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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2015 <br /> <br />51 <br /> <br />Note 4 CITY INDEBTEDNESS (CONTINUED) <br />Description and Restrictions of Long-Term Debt (Continued) <br /> <br />Revenue Bonds – These bonds were issued to finance various improvements in the water fund and will be repaid <br />primarily from pledged revenues derived from the constructed assets. <br /> <br />In August 2015, the City issued General Obligation Bonds of $3,095,000 to fund various street improvements <br />within the City. The bond was issued at a rate of 2-3%. The bonds will mature in 2031. In October 2015, the City <br />issued EDA Leased Revenue bonds of $4,350,000 to fund the construction of a fire station. The bond was issued at <br />a rate of 2-3% . The bonds will mature in 2036. <br /> <br />The liabilities for compensated absences, other post-employment benefits, and net pension in the governmental <br />activities will be liquidated by the general fund. The liabilities for Proprietary Fund employees are included in the <br />accrued liabilities of those funds. <br /> <br /> <br />Note 5 LEGAL DEBT MARGIN <br />The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable principally <br />from property taxes. The City of Lino Lakes’ legal debt margin for 2015 is computed as follows: <br /> <br />12/31/2015 <br />Market Value 1,694,366,064$ <br />Applicable Percentage 3.0% <br />Debt Limit 50,830,982 <br />Amount of Debt Applicable to Debt Limit: <br />Total Bonded Debt 22,891,250 <br />Less: Special Assessment Bonds (6,485,000) <br /> Tax Abatement Bonds (1,925,000) <br /> Utility Revenue Bonds (135,000) <br /> Tax Increment Financing Bonds (2,405,000) <br /> Total Debt Applicable to Debt Limit 11,941,250 <br />Legal Debt Margin 38,889,732$