Laserfiche WebLink
CITY OF RAMSEY <br />Notes to Financial Statements (continued) <br />December 31, 1998 <br />NOTE 14 -TAX INCREMENT FINANCING REVENUE NOTES (CONTINUED) <br />During 1998, the City entered into a private development agreement for the O'Brien Properties. The City <br />agreed to reimburse the developer through future potential tax increments received from this development. <br />Interest shall accrue on the principal amount of $41,275 through the period ending December 31, 2000 at <br />the rate of 0% per annum, and from January 1, 2001, and thereafter at the rate of 8% per annum. The <br />scheduled payment due on any scheduled payment date is payable solely from and only to the extent that the <br />City shall have received, as of such scheduled payment date, net tax increments. The first payment due to <br />the developer will be on January 1, 2001. The final payment is scheduled for December 31, 2005. Any <br />excess increments received after 2005 will be retained by the City. <br />Included in current liabilities for the year ended December 31,1998, is $58,716, which represents the portion <br />of increments collected in 1998 that were payable to the developers on February 1, 1999. These payments <br />are recorded as capital outlay as they represent a payment for trunk infrastructure contributed by the <br />developers. <br />The outstanding principal balance as of December 31, 1998, for all of these agreements was $736,961. This <br />amount is not included in long-term debt because of the nature of these notes in that repayment is required <br />only if sufficient tax increments are. received. The City's position is that these are obligations to assign <br />future and uncertain revenue sources and as such, have not been included in long-term debt. <br />NOTE 15 -DEPOSITS PAYABLE <br />Platting and performance deposits are accounted for in the City's Escrow Expendable Trust Fund. A <br />summary of the 1998 changes in deposits is as follows: <br />Total deposits payable January 1, 1998 $ 130,431 <br />Add deposits received 577,519 <br />Less payments from deposit account (293,6991 <br />Total deposits payable December 31, 1998 $ 414,251 <br />-32- <br />