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CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2016
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<br />DEBT SERVICE REQUIREMENTS
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<br />Future principal and interest payments required to retire long-term debt are as follows:
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<br />Years Ending
<br />December 31 Principal Interest Principal Interest Principal Interest
<br />2017 $6,683,000 $548,591 $390,000 $60,165 $30,525 $5,280
<br />2018 2,997,250 412,227 405,000 49,565 31,350 4,670
<br />2019 2,575,000 363,206 420,000 42,415 32,175 4,042
<br />2020 2,401,000 319,761 130,000 13,360 33,000 3,399
<br />2021 2,150,000 274,974 - - 33,000 2,739
<br />2022-2026 5,520,000 869,102 - - 103,950 4,191
<br />2027-2031 2,315,000 423,581 - - - -
<br />2032-2036 1,350,000 138,062 - - - -
<br />Total $25,991,250 $3,349,504 $1,345,000 $165,505 $264,000 $24,321
<br />Bonded Debt Improvement Note Capital Note
<br />It is not practicable to determine the specific year for payment of long-term compensated absences payable. For
<br />governmental activities, compensated absences are liquidated by the General Fund. For business-type activities,
<br />compensated absences are liquidated by the Water and Sewer Funds.
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<br />DEFERRED AD VALOREM TAX LEVIES – BONDED DEBT
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<br />All long-term bonded indebtedness is backed by the full faith and credit of the City, including special assessment
<br />and revenue bond issues. General Obligation bond issues are financed by ad valorem tax levies and special
<br />assessment bond issues are partially financed by ad valorem tax levies in addition to special assessments levied
<br />against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax
<br />levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County
<br />Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject
<br />to cancellation when and if the City has provided alternative sources of financing. The City Council is required
<br />to levy any additional taxes found necessary for full payment of principal and interest.
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<br />The future scheduled tax levies are not shown as assets in the accompanying financial statements. Future
<br />scheduled tax levies for all bonds outstanding at December 31, 2016 totaled $14,800,989.
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<br />CURRENT REFUNDINGS
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<br />On November 23, 2016, the City issued $1,975,000 of Taxable General Obligation Improvement Refunding
<br />Bonds, Series 2016B with an average interest rate of 1.29%. On February 1, 2017, the net proceeds will be used
<br />to redeem the 2018 through 2021 maturities of the Taxable General Obligation Improvement Bonds, Series
<br />2005A with interest rates of 5.00% - 5.15%. The City refunded the bonds to reduce its total debt service
<br />payments over four years by $145,931 and to obtain an economic gain (difference between the present value of
<br />the debt service payments on the old and new debt) of $130,682.
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<br />On November 23, 2016, the City issued $1,600,000 of General Obligation Tax Abatement Refunding Bonds,
<br />Series 2016C with an average interest rate of 1.34%. On February 1, 2017, the net proceeds will be used to
<br />redeem the 2018 through 2023 maturities of the General Obligation Tax Abatement Bonds, Series 2006C with
<br />interest rates of 4.25% - 4.30%. The City refunded the bonds to reduce its total debt service payments over six
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