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DEBT SERVICE FUNDS
<br />Overview
<br />Debt Service funds are used to account for the accumulation of resources used for the payment of principal,
<br />interest, and fiscal charges for the various City debt issues.
<br />The City maintains an “AA+” rating from Standard & Poor’s for the City’s general obligation debt.
<br />Outstanding Debt:
<br />The City has two bond issues outstanding. These bonds are the 2014A Bonds and the 2015A Bonds. In addition,
<br />the City has two notes outstanding with Ramsey County, and one interfund loan in the Debt Service funds.
<br />2014A Bonds (Fund 310)
<br />The 2014A Bonds were issued for the construction of the Public Works Facility. The repayment of this
<br />bond is from the Water/Sewer Equipment Replacement Fund (604). A transfer from the Water/Sewer
<br />Equipment Replacement Fund to the 2014A Debt Service fund (310) is made each year for the debt
<br />service payment. The final maturity date on these bonds is in 2034. Due to the current interest rate
<br />environment, a refunding is possible on this bond issue. The current repayment schedule is below:
<br />Year Principal Interest Total
<br />2021 $150,000 $77,725 $227,725
<br />2022 150,000 74,350 224,350
<br />2023 160,000 70,475 230,475
<br />2024 160,000 66,475 226,475
<br />2025 165,000 62,413 227,413
<br />2026 170,000 57,800 227,800
<br />2027 175,000 52,625 227,625
<br />2028 185,000 47,225 232,225
<br />2029 185,000 41,675 226,675
<br />2030 190,000 36,050 226,050
<br />2031 200,000 29,700 229,700
<br />2032 210,000 22,000 232,000
<br />2033 220,000 13,400 233,400
<br />2034 225,000 4,500 229,500
<br />Total $2,545,000 656,413 $3,201,413
<br />DRAFT DOCUMENT -9/3/2020 72
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