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The following table summarizes the City's long-term liabilities: Governmental Activities 2012 2011 Bonds $ 36,345,000 $ 30,505,000 Capital equipment certificates - 170,000 Compensated absences 760,944 798,892 Other Post -Employment Benefits (OPEB) 279,642 214,747 Total $ 37,385,586 $ 31,688,639 During the current fiscal year, The City saw an increase of nearly $5.7 million in bonds and certificates. The City issued two new bond series during the current fiscal year. The series 2012A bonds were issued as a general obligation improvement bond with the intent to refund series 2005A public facility lease bonds. The series 2012B bonds were issued as a taxable general obligation tax increment bond. The proceeds from this issuance will pay for certain qualified costs related to the construction of The Residence at The COR Apartments located within tax increment district 14. The compensated absence liability decreased $37,948 due to significant staffing reductions as a result of voluntary retirement and/or termination. Other Post - Employment Benefits (OPEB) increased $64,895 due to an increase in the annual required contribution as actuarially determined with the parameters of GASB Statement Nos. 43 and 45. State statutes limit the amount of general obligation debt a governmental entity may issue to three percent of its total assessed valuation. The current debt limitation for the City is $57,200,676. The City has sufficient funds on hand to make all required bond payments, and anticipates an ongoing stream of revenue to make future bond payments. Additional details of the long-term debt activity for the year can be found in Note 5 of the notes to basic financial statements. Economic Factors and Next Year's Budgets and Rates • The unemployment rate for the City of Ramsey is currently 5.2%, which is a decrease from a rate of 6.7% a year ago. The state of Minnesota shows an average unemployment rate of 6.4%, whereas, nationally the unemployment rate is 8.4%. • The number of foreclosures in the City of Ramsey increased from 109 units in 2011 to 146 in 2012. In comparison, the State of Minnesota saw a decrease in foreclosures from 21,298 in 2011 to 17,895 in 2012. • Inflationary trends in the region compare favorably to national indices. • The city is expecting steady residential and commercial growth within the next three years, spurred by the completion of the Ramsey Station for the Minnesota Northstar commuter rail. All of these factors were considered in preparing the City of Ramsey's budget for the 2013 fiscal year. The storm water utility rates were increased for the 2013 budget year. The storm water utilities will increase an average of 5%. The increased rates are to not only offset current maintenance costs and depreciation, but to help finance 2013 storm utility projects. Additionally, there was a $1 increase in the special assessment fee for unpaid items assessed. This increase will offset inflationary administration costs. REQUESTS FOR INFORMATION Questions concerning any of the information provided in this report or requests for additional information should be addressed by writing to the City of Ramsey, 7550 Sunwood Drive Northwest, Ramsey, MN 55303 or by calling (763) 427-1410. 35