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CITY OF RAMSEY, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31,1997
<br />Note 5. LONG-TERM OBLIGATIONS (continued)
<br />B. Description of Long-Term Debt
<br />All of the City's outstanding debt is general obligation debt backed by the full faith and credit of the City.
<br />* Tax Increment Bonds -These bonds are issued for redevelopment and economic development projects. The
<br />additional tax revenue resulting from increased assessed valuation of the properties is the major source of
<br />revenue used to retire the related debt.
<br />In 1997, the City retired General Obligation Tax Increment Bonds Series 1987C totaling $160,000. The
<br />retirement was completed in August, 1997, with principal and interest payments totaling $26,398.
<br />~Pcial Assessment Bonds -These bonds were issued to finance various improvements and will be repaid
<br />' primarily from special assessments levied on the properties benefitting from the improvements. However,
<br />some issues are partly fmanced by ad valorem levies.
<br />* T iability for 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 />C. ,ranges in Long-Term Debt
<br /> Balance Balance
<br /> 1/1/97 Additions Retired 12/31/97
<br />General Obligation-
<br />Tax increment bonds $ 5,315,000 $ $ 370,000 $ 4,945,000
<br />' Special assessment bonds 215,000 50,000 165,000
<br />Compensated absences -net 192,752 10,461 182,291
<br />
<br /> $ 5,722,752 $ $ 430,461 $ 5,292,291
<br />'
<br />' D. Minimum Debt Pam
<br />General obligation bond maturities are as follows:
<br />Year Principal Interest Total
<br />1998 415,000 240,582 655,582
<br />1999 430,000 220,089 650,089
<br />'
<br />2000 360,000 201,569 561,569
<br />2001 355,000 185,594 540,594
<br />2002 410,000 168,050 578,050
<br />2003-2010 3,140,000 589,173 3,729,173
<br />$ 5,110,000 $ 1,605,057 $ 6,715,057
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