2014 CAFR - Laserfiche WebLink

Home Browse Search

CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 E. PAY-AS-YOU-GO TAX INCREMENT The City has two tax increment pay-as-you-go agreements. The agreements are not a general obligation of the City and are payable solely from available tax increment. Accordingly, these agreements are not reflected in the financial statements of the City. Details of the pay-as-you-go notes are as follows: TIF District #3-5, Landings at Silver Lake Village: The pay-as-you-go note provides for the payment to the developer for 90% of all tax increment received in the prior six months. The payment reimburses the developer for street, utilities, right-of- way, land acquisition, and other public improvements. Principal and interest payments will be completed February 1, 2031. TIF District #3-5, Phase II Town Homes: The pay-as-you-go note provides for the payment to the developer for 95% of all tax increment received in the prior six months. The payment reimburses the developer for streets, utilities, right- of-way, land acquisition, and other public improvements. Principal and interest payments will be completed February 1, 2031. F. ARBITRAGE The City issued greater than $5 million of bonds in the years 2006, 2007 and 2011 and, therefore; is required to rebate excess investment income relating to these issues to the federal government. The City calculates arbitrage rebate every five years as permitted by arbitrage regulations. The extent of the City's liability for arbitrage rebates for bond issues not currently requiring five year rebate calculations is not determinable at this time. However, in the opinion of management, any such liability would be immaterial. Note 12 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT General obligation bond issues sold by the City are financed by ad valorem tax levies and improvement bond issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments levied against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject to cancellation when and if the City has provided alternative sources of financing. The City Council is required to levy any additional taxes found necessary for full payment of principal and interest. These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31, 2014. 79