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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. 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 />
<br />Tax Increment Refunding Bonds Series 2003B - In July 2003, the City issued refunding bonds
<br />totaling $1,285,000. The proceeds of this issue were placed in a restricted account from which
<br />future debt service payments will be made on the City's Tax Increment Bonds Series 1995A on
<br />February 1, 2005, the call date of the refunded issue. Until the call date, the City will continue to
<br />make all debt service payments on the 1995 issue. On February 1, 2005, the restricted account
<br />will be used to call the remaining principal of the 1995 issue, and the City will assume the
<br />principal and interest payments on the 2003 issue. This "crossover refunding" reduced the City's
<br />total future debt service payments by $69,884 and resulted in a present value savings of $63,715.
<br />
<br />Capital Improvement Refunding Bonds Series 2004A - In November 2004, the City issued
<br />refunding bonds totaling $1,480,000. The proceeds of this issue were used to call in advance the
<br />remaining principal of the 1999A Lease Revenue Bonds and the City will assume the principal
<br />and interest payments on the 2004 issue. This refunding reduced the City's total future debt
<br />payments by $150,523 and resulted in a present value savings of $98,810.
<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 />
<br />Balance -
<br />Beginning New Debt Balance - Due Within
<br />of Year Issues Debt Retired End of Year One Year
<br />
<br />Tax Increment Bonds $ 10,235,000 $ - $ 1,215,000 $ 9,020,000 $ 2,480,000
<br />Lease Revenue Bonds 1,510,000 - 1,510,000 - -
<br />Capital Improvement
<br />Refunding Bonds - 1,480,000 - 1,480,000 95,000
<br />Capital Equipment Certificates 983,000 345,000 182,000 1,146,000 274,000
<br />Compensated absences 351,416 304,814 249,111 407,119 256,585
<br />
<br />$ 13,079,416 $ 2,129,814 $ 3,156,111 $ 12,053,119 $ 3,105,585
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