05-28-13 Council Packet - Laserfiche WebLink

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CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2012 50 Note 4 CITY INDEBTEDNESS (CONTINUED) Revenue Bonds – These bonds were issued to finance various improvements in the water fund and will be repaid primarily from pledged revenues deri ved from the constructed assets. In November 2012, the City issued General Obligati on Improvement Bonds of $2,015,000 to complete current refunding of 2003A General Obligation Improvement to taling $435,000 and to fund $1,580,000 of traffic signal improvements. The $2,015,000 is being funded by special assessments related to the improvement project that the City has collected. The current refuding resulted in a cash flow savings of $40,347 with a net present value of $40,100 at a rate of 1.17% . The original bonds had been issued to fund various assessable public projects from 2003 and will be called on in 2013. Liability for Compensated Absences – This liability represents vested be nefits earned by governmental fund employees through the end of the year which will be paid or used in future periods. For the governmental activities, compensated absences and other post em ployment benefit liability are generally liquidated by the general fund. The liability for Proprietary Fund employees is in cluded in the accrued liabilities of those funds. Note 5 LEGAL DEBT MARGIN The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable principally from property taxes. The City of Lino Lakes’ legal debt margin for 2012 is computed as follows: 12/31/12 Market value1,640,455,854 $ Applicable percentage3.0% Debt Limit49,213,676 Amount of debt applicable to debt limit: Total bonded debt17,426,000 Less: Special assessment bonds(6,780,000) Tax abatement bonds(2,345,000) Utility revenue bonds(315,000) Tax increment financing bonds(3,395,000) Total debt applicable to debt limit4,591,000 Legal debt margin44,622,676 $