779
<br />515,011
<br />41,407,533
<br />581,651 639,331
<br />$ 34,982,004
<br />$ 42,046,864
<br />During the current fiscal year, the City saw a decrease of $1,190,000 in bonds and certificates. The City had one
<br />debt issuance during the current year. The Series 2017A, were $895,000 General Obligation Street
<br />Reconstruction Bonds used to finance the road reconstruction of Alpine Drive and Sunwood Drive. Due to an
<br />increase in personnel in 2017 and employees retaining larger balances at year end, the compensated absence
<br />liability increased by $72,459. Net pension liability saw a significant decrease of $5,997,799 to reflect the
<br />change in the City's proportionate share of the state-wide PERA pension plan obligation. Other Post -
<br />Employment Benefits (OPEB) increased $50,480 due to the annual OPEB costs exceeding contributions as
<br />actuarially determined with the parameters of GASB Statement Nos. 43 and 45.
<br />State statutes limit the amount of general obligation debt a governmental entity may issue to three percent of its
<br />total assessed valuation. The current legal debt margin for the City is $48,386,083.
<br />The City has sufficient funds on hand to make all required bond payments, and anticipates an ongoing stream of
<br />revenue to make future bond payments.
<br />Additional details of the long-term debt activity for the year can be found in Note 5 of the notes to basic financial
<br />statements.
<br />Economic Factors and Next Year's Budgets and Rates
<br />• The unemployment rate for the City of Ramsey is currently 3.0%, which is a decrease from a rate of
<br />3.7% a year ago. The state of Minnesota shows an average unemployment rate of 3.4%, whereas,
<br />nationally the unemployment rate is 3.9%.
<br />• The number of foreclosures in the City of Ramsey increased from 21 units in 2016 to 29 in 2017. In
<br />comparison, the State of Minnesota saw a decrease in foreclosures from 5,306 in 2016 to 4,718 in 2017.
<br />• Inflationary trends in the region compare favorably to national indices.
<br />• The city is expecting steady residential and commercial growth within the next three years, spurred by
<br />access to the Ramsey Station for the Minnesota Northstar commuter rail, the construction of the
<br />Armstrong interchange, a new industrial business park and continued development within The COR.
<br />All of these factors were considered in preparing the City of Ramsey's budget for the 2018 fiscal year.
<br />The water and storm water utility rates were increased for the 2018 budget year. The water utility, which has a
<br />tiered rate structure, will increase by an average of 2% for all customers. Storm water utilities will increase an
<br />average of 8%. The increased rates are to not only offset current maintenance costs and depreciation, but to help
<br />finance future utility improvements that are documented in the City's ten-year Capital Improvement Plan.
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