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NOTE 5 — LONG -TERM DEBT (CONTINUED)
<br />• Tax Increment Refunding Bonds Series 2003A — In February 2003, the City issued refunding
<br />bonds totaling $945,000. The proceeds of this issue were used to call in advance the remaining
<br />principal of the 1 993A issue, and the City will assume the principal and interest payments on the
<br />2003 issue. This refunding reduced the City's total future debt service payments by $41,268 and
<br />resulted in a present value savings of $39,715.
<br />• Tax Increment Refunding Bonds Series 2003B — In July 2003, the City issued refunding bonds
<br />totaling $1,285,000. The proceeds of this issue were placed in a restricted account from which
<br />future debt service payments will be made on the City's Tax Increment Bonds Series 1995A on
<br />February 1, 2005, the call date of the refunded issue. Until the call date, the City will continue to
<br />make all debt service payments on the 1995 issue. On February 1, 2005, the restricted account
<br />will be used to call the remaining principal of the 1995 issue, and the City will assume the
<br />principal and interest payments on the 2003 issue. This "crossover refunding" reduced the City's
<br />total future debt service payments by $69,884 and resulted in a present value savings of $63,715.
<br />• Lease Revenue Bonds — These bonds were issued by the Economic Development Authority
<br />(EDA) of Ramsey for the purpose of financing the construction of a fire station. Pursuant to
<br />Minnesota Statutes § 471.64, Subd. 1 and § 465.71, lease - purchase contracts between the EDA
<br />and the City, and a Trust Indenture between the EDA and U.S. Bank Trust, have been established.
<br />The bonds are special obligations of the City as issuer and owner of the land and building. The
<br />City has pledged rental payments in amounts equal to the debt service requirements and plans to
<br />annually appropriate city funds available for this purpose. Minnesota Statutes § 475.50, Subd.
<br />5(e), allows cities to make a special levy (outside of levy limits) to pay principal and interest on
<br />bonds of another political subdivision. Through the transactions described above, the City
<br />(Primary Government) has, in substance, assumed the debt service on the revenue bonds issued
<br />by the EDA. Therefore, the bonds have been included in the City's General Long -Term Debt
<br />Account Group.
<br />• Capital Equipment Certificates — These certificates were issued to finance various capital
<br />equipment purchases and will be repaid via ad valorem levies.
<br />• Compensated Absences — The liability represents vested benefits earned by Governmental Fund
<br />employees through the end of the year which will be paid or used in future periods.
<br />NOTE 6 — PROPRIETARY FUNDS' CONTRIBUTED CAPITAL
<br />Contributed capital balances in the Proprietary Funds represent the cost of property or the amount of
<br />capital contributed to the funds by other city funds. Changes in contributed capital during 2003 are as
<br />follows:
<br />Water Utility
<br />Sewer Utility
<br />Street Light
<br />Storm Water
<br />Utility
<br />Balance
<br />Beginning Balance End
<br />of Year Additions of Year
<br />$ 13,351,472 $ 58,151 $ 13,409,623
<br />9,285,760 68,521 9,354,281
<br />129,383 — 129,383
<br />1,002,353 111,375 1,113,728
<br />$ 23,768,968 $ 238,047 $ 24,007,015
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<br />Unreserved
<br />$ 10,794,932
<br />8,708,973
<br />129,383
<br />$ 20,747,016
<br />Components of
<br />Contributed Capital
<br />Reserved
<br />for Future
<br />Construction Total
<br />$ 2,614,691
<br />645,308
<br />$ 13,409,623
<br />9,354,281
<br />129,383
<br />1,113,728 — 1,113,728
<br />$ 3,259,999 $ 24,007,015
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