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NOTE 5 — LONG-TERM DEBT (CONTINUED) B. Descriptions of Long -Term Debt • Tax Increment Bonds — These bonds are issued for redevelopment and economic development projects. The additional tax revenue resulting from increased assessed valuation of the properties is the major source of revenue used to retire the related debt. • Capital Improvement Refunding Bonds Series 2004A — These bonds were issued to finance Fire Station #1 and will be repaid via ad valorem levies. • General Obligation Improvement Bonds —These bonds were issued on the basis of a joint powers agreement between Anoka County and the City for regional road improvements. Anoka County makes the annual debt service payment to the City for the 2005B Series bonds. The 2009A Series bonds will be repaid with annual allotments of Municipal State Aid and interest will be subsidized 35% through the Build America bond program. The Series 2011A bonds will be repaid with annual allotments of Municipal State Aid and an annual assessment per the assessment agreement between the city of Ramsey and Hageman Holdings for the improvements that were necessary for the future Legacy School. The Series 2011B were Improvement Crossover Refunding bonds that were issued to refund the 2005B Series bonds that will be called on December 15, 2014. The proceeds of this issue were used to call in advance the remaining principal of the 2005B GO Bonds and the City will assume the principal and interest payments on the 2011 issue. This refunding reduced the City's total future debt payments by $ 186,544 and resulted in a present value savings of $153,959. The Series 2012A bonds were issued to refund Public Facility Lease Revenue Bonds Series 2005A, dated June 1, 2005, issued by the Economic Development Authority of the city of Ramsey. Concurrent with this issuance, the ground lease entered into between the Economic Development Authority and the City was teiniinated with the city acquiring the Municipal Center Facility (financed from proceeds of the Series 2005A Lease Revenue Bonds). This refunding resulted in a present value savings of $156,929. • Compensated Absences — The liability represents vested benefits earned by Governmental Fund employees through the end of the year which will be paid or used in future periods. The General Fund is the primary fund used to liquidate this liability. • Other Post -Employment Benefits (OPEB) Liability —The liability represents non -pension benefits provided after the teiniination of employment. Governmental entities have traditionally accounted for OPEB on a pay-as-you-go basis. OPEB liability is accrued as service is provided by employees. The General Fund is the primary fund used to liquidate this liability. 77