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NOTE 5 — LONG -TERM DEBT (CONTINUED)
<br />B. Statement of Changes in General Long -Term Debt
<br />General Obligation
<br />Tax Increment Bonds $ 9,960,000 $ 2,230,000 $ 1,955,000 $ 10,235,000
<br />Lease Revenue Bonds 1,570,000 — 60,000 1,510,000
<br />Capital Equipment Certificates 429,000 675,000 121,000 983,000
<br />Compensated absences — net 307,748 43,668 — 351,416
<br />C. Minimum Debt Payments
<br />Minimum annual principal and interest payments required to retire long -term debt, not including
<br />compensated absences are as follows:
<br />Tax Lease Capital
<br />Year Ending Increment Revenue Equipment
<br />December 31, Bonds Bonds Certificates
<br />2004 $ 1,651,021 $ 139,815 $ 205,825
<br />2005 2,827,876 141,908 227,325
<br />2006 1,477,268 143,682 229,450
<br />2007 1,172,954 140,235 226,580
<br />2008 1,197,257 141,610 164,000
<br />Thereafter 3,733,636 1,568,923 —
<br />12,060,012 2,276,173 1,053,180
<br />Less amount
<br />representing
<br />interest 1,825,012 766,173 70,180
<br />D. Descriptions and Restrictions of Long -Term Debt
<br />Balance
<br />Beginning New Debt Debt Balance
<br />of Year Issues Retired End of Year
<br />$ 12,266,748 $ 2,948,668 $ 2,136,000 $ 13,079,416
<br />$ 10,235,000 $ 1,510,000 $ 983,000
<br />All of the City's outstanding debt is general obligation debt backed by the full faith and credit of the City,
<br />except for the Lease Revenue Bonds which are obligations of Economic Development Authority of
<br />Ramsey.
<br />• Tax Increment Bonds — These bonds are issued for redevelopment and economic development
<br />projects. The additional tax revenue resulting from increased assessed valuation of the properties
<br />is the major source of revenue used to retire the related debt. The Tax Increment Bonds, Series
<br />1999A will be funded by operating rental income from the Senior Housing Project if sufficient,
<br />with tax increments being pledged as the second source of funding.
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