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CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2004
<br />Note 4 CITY INDEBTEDNESS (CONTINUED)
<br />The following is a schedule of changes in City indebtedness for the year ended December 31, 2004:
<br />Payable Payable Due Within
<br />12/31/2003 Issues Payments 12/31/2004 One Year
<br />Bonded debt:
<br />General obligation $ 6,030,000 $ 274,000 $ 540,000 $ 5,764,000 $ 536,000
<br />Special assessment 12,840,000 1,330,000 2,590,000 11,580,000 1,480,000
<br />Compensated absences payable - net 424,192 419,040 371,440 471,792 23,590
<br />Total general long term debt 19,294,192 2,023,040 3,501,440 17,815,792 2,039,590
<br />Proprietary Fund:
<br />Revenue bond 2,970,000 - 265,000 2,705,000 280,000
<br />Compensated absences -net 32,690 29,679 22,001 40,368 2,018
<br />Total $ 22,296,882 $ 2,052,719 $ 3,788,441 $ 20.561,160 $ 2,321,608
<br />All long -term bonded indebtedness outstanding at December 31, 2004 is backed by the full faith and credit of
<br />the City, including special assessment bond issues. For the governmental activities, compensated absences are
<br />generally liquidated by the general fund.
<br />Minimum annual principal and interest payments required to retire long -term debt, not including compensated
<br />absences payable are as follows.
<br />Governmental Activities Business -Type Activities
<br />Principal Interest Principal Interest Total
<br />Years ending December 31,
<br />2005 $ 2,016,000 $ 733,830 $ 280,000 5 136,990 $ 3,166,820
<br />2006 2,120,000 656,580 295,000 122,868 3,194,448
<br />2007 1,683,000 580,958 305,000 107,835 2,676,793
<br />2008 1,230,000 520,416 325,000 91,733 2,167,149
<br />2009 1,180,000 466,819 345,000 74,035 2,065,854
<br />2010 2014 5,650,000 1,523,863 1,155,000 100,090 8,428,953
<br />2015 - 2019 3,350,000 410,144 - 3,760,144
<br />2020 115,000 2,372 - 117,372
<br />Total $ 17,344,000 $ 4,894,982 $ 2,705,000 $ 633,551 $ 25,577,533
<br />Description and Restrictions of Long -Term Debt
<br />General Obligation Bonds - The bonds were issued for improvements or projects which benefited the City as a
<br />whole and are, therefore, repaid from ad valorem levies.
<br />Special Assessment Bonds - These 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 />Public Project Revenue Bonds and Civic Complex Lease Revenue Bonds - These bonds were issued by the
<br />Economic Development Authority (EDA) of Lino Lakes for the purpose of financing the construction of public
<br />facilities. Pursuant to Minnesota Statutes and a lease purchase contract between the EDA and the City of Lino
<br />Lakes, a Trust Indenture between the EDA and a regional bank has been established for the purpose of financing
<br />payment of these bonds. The City has pledged rental payments in amounts equal to the debt service
<br />requirements and plans to annually appropriate City funds available for this purpose. As required by bond
<br />covenant, a reserve account has been established with a trustee, which is to be used to pay principal and interest
<br />on the bonds in the event that other available resources are inadequate to do so.
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