12-14-2022 Council Packet - Laserfiche WebLink

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DEBT SERVICE FUNDS Overview Debt Service funds are used to account for the accumulation of resources used for the payment of principal, interest, and fiscal charges for the various City debt issues. The City maintains an “AA+” rating from Standard & Poor’s for the City’s general obligation debt. Outstanding Debt: The City has two bond issues outstanding. These bonds are the 2014A Bonds and the 2015A Bonds. In addition, the City has one note outstanding with Ramsey County, and two interfund loans in the Debt Service funds. 2014A Bonds (Fund 310) The 2014A Bonds were issued for the construction of the Public Works Facility. The repayment of this bond is from the Water/Sewer Equipment Replacement Fund (604). A transfer from the Water/Sewer Equipment Replacement Fund to the 2014A Debt Service fund (310) is made each year for the debt service payment. These bonds are callable in 2023. The final maturity date on these bonds is in 2034. The repayment schedule is below: Year Principal Interest Total 2023 $160,000 $70,475 $230,475 2024 160,000 66,475 226,475 2025 165,000 62,413 227,413 2026 170,000 57,800 227,800 2027 175,000 52,625 227,625 2028 185,000 47,225 232,225 2029 185,000 41,675 226,675 2030 190,000 36,050 226,050 2031 200,000 29,700 229,700 2032 210,000 22,000 232,000 2033 220,000 13,400 233,400 2034 225,000 4,500 229,500 Total $2,245,000 $504,338 $2,749,338 2015A Refunding Bonds (Fund 320) The 2015A Refunding Bonds were issued for projects in TIF District 5-1 (St. Jude). The repayment of these bonds is from the tax increment revenues in TIF District 5-1(460), a Capital Projects Fund. A transfer from TIF District 5-1(460) to the 2015A Debt Service fund (320) is made each year for the debt service payment. Tax increment revenues are projected to produce 100% of the revenue to repay these bonds. The final maturity date on these bonds is in 2026. The repayment schedule is below: 81