1988 CAFR - Laserfiche WebLink

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CITY OF RAMSEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (Continued) December 31, 1988 Note 5. LONG -TERM DEBT OBLIGATIONS (continued) A. Components of Long -Term Debt (continued) Balance December 31, Maturities Rates 1988 General obligation - Equipment certificates 1989 8.75% $ 25,000 Special assessment bonds 1989 - 1996 5.50 - 11.75% 3,275,000 Tax increment bonds 1989 - 2007 5.00 - 9.75% 3,460,000 Capital lease 1989 10.70% 5,752 Compensated absences 63,288 $6,829,040 B. Description of Long -Term Debt All of the City's outstanding debt is general obligation debt backed by the full faith and credit of the City. o Equipment Certificates - These certificates were issued for the purchase of equipment which benefitted the City as a whole and are, therefore, repaid from ad valorem levies. • Tax Increment Bonds - These bonds were issued for redevelop- ment projects. The additional tax revenue resulting from increased assessed valuation of the redeveloped properties is the major source of revenue used to retire the related debt. o Special Assessment Bonds - These bonds were issued to finance various improvements and will be repaid primarily from special assessments levied on the properties benefitting from the improvements. However, some issues are partly financed by ad valorem levies. o Capital Lease - This was used to finance the acquisition of computer equipment. The lease requires monthly installments of $1,181 and provides for a bargain purchase option at the end of the lease term. Liability for Compensated Absences - This liability represents vested benefits earned by Governmental Fund employees through the end of the year which will be paid or used in future periods.