1988 CAFR - Laserfiche WebLink

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GENERAL LONG TERM DEBT ACCOUNT GROUP. General obligation bonds and other forms of long -term debt supported by general revenues and the full faith and credit of the City are obligations of the City as a whole and not a single individual fund. The proceeds from such debt may also be spent on facilities which are utilized in the operations of several funds. For this reason, the amount of unmatured Tong -term indebtedness, which is backed by the full faith and credit of the City, is accounted for and reported in a separate self - balancing group of accounts entitled General Long Term Debt Account Group. During 1988 no bonds were issued by the City. DEBT ADMINISTRATION. At December 31, 1988, the City's bonded general obligation debt outstanding was comprised of the following: Equipment certificates $ 25,000 Special assessment bonds 3,275,000 Tax increment bonds 3.460.000 $ 6.760.000 The most recent debt issued by the City was in September 1987 which received an "A" rating from Moody's Investors Service. The City's legal debt limitation is $5,757,490 which equals 2% of property market value as specified by State Statutes. Although all certificates and bonds are general obligations of the City, only the equipment certificate obligations are subject to this limitation while special assessment and tax increment bonds are excluded due to the funding source of these issues. The statistical tables included in this report provide additional useful information for purposes of evaluating the City's debt. RISK MANAGEMENT. The City participates in the liability, property, and workers' compensation programs sponsored by the League of Minnesota Cities Insurance Trust. In addition, the City appoints an agent of record to assist with the administration, Toss prevention, and risk management. ONDIEPIENDIENT QUDD IIT State law requires an annual audit of the City's financial records and transactions supporting the financial statements. This requirement has been complied with and the auditors' opinion has been included in this report. A Single Audit is required if Federal funds received in 1988 exceeded $25,000. For this reason, the City of Ramsey was not subject to a Single Audit for the year ended December 31, 1988. The accompanying financial statements have been examined by Pannell Kerr Forster, Independent Certified Public Accountants. This firm is engaged by the City Council to render an opinion on the City's financial statements in accordance with generally accepted auditing standards.