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CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 Business -Type Activities Enterprise Funds: Reserved for debt service Designated for capital replacement Designated for interfund loan Total reserves and designations of enterprise fund net assets Note 12 POST EMPLOYMENT BENEFITS December 31, 2008 2007 $120,000 $120,000 - 158,752 219,000 255,000 $339,000 $533,752 The City provides the ability for retired employees to maintain insurance coverage with the City until age 65. The retired employee is responsible for 100% of the cost. Note 13 CONDUIT DEBT OBLIGATION From time to time, the City has issued Multi -family Housing Revenue Bonds to provide financial assistance to private -sector entities for the acquisition and construction of rental housing deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private -sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2008, there were six series of Multi -family Housing Revenue Bonds outstanding. The aggregate issued amount was $54,735,000, including two 1996 issues totaling $7,200,000, a 2002 issue of $7,775,000 and three 2004 issues of $39,760,000. The balance outstanding at December 31, 2008 is unavailable. Note 14 PUBLIC FACILITIES LEASE In 2003 the City, via the Housing and Redevelopment Authority (HRA), issued $5,530,000 of Public Facilities Lease Revenue Bonds. Proceeds from these bonds were utilized to finance the renovation of public works facilities and construction of a new fire station/hall. Bond proceeds were placed into an escrow account. The City received reimbursement from the trustee as costs are incurred by the City. To assist in financing the project the City transferred $157,000 from its Water and Sewer Fund in 2003. In connection with this bond issue, the City entered into a lease agreement with the HRA for the use of these facilities. Terms of the lease require the City to pay rents annually in amounts to satisfy the debt service requirements related to the bond issued by the HRA. In addition, the City advanced $437,360 to the bond trustee to initially fund the bond reserve requirements of the agreement. 76