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CITY OF ST. ANTHONY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 ADVANCE CROSSOVER REFUNDINGS On July 24, 2014, the City issued $1,305,000 in General Obligation Refunding Bonds, Series 2014C with an average interest rate of 2.10% to advance refund $1,275,000 of outstanding 2008A Series Bonds with an average interest rate of 3.83% The net proceeds of $1,326,127 were used to purchase U.S. Government Securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for the interest on the refunding bonds before the crossover date and called principal on the refunded bonds on February 1, 2015. The City advance refunded the 2008A General Obligation Street Reconstruction Bonds to reduce its total debt service payments over the last ten years of the bond by $81,373 and to obtain an economic gain (difference between the present value of the debt service payments on the old and new debt) of $68,536. ADVANCE REFUNDINGS On December 29, 2015, the City issued $4,310,000 in General Obligation Tax Increment Refunding Bonds, Series 2015B with an average interest rate of 2.57% to advance refund $4,120,000 of outstanding 2006 Series Bonds with an average interest rate of 5.60%. The net proceeds of $4,332,935 were used to purchase U.S. Government Securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for the payment of the principal and interest. The City advance refunded the 2006 Tax Increment Revenue Bonds to reduce its total debt service payments over the last sixteen years of the bond by $1,066,627 and to obtain an economic gain (difference between the present value of the debt service payments on the old and new debt) of $915,506. The amount of bonds defeased at December 31, 2015 was $4,120,000. Note 7 DEFINED BENEFIT PENSION A. COST SHARING MULTIPLE – EMPLOYER PLANS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Pensions. For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA except PERA’s fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 65