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CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2016
<br />DEBT SERVICE REQUIREMENTS
<br />Future principal and interest payments required to retire long-term debt are as follows:
<br />Years Ending Bonded Debt
<br />December 31 Principal Interest
<br />2017
<br />2018
<br />2019
<br />2020
<br />2021
<br />2022-2026
<br />2027-2031
<br />2032-2036
<br />Total
<br />$6,683,000
<br />2,997,250
<br />2,575,000
<br />2,401,000
<br />2,150,000
<br />5,520,000
<br />2,315,000
<br />1,350,000
<br />$25,991,250
<br />$548,591
<br />412,227
<br />363,206
<br />319,761
<br />274,974
<br />869,102
<br />423,581
<br />138,062
<br />$3,349,504
<br />Improvement Note
<br />Capital Note
<br />Principal
<br />Interest
<br />Principal
<br />Interest
<br />$390,000
<br />$60,165
<br />$30,525
<br />$5,280
<br />405,000
<br />49,565
<br />31,350
<br />4,670
<br />420,000
<br />42,415
<br />32,175
<br />4,042
<br />130,000
<br />13,360
<br />33,000
<br />3,399
<br />-
<br />-
<br />33,000
<br />2,739
<br />-
<br />-
<br />103,950
<br />4,191
<br />$1,345,000
<br />$165,505
<br />$264,000
<br />$24,321
<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.
<br />DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT
<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.
<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.
<br />CURRENT REFUNDINGS
<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.
<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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