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CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2017
<br />CHANGES IN LONG-TERM DEBT
<br />The following is a schedule of changes in City indebtedoess for the year ended December 31, 2017:
<br />Beginning Ending
<br />Balance Additions Deletions Balance
<br />Governmental Activities:
<br />General obligation bonds $18,196,250 $311,000 $3,793,000 $14,714,250
<br />Special assessment bonds 7,795,000 2,890,000 4,905,000
<br />Total bonded debt 25,991,250 311,000 6,683,000 19,619,250
<br />Improvement note 1,345,000 1,345,000
<br />Capital note 264,000 30,525 233,475
<br />Unamortized bond premiums 166,322 24,140 142,182
<br />Unamortized bond discounts (25,491) (6,827) (18,664)
<br />Compensated absences payable 734,415 614,868 580,375 768,908
<br />Total governmental activities $28,475,496 $925,868 $8,656,213 $20,745,151
<br />Business-Type Activities:
<br />Compensated absences payable $66,390 $44,663 $44,497 $66,556
<br />DESCRIPTIONS OF LONG-TERM DEBT
<br />Due Within
<br />One Year
<br />$2,084,250
<br />1,015,000
<br />3,099,250
<br />31,350
<br />492,042
<br />$3,622,642
<br />~130
<br />General Obligation Bonds -The bonds were issued for improvements or projects which benefited the City as a
<br />whole and, therefore, are repaid from ad valorem levies.
<br />Special Assessment Bonds -The bonds were issued to finance various improvements and will be repaid
<br />primarily from special assessments levied on the properties benefiting from the improvements. However, some
<br />issues are partly financed by ad valorem levies.
<br />Improvement Note-This note was used to finance improvement projects at the I-35E and County Road 14
<br />interchange and was repaid primarily with special assessments levied on the properties benefiting from the
<br />improvements.
<br />Capital Note-This note was issued to fund the cost of the acquisition of capital equipment to be used by the
<br />North Metro Telecommunications Commission in the operation of a cable communications system. The note
<br />will be repaid from franchise fee revenue.
<br />Utility Revenue Bonds -These bonds were issued to finance various improvements in the water fund and will be
<br />repaid primarily from pledged revenues derived from the constructed assets.
<br />CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2017
<br />DEBT SERVICE REQUIREMENTS
<br />Future principal and interest payments required to retire long-term debt are as follows:
<br />Years Ending Bonded Debt Ca12ita1 Note
<br />December31 Princil!!!,_ Interest Princi12al Interest
<br />2018 $3,099,250 $417,929 $31,350 $4,670
<br />2019 2,679,000 365,296 32,175 4,042
<br />2020 2,506,000 320,811 33,000 3,399
<br />2021 2,150,000 274,974 33,000 2,739
<br />2022 1,440,000 236,339 33,825 4,191
<br />2023-2027 4,675,000 742,488 70,125
<br />2028-2032 1,970,000 361,919
<br />2033-2037 1,100,000 90,000
<br />Total $19,619,250 $2,809,756 $233,475 ~041
<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 ADV ALOREM TAX LEVIES -BONDED DEBT
<br />All long-term bonded indebtedoess 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, 2017 totaled $13,005,401.
<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 I, 2017, the net proceeds were used to
<br />redeem the 2018 through 2021 maturities of the Taxable General Obligation Improvement Bonds, Series 2005A
<br />with interest rates of 5.00% -5.15%. The City refunded the bonds to reduce its total debt service payments over
<br />four years by $145,931 and to obtain an economic gain (difference between the present value of the debt service
<br />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 I, 2017, the net proceeds were 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 IV-27
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