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CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2017
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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
<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 $19,041
<br />Bonded Debt 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, 2017 totaled $13,005,401.
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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 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.
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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 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
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