1997 CAFR - Laserfiche WebLink

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Net bonded debt per capita and the percentage of net debt to the tax capacity and market value are useful indicators of the City's debt position to municipal management, citizens, and investors in city bonds. Debt statistics are listed as follows: Net Bonded Debt per Capita $286.16 Ratio of Net Bonded Debt to Tax Capacity 52.03% Ratio of Net Bonded Debt to Market Value .83% The following is a summary of bonded debt for fiscal year 1997: Gross Debt Outstanding, January 1, 1997 $ 5,530,000 Add Bonds Issued -1997 Deduct Bonds Redeemed -1997 420.000 Gross Debt Outstanding, December 31, 1997 $5,110,000 Less Amounts Available in Debt Service Funds, December 31, 1997 2,099 Net Bonded Debt, December 31, 1997 $ 5.107.901 The City has a current Moody's Investors Service bond rating of A1, 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. The City has two development districts that were created in accordance with State Statute 472. Within these districts are six tax increment fmancing districts, three of which are for redevelopment and three for economic development. These tax increment fmancing districts capture increments from residential and commercial development that occur within the districts. During 1991, the City entered into private development agreements for an area referred to as the Wood Pond Projects and consisted of three subdivisions. Contemplated in the development agreements was reimbursement to each of the developers for special trunk assessments incurred during construction. The vehicle used for this reimbursement is called a tax increment revenue note. These notes provide for the payment of prinicipal and interest (8%) up to the lessor of the principal amount of the note, or 97% of available tax increments. Payments from available increments are applied first to accrued interest and then to principal balances. If increments received through the year 1 X99 are not sufficient to pay off each developer, the note will be retired anyway. Any excess increments received after 1999 can be retained by the City. The City entered into two additional limited revenue taxable tax increment notes during 1996. These notes, which are the result of a joint effort to develop and market the Anoka Electric Cooperative Business Park, are payable to the developer from increments generated in the business park. Principal and interest payments begin on December 15, 1998, and continue through December 15, 2005, at which time the district expires. The City entered into an additional limited revenue taxable tax increment note in 1997 to further develop and market the Anoka Electric Cooperative Business Park. This note is payable to the developer from increments generated in the business park. Principal and interest payments will begin on December 15, 2000, and payments are scheduled to end on December 15, 2005. Any increments received after this date will be retained by the City. viii