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CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2024
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<br />CHANGES IN LONG-TERM DEBT
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<br />The following is a schedule of changes in long-term debt for the year ended December 31, 2024:
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<br />Beginning Ending Due Within
<br />Balance Additions Deletions Balance One Year
<br />Governmental Activities:
<br /> Bonded debt:General obligation bonds $16,735,000 $ - $1,860,000 $14,875,000 $1,455,000
<br />Special assessment bonds 415,000 - 220,000 195,000 160,000
<br />Direct borrowings - capital note 35,475 - 35,475 - -
<br />Unamortized bond premiums 734,628 - 77,170 657,458 -
<br />Unamortized bond discounts (2,585) - (1,351) (1,234) -
<br /> Compensated Absences PayableCompensated absences payable* 815,278 363,477 - 1,178,755 826,030
<br />Total governmental activities $18,732,796 $363,477 $2,191,294 $16,904,979 $2,441,030
<br />Business-Type Activities:
<br />Direct borrowings - MPFA note $ - $1,216,285 $ - $1,216,285 $349,190
<br />Compensated absences payable* 79,049 48,313 - 127,362 80,238
<br />Total business-type activities $79,049 $1,264,598 $ - $1,343,647 $429,428
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<br />* The change in compensated absences is presented as a net change.
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<br />DESCRIPTIONS OF LONG-TERM DEBT
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<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.
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<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.
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<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.
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<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.
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<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.
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<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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