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- Honorable Mayor and Members of the City Council
<br />City of Lino Lakes
<br />Page 15
<br />DEBT SERVICE FUNDS
<br />The combining financial statements for the debt service funds are presented in Statements 11 and 12
<br />of the 1999 Annual Financial Report. Debt service funds are a type of governmental fund used to
<br />account for the accumulation of resources for the payment of principal and interest on general
<br />obligation debt (other than enterprise fund debt). Debt service funds may have one or a combination of
<br />revenue sources pledged to retire debt including property taxes, tax increments, special assessments
<br />- and area and unit charges.
<br />The diverse nature of the type of debt included in the same fund type requires careful analysis to
<br />determine the adequacy of the fund balance and projected fund balance. The following schedule
<br />extracts information from Exhibits 1, 2 and 3 of the 1999 Annual Financial Report to assist in this
<br />analysis. The following schedule compares outstanding debt with assets pledged for debt retirement.
<br />This comparison provides a means to judge (at least on a preliminary basis) the financial position of
<br />each individual debt service fund.
<br />_ December31, 1999 Remaining Scheduled Final
<br />Fund Deferred Debt Service Property Maturity
<br />Fund Description Balance Revenue Total Scheduled Taxes Date
<br />General Debt:
<br />— Certificates of Indebtedness $ 34,293 $ 1,596 $ 35,889 $ 650,170 $ 672,214 12/31/01
<br />Lease Revenue Bonds of 1998 630,293 1,089 631,382 8,704,423 7,865,410 02/01/10
<br />99C Public Project Revenue Bonds (6,234) - (6,234) 1,256,397 2,179,292 02/01/10
<br />658,352 2,685 661,037 10,610,990 10,716,916
<br />Special Assessment Debt:
<br />Improvement Bonds of 1992A 56,864 44,749 101,613 2,451,748 2,153,602 02/01/06
<br />— Improvement Bonds of 1996A 956,768 707,158 1,663,926 4,428,180 - 02/01/07
<br />Improvement Bonds of 1998A 80,251 107,978 188,229 6,010,700 02/01/15
<br />Improvement Bonds of 1998B 119,488 491,539 611,027 2,854,869 2,313,216 02/01/15
<br />Refunding Imp. Bonds of 1999A 1,711,397 - 1,711,397 2,075,513 902,160 02/01/06
<br />2,924,768 1,351,424 4,276,192 17,821,010 5,368,978
<br />Note: Deferred revenue in the above table does not include the future scheduled "interest portion" of
<br />the adopted assessment rolls. The 1992A and 1996A Improvement Bonds also include a pledge from
<br />the Area and Unit Fund that has not been included above.
<br />The above table provides a means for the monitoring the status of the debt service funds. For the
<br />General Debt funded solely by property taxes, it appears that there are adequate planned levies to
<br />retire the debt when the future lease revenues scheduled to be received from the school district are
<br />included.
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