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CITY OF ST. ANTHONY, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2013
<br />ADVANCE CROSSOVER REFUNDING
<br />On April 25, 2012, the City issued $1,410,000 in General Obligation Bonds, Series 2012A with an average
<br />interest rate of 2.05% to advance refund $1,380,000 of outstanding 2007A Series Bonds with an average
<br />interest rate of 4.40%. The net proceeds of $1,423,370 were used to purchase U.S. Government Securities.
<br />Those securities were deposited in an irrevocable trust with an escrow agent to provide for the interest on
<br />the refunding bonds before the crossover date and called principal on the refunded bonds on February 1,
<br />2014.
<br />The City advance refunded the 2007A General Obligation Improvement Bonds to reduce its total debt
<br />service payments over the last nine years of the bond by $110,499 and to obtain an economic gain
<br />(difference between the present value of the debt service payments on the old and new debt) of $98,253.
<br />The City is responsible for the debt service of the refunded bonds before the crossover date and the debt
<br />service of the refunding bonds after the crossover date. The debt service of the refunding bonds before the
<br />crossover date is payable from the escrow account. Assets held with the escrow agent total $1,392,296 at
<br />December 31, 2013.
<br />Payment
<br />Date
<br />2014
<br />2015
<br />2016
<br />2017
<br />2018
<br />2019
<br />2020
<br />2021
<br />2022
<br />2023
<br />Refunded
<br />Bonds
<br />Total
<br />Refunding Debt Service Commitment
<br />Bonds Escrow Account City
<br />$1,529,010 $28,625
<br />- 172,175
<br />- 169,275
<br />- 171,325
<br />- 168,325
<br />- 170,275
<br />- 172,125
<br />- 173,875
<br />- 175,483
<br />171,870
<br />$1,394,313 $163,322
<br />- 172,175
<br />- 169,275
<br />- 171,325
<br />- 168,325
<br />- 170,275
<br />- 172,125
<br />- 173,875
<br />- 175,483
<br />171,870
<br />Total $1,529,010 $1,573,353 $1,394,313 $1,708,050
<br />CURRENT REFUNDING
<br />On January 8, 2013, the City issued the $1,440,000 General Obligation Water and Sewer Refunding
<br />Bonds, Series 2013A with an average interest rate of 1.52% to refund the 2014 through 2024 maturities
<br />aggregating $1,450,000 in principal amount of the City's $2,200,000 General Obligation Water and Sewer
<br />Revenue Bonds, Series 2003B with an average interest rate of 4.1655%, dated April 16, 2003. Net
<br />proceeds of $1,453,524 were used to retire all outstanding principal of the refunded bonds on January 8,
<br />2013.
<br />The City refunded the bonds to reduce its total debt service payments over the eleven years by $236,983
<br />and to obtain an economic gain (difference between the present value of the debt service payments on the
<br />old and new debt) of $217,167.
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