2001 CAFR - Laserfiche WebLink

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The following is a summary of bonded debt for fiscal year 2001: Gross Debt Outstanding, January 1, 2001 $ 8,717,000 Add Debt Issued — 2001 4,860,000 Deduct Debt Redeemed — 2001 481,000 Gross Debt Outstanding, December 31, 2001 13,096,000 Less Amounts Available in Debt Service Funds, December 31, 2001 566,387 Net Debt, December 31, 2001 $ 12,529,613 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 ten tax increment financing districts, eight of which are for redevelopment and two for economic development. These tax increment financing districts capture increments from residential and commercial development that occur within the districts. As of December 31, 2001, the City had $11,275,000 of Tax Increment Financing Bonds which have been issued for the purpose of constructing public improvements and assisting developers with site improvements within the tax increment project areas. Although the City pledges its full faith and taxing power for these bonds, it is anticipated that all bonds will be paid solely from annual increment. The City also has several private development agreements in effect which basically dedicate future tax increments to be received from certain properties, in specific years, to reimburse developers for special trunk assessments. The agreements utilize tax increment financing revenue notes which include principal and interest due to the developers. Payments on these notes are only due if sufficient tax increments are generated by these properties. The notes are cancelled at the end of the agreement term, whether or not they have been repaid. Any additional tax increments received in years following the term are retained by the City. The outstanding principal balance on these notes at December 31, 2001, was $1,486,240. 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. xi