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CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2024
<br />CHANGES IN LONG-TERM DEBT
<br />The following is a schedule of changes in long-term debt for the year ended December 31, 2024:
<br />Beginning
<br />Ending
<br />Due Within
<br />Balance
<br />Additions
<br />Deletions
<br />Balance
<br />One Year
<br />Governmental Activities:
<br />General obligation bonds
<br />$16,735,000
<br />$ -
<br />$1,860,000
<br />$14,875,000
<br />$1,455,000
<br />Special assessment bonds
<br />415,000
<br />-
<br />220,000
<br />195,000
<br />160,000
<br />Direct borrowings -capital note
<br />35,475
<br />-
<br />35,475
<br />-
<br />-
<br />Unamortized bond premiums
<br />734,628
<br />-
<br />77,170
<br />657,458
<br />-
<br />Unamortized bond discounts
<br />(2,585)
<br />-
<br />(1,351)
<br />(1,234)
<br />-
<br />Compensated absences payable*
<br />815,278
<br />363,477
<br />-
<br />1,178,755
<br />826,030
<br />Total governmental activities
<br />$18,732,796
<br />$363,477
<br />$2,191,294
<br />$16,904,979
<br />$2,441,030
<br />Business -Type Activities:
<br />Direct borrowings - MPFA note
<br />$ -
<br />$1,216,285
<br />$ -
<br />$1,216,285
<br />$349,190
<br />Compensated absences payable*
<br />79,049
<br />48,313
<br />-
<br />127,362
<br />80,238
<br />Total business -type activities
<br />$79,049
<br />$1,264,598
<br />$ -
<br />$1,343,647
<br />$429,428
<br />* The change in compensated absences is presented as
<br />a net change.
<br />DESCRIPTIONS OF LONG-TERM DEBT
<br />General Obligation Bonds — the bonds were issued for improvements or projects which benefited the City as a whole
<br />and, therefore, are repaid from ad valorem levies.
<br />Special Assessment Bonds — the bonds were issued to finance various improvements and will be repaid primarily
<br />from special assessments levied on the properties benefiting from the improvements. However, some issues are
<br />partly financed by ad valorem levies.
<br />Utility Revenue Bonds — the 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 />Capital Note — the note was issued to fund the cost of the acquisition of capital equipment to be used by the North
<br />Metro Telecommunications Commission in the operation of a cable communications system. The note was repaid
<br />from franchise fee revenue.
<br />Water Revenue Note — the note was issued to fund the construction of a water treatment plant and will be repaid
<br />from pledged revenues derived from charges for services of the water fund. Note proceeds are received from the
<br />Minnesota Public Facilities Authority (MPFA) on a reimbursement basis as the project progresses. The total amount
<br />of note proceeds available to disburse to the City is $15,996,190.
<br />The MPFA Bond Purchase and Project Loan Agreement defines Events of Default, including remedies if default
<br />were to occur. Remedies may include the following: 1) an interest penalty, 2) withhold approval of any
<br />disbursement request, 3) reject any pending application for financial assistance, 4) impose an immediate increase in
<br />the interest rate on the loan by eliminating all interest rate discounts, and 5) demand immediate payment of all
<br />outstanding principal and interest (to the extent permitted by law).
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