1995 CAFR - Laserfiche WebLink

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DEBT ADMINISTRATION (continued) The following is a summary of bonded debt for fiscal year 1995: Gross Debt Outstanding, January 1, 1995 $ 7,490,000 Add Bonds Issued - 1995 2,600,000 Deduct Bonds Redeemed - 1995 1.930.000 Gross Debt Outstanding, December 31, 1995 $ 8,160,000 Less Amounts Available in Debt Service Funds, December 31, 1995 4.820.572 Net Bonded Debt, December 31, 1995 $ 3.339.428 The City has a current Moody's Investors Service bond rating of Al, which was last increased during 1993. This above average rating has had a positive effect on the sale of the City's bonds by broadening the City's market and lowering the interest rates on borrowing. TAX INCREMENT DISTRICTS The City has two development districts that were created in accordance with State Statute 472. Within these districts are five tax increment fmancing districts, three of which are for redevelopment and two for economic development. These tax increment fmancing districts capture increments from residential and commercial development that occur within the districts. During 1991, the City entered into private development agreements for an area referred to as the Wood Pond Projects and consisted of three subdivisions. Contemplated in the development agreements was reimbursement to each of the developers for special trunk assessments incurred during construction. The vehicle used for this reimbursement is called a tax increment revenue note. These notes provide for the payment of prinicipal and interest (8 %) up to the lessor of the principal amount of the note, or 97% of available tax increments. Payments from available increments are applied first to accrued interest and then to principal balances. If increments received through the year 1999 are not sufficient to pay off each developer, the note will be retired anyway. Any excess increments received after 1999 will be retained by the City. The outstanding principal balance on these notes at December 31, 1995, was $349,577. This amount is not included in long -term debt due to the nature of payment of the notes and the unsurety of collection of tax increments. Included in current liabilities for the year ended December 31, 1995, is $247,836, which represents the portion of increments collected in 1995 that were payable to the developers on February 1, 1996. These payments are recorded as capital outlay as they represent a payment for trunk infrastructure contributed by the developers. As of December 31, 1995, the City had outstanding $7,770,000 of Tax Increment Financing Bonds which had been issued for the purpose of constructing public improvements and assisting developers with site improvements within the tax increment project areas. All bonds are payable solely from annual increments received. General Fund FINANCIAL SECTION The General Fund is the general operating fund of the City and is used to account for all financial resources except those required to be accounted for in another fund. General Fund revenues, including transfers for 1995, totaled $3,414,918, an increase of $468,575, or 15.9 percent over the prior year. Expenditures, including transfers, totaled $3,185,714, an increase of $187,342, or 6.2 percent over 1994 levels. viii