1994 CAFR - Laserfiche WebLink

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CITY OF RAMSEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 Note 16. FUND CHANGES The following funds were created during the fiscal year ended December 31, 1994: Special Revenue Funds Sod Escrow Fund Tree Escrow Fund Capital Project Funds Annual Project Funds Trust and Agency Funds Trott Brook Cemetery Perpetual Care Trust Fund Note 17. COMMITMENTS AND CONTINGENCIES At the present time, there is no significant litigation pending which is not covered by the City's insurance. Amounts recorded or receivable from federal and state agencies are subject to agency audit and adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of claims which may be disallowed by the grantor agencies cannot be determined at this time although the City expects such amounts, if any, to be immaterial. During the year, the City contracted for several capital projects. At year -end, the total unearned construction contracts totaled approximately $17,259. Note 18. SUBSEQUENT EVENTS In March of 1995, the City issued $2,600,000 General Obligation Tax Increment Bonds, Series 1995A. The proceeds of this issue will be used to finance the installation of municipal sewer and water extensions, and streets in the City's Development District I for the completion of McKinley Street, Uranium Street and Sunwood Drive and the extension of services for the development of the Anoka Electric Cooperative site. The issue bears an overall interest rate of 5.487 %, and has a final maturity date of August 1, 2007. The principal and interest will be paid from tax increments resulting from increases in the taxable value of real property in tax increment financing districts in the City. Upon review of this issue by Moody's Investors Service, the current bond rating of Al was maintained.