6.1. SR 06-03-2013 - Laserfiche WebLink

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CITY OF ELK RIVER,MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2012 Note 3: DETAILED NOTES ON ALL FUNDS—CONTINUED For the governmental activities,bonds payable can be summarized in the following categories: The general obligation bonds were used to construct a library,a recreation facility,a public safety facility,a public works facility and finance a street improvement project. The recreation facility is leased to the YMCA,which has pledged to pay one-third of the$10,945,000 bonds outstanding. The bonds are general obligations of the City and are backed by its full faith and credit. The special assessment bonds are used to finance assessable improvements within the City. The bonds are payable primarily from special assessments levied against properties benefited by the improvements. In addition,the bonds are general obligations of the City and are backed by its full faith and credit. The tax increment bonds were used to finance land acquisition and other public costs to facilitate development within the tax increment district. The bonds are payable from tax increment revenues generated by existing and new development within the district. In addition,the bonds are general obligations of the City and are backed by its full faith and credit. For the governmental activities,the City also entered into a contract for deed to finance the acquisition of park property. Compensated absences and other postemployment benefits are generally liquidated through the General fund. For the business-type activities,the general obligation revenue bonds were issued to finance capital improvements. The bonds are payable from future revenues pledged from the Sewer and Water funds and are backed by the full faith and credit of the City. Annual principal and interest payments on the bonds are expected to require about 13 and 27 percent of revenues from the Sewer and Water funds,respectively. For 2012,principal and interest paid and total customer revenues for the Sewer fund were$201,440 and$1,533,851,respectively. For 2012,principal and interest paid and total customer revenues for the Water fund were$601,492 and$2,265,142,respectively. The revenue bonds were issued to finance the acquisition and construction of major capital facilities. They are repaid from future revenues pledged from the Municipal Liquor and Electric fund. Annual principal and interest payment on the bonds required about 40 and 3 percent of revenues from the Municipal Liquor and Electric funds,respectively. For 2012,principal and interest paid and total customer revenues for the Municipal Liquor fund were$757,113 and $1,886,684,respectively. For 2012,principal and interest paid and total customer revenues for the Electric fund were $800,275 and$30,258,690,respectively. The City also issued a promissory note to provide for the construction of a landfill gas generator. The note is to be paid from revenue of the system and is secured by the facility. On March 15,2012,the City issued$1,525,000 General Obligation Improvement Refunding Bonds, Series 2012B. The 2012B bonds were issued to redeem the 2014 through 2018 maturities of the$3,090,000 General Obligation Improvement Bonds, Series 2007C. The bonds were issued in advance of the call date and placed in an escrow account which will be used to pay interest on the Series 2012B bonds through February 1,2013 and to pay the callable principal on the Series 2007C bonds on February 1,2013. The City will continue to pay principal and interest on the Series 2007C bonds until the call date. The new refunding bonds have an average coupon rate of 2 percent and will mature on February 1,2018. The net cash flow savings is calculated at$113,565. 53 I