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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 3I, 2013 <br />Note 4 CITY INDEBTEDNESS (CONTINUED) <br />The following is a schedule of changes in City indebtedness for the year ended December 31, 2013: <br />Payable Payable Due Within <br />12/31/2012 Issues Payments 12/3I'2013 One Year <br />Govemmental activities: <br />Bonded debt: <br />General Obligation $ 10,646,000 $ 193.000 5 974,000 $ 9.865,000 $ 1,129.000 <br />Special Assessment 6,780,000 615.000 1,675.000 5.720,000 920.000 <br />Unamonized Bond Discounts (25,152) - (2,469) 122.683) <br />Unamonized Bond Premiums 67,373 6,558 23.096 50.835 <br />Note Payable - Anoka County 3.695,000 - - 3,695,000 995.000 <br />Compensated Absences Payable 634,572 528,925 548,961 614.536 382,332 <br />Other Post Employment Benefit Plan 77.821 6.148 - 83,969 - <br />Total Govemmental Activities 21.875,614 1.349.631 3.218,588 20,006.657 3.426,332 <br />Business -Type Activities: <br />Compensated Absences Payable 43.410 43.197 32,425 54,182 34.824 <br />Total $ 21,919.024 $ 1,392,828 $ 3,251,013 $ 20.060,839 $ 3,461.156 <br />All long-term bonded indebtedness outstanding at December 31, 2013 is backed by the full faith and credit of the <br />City, including special assessment bond issues. <br />Minimum annual principal and interest payments required to retire long-term debt, not including compensated <br />absences payable are as follows. <br />Years Ending December 31 <br />2014 <br />2015 <br />2016 <br />2017 <br />2018 <br />2019-2023 <br />2024-2026 <br />Total <br />Bonded Debt <br />Notes Payable Total <br />Principal Interest Principal Interest Principal Interest <br />$ 2.049,001 S 552,473 S 995,000 $ 114.951 S 3,0144,00 $ 667.424 <br />2231,0(0 467,294 360.000 100,345 2,591.000 567,639 <br />1,850.000 392.528 375.000 91045 2,225,000 483,473 <br />1.875.000 324.288 3901,000 80.945 2_65,000 405.233 <br />1,660,000 258.245 405,000 70,345 2,05,00) 328.590 <br />5.410.000 547,878 1,170,000 154,314 6,580,000 702.192 <br />510,000 8,436 - - 510.0001 8.436 <br />5 15.585,000 S 2,551.141 5 3.695000 $ 611.045 S 19.280,000 $ 3.16. 986 <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 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 />CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2013 <br />Note 4 CITY INDEBTEDNESS (CONTINUED) <br />Description and Restrictions of Long -Term Debt (Continued) <br />Revenue Bonds — These bonds were issued to finance various improvements in the water fund and will be repaid <br />primarily from pledged revenues derived from the constructed assets. <br />h1 July 2013, the City issued General Obligation Improvement Bonds of $615,000 to fund the Otter Lake Extension <br />project. The 5615,000 is being funded by special assessments related to the improvement project that the City has <br />collected. The bond was issued at a rate of 1.25% . The bonds will be called in 2024. <br />Liability for Compensated Absences — This liability represents vested benefits earned by governmental fund <br />employees through the end of the year which will be paid or used in future periods. For the governmental activities, <br />compensated absences and other postemployment benefit liability are generally liquidated by the general fund. The <br />liability for Proprietary Fund employees is included in the accrued liabilities of those funds. <br />Note S LEGAL DEBT MARGIN <br />The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable principally <br />from property taxes. The City of Lino Lakes' legal debt margin for 2013 is computed as follows: <br />Market value <br />Applicable percentage <br />Debt Limit <br />Amount of debt applicable to debt limit: <br />Total bonded debt <br />Less: Special assessment bonds <br />Tax abatement bonds <br />Utility revenue bonds <br />Tax increment financing bonds <br />Total debt applicable to debt limit <br />Legal debt margin <br />12/31/2013 <br />$ 1,519,857,242 <br />3.0% <br />45,595,717 <br />15,585,000 <br />(5,720,000) <br />(2,220,000) <br />(255,000) <br />(3,110,000) <br />4,280,000 <br />S 41,315,717 <br />