6.2. SR 06-02-2014 - Laserfiche WebLink

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CITY OF ELK RIVER,MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2013 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$10,645,000 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. 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 12 and 27 percent of revenues from the Sewer and Water funds,respectively. For 2013,principal and interest paid and total operating revenues for the Sewer fund were$200,293 and$1,613,276,respectively. For 2013,principal and interest paid and total operating revenues for the Water fund were$612,248 and$2,278,124,respectively. The revenue bonds were issued to finance the acquisition and construction of major capital facilities and are to be repaid from future revenues pledged from the Electric fund. Annual principal and interest payment on the bonds required about 3 percent of revenues from the Electric fund. For 2013,principal and interest paid and total customer revenues for the Electric fund were$1,033,878 and$30,846,379,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 February 12,2013 the EDA issued$9,685,000 G.O.Refunding Bonds, Series 2013A. The bonds bear an average coupon rate of 2.2 percent and will be used to call$9,225,000 of the outstanding principal of the EDA G.O.Bonds, Series 2007D on February 1,2017. As a result of the refunding issue,the EDA will save$1,001,112 in debt service payments and achieve an economic gain(the present value of the difference between the old and the new debt service)of $795,866. 53