05-26-2015 Council Packet - Laserfiche WebLink

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CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 4 CITY INDEBTEDNESS (CONTINUED) Description and Restrictions of Long -Term Debt (Continued) Revenue Bonds — These bonds were issued to finance various improvements in the water fund and will be repaid primarily from pledged revenues derived from the constructed assets. In November 2014, the City issued General Obligation Bonds of $2,645,000 to fund various street and utility improvements within the City and improvements to the City's water system, including construction of a new well and well house. Approximately $1,510,000 of special assessments are expected to be filed related to the improvement portion of the bond. Net revenues of the City's water utility will repay the additional bond indebtedness. The bond was issued at a rate of 0.40%. The bonds will mature in 2026. Liability for Compensated Absences — This liability represents vested benefits earned by governmental fund employees through the end of the year which will be paid or used in future periods. For the governmental activities, compensated absences and other postemployment benefit liability are generally liquidated by the general fund. The liability for Proprietary Fund employees is included in the accrued liabilities of those funds. Note 5 LEGAL DEBT MARGIN;„a. The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable principally from property taxes. The City of Lino Lakes' legal debt margin for 2014 is computed as follows: 4 12/31/2014 Market Value $ 1,509,921,169 Applicable Percentage a a' Debt Limit��h Amount of Debt Applicable to Debt Lirni' Total Bonded Debt Less: Special Assessment Bonds Tax Abatement Bonds Utility Revenue Bonds Tax Increment Financing Bonds Total Debt Applicable to Debt Limit Legal Debt Margin 50 3.0% 45,297,635 16,676,000 (7,445,000) (2,080,000) (195,000) (2,765,000) 4,191,000 $ 41,106,635