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NOTE 5 — LONG -TERM DEBT (CONTINUED)
<br />CITY OF RAMSEY
<br />Notes to Financial Statements (continued)
<br />December 31, 2000
<br />° Lease Revenue Bonds - These bonds were issued by the Economic Development Authority (EDA)
<br />of Ramsey for the purpose of financing the construction of a fire station. Pursuant to Minnesota
<br />Statutes § 471.64, Subd. 1 and § 465.71, lease- purchase contracts between the EDA and the City,
<br />and a Trust Indenture between the EDA and U.S. Bank Trust have been established. The bonds are
<br />special obligations of the City as issuer and owner of the land and building. The City has pledged
<br />rental payments in amounts equal to the debt service requirements and plans to annually appropriate
<br />City funds available for this purpose. Minnesota Statutes § 475.50, Subd. 5(e), allows cities to make
<br />a special levy (outside of levy limits) to pay principal and interest on bonds of another political
<br />subdivision. Through the transactions described above, the City (Primary Government) has, in
<br />substance, assumed the debt service on the revenue bonds issued by the EDA. Therefore, the bonds
<br />have been included in the City's General Long -Term Debt Account Group.
<br />Liability for Compensated Absences — The liability represents vested benefits earned by
<br />Governmental Fund employees through the end of the year which will be paid or used in future
<br />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 capital
<br />contributed to the funds by other City funds. Changes in contributed capital during 2000 are as follows:
<br />Water Utility
<br />Sewer Utility
<br />Street Light
<br />Storm Water
<br />Utility
<br />Balance
<br />Beginning
<br />of Year
<br />$ 10,642,815
<br />8,675,311
<br />124,883
<br />Additions
<br />$ 19,443,009 $ 1,342,619
<br />Balance End
<br />of Year
<br />$ 721,604 $ 11,364,419
<br />350,998 9,026,309
<br />4,500 129,383
<br />265.517
<br />265.517
<br />$ 20,785,628
<br />-25-
<br />I Tnreserved
<br />$ 8,749,748
<br />8,381,001
<br />129,383
<br />265.517
<br />Components of
<br />Contributed Capital
<br />Reserved
<br />For Future
<br />Construction
<br />$ 2,614,671
<br />645,308
<br />Total
<br />11,364,419
<br />9,026,309
<br />129,383
<br />265.517
<br />$ 17,525,649 $ 3,259,979 $ 20,785,628
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