|
CITY OF ST. ANTHONY, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2014
<br />ADVANCE CROSSOVER REFUNDINGS
<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 />On July 24, 2014, the City issued $1,305,000 in General Obligation Refunding Bonds, Series 2014C with
<br />an average interest rate of 2.10% to advance refund $1,275,000 of outstanding 2008A Series Bonds with
<br />an average interest rate of 3.83% The net proceeds of $1,326,127 were used to purchase U.S. Government
<br />Securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for the
<br />interest on the refunding bonds before the crossover date and called principal on the refunded bonds on
<br />February 1, 2015.
<br />The City advance refunded the 2008A General Obligation Street Reconstruction Bonds to reduce its total
<br />debt service payments over the last ten years of the bond by $81,373 and to obtain an economic gain
<br />(difference between the present value of the debt service payments on the old and new debt) of $68,536.
<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 $1,290,049 at
<br />December 31, 2014.
<br />Refunded
<br />Payment Bonds Refunding
<br />Date Total Bonds
<br />Debt Service Commitment
<br />Escrow Account City
<br />2015
<br />$1,417,513 $30,201
<br />$1,290,389 $157,326
<br />2016
<br />- 163,275
<br />- 163,275
<br />2017
<br />- 160,575
<br />- 160,575
<br />2018
<br />- 162,825
<br />- 162,825
<br />2019
<br />- 160,025
<br />- 160,025
<br />2020
<br />- 162,175
<br />- 162,175
<br />2021
<br />- 159,275
<br />- 159,275
<br />2022
<br />- 161,138
<br />- 161,138
<br />2023
<br />- 162,125
<br />- 162,125
<br />2024
<br />- 162,400
<br />- 162,400
<br />Total
<br />$1,417,513 $1,484,014
<br />$1,290,389 $1,611,139
<br />67
<br />
|