1993 CAFR - Laserfiche WebLink

Home

CITY OF RAMSEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1993 Note 5. LONG - TERM OBLIGATIONS (Continued) A. Components of Long -Term Deht (Continued) The long -term debt obligations outstanding at year -end are summarized as follows: General Obligation - Special assessment bonds Tax increment bonds Compensated absences B Description of Long - Term Debt Maturities 1994 -2000 1994 -2007 -23- Balance Rates 12/31/93 4.00 - 8.40% $ 2,355,000 3.10 - 9.75% 5,585,000 123,078 $ 8,063,078 All of the City's outstanding debt is general obligation debt backed by the full faith and credit of the City. * Land Mortgage Payable - During 1989, the City entered into a Purchase Agreement for a parcel of land adjacent to the City of Ramsey Municipal Center. The purchase price was $60,000 with the remaining balance payable in quarterly installments. The final payment on this Agreement was made on April 1, 1993. * Special Assessment Bonds - These bonds were issued to finance various improvements and will be repaid primarily from special assessments levied on the properties benefitting from the improvements. However, some issues are partly financed by the ad valorem levies. * 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. In 1993 the City issued General Obligation Tax Increment Refunding Bonds Series 1993A totaling $2,225,000. The proceeds of this bond issue will be used to refund the 1997 through 2007 maturities totaling $2,150,000 of the City's $2,800,000 General Obligation Tax Increment Bonds Series 1987A. The refunding was accomplished by means of a "crossover" mechanism. At the time of settlement, all proceeds were placed in an escrow account from which the interest on the Series 1993A Bonds will be paid. The City will continue to pay debt service on the Series 1987A Bonds through February 1, 1996, on which date the remaining principal will be paid from the escrow account and the City will crossover and pay the debt service on the Series 1993 A Bonds. This crossover refunding was undertaken to reduce total debt service and resulted in a total savings of $354,054 with a present value savings of $257,330. * Liability for 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.