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 4: OTHER INFORMATION—CONTINUED G. Conduit Debt Obligations From time to time,the City has issued revenue bonds to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial,multi-family and educational facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payment received from the benefited entity. Neither the City,the State,nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly,the bonds are not reported as liabilities in the accompanying financial statements. As of December 31,2013,there were five series of revenue bonds outstanding,with an aggregate principal payable amount of$13,948,532. H. Commitments The City has received notice from their power supplier regarding the existing all requirements power contract exercising their right to give ten years notice to cancel the contract. The cancellation date would be effective September 30,2018. On May 14,2013 the City signed a new agreement with Minnesota Municipal Power Agency(MMPA), In 2007 the City entered into an agreement with Central Minnesota Municipal Power Agency(CMMPA)to acquire an interest in the CAPX Initiative Brookings Project,a 250 mile new power transmission line between Brookings, South Dakota,and the Twin Cities. In 2011 there was increased opportunity for investment,and subsequent agreements provide an ownership share of$5.6 million or 18.9%. The return on this investment through CMMPA is designed to provide approximately$124,000 annually over the 40 year project life. I. Subsequent Events The City will redeem the$560,000 outstanding principal of the U.U. Sewer Revenue Refunding Bond, Series 2005B on February 1,2014. As a result of the early redemption of the bonds,the City will save$22,769 in debt service payments. On February 12,2014,the City issued$2,030,000 of Electric Revenue Refunding Bonds, Series 2014A to provide resources for the crossover refunding of$2,180,000 of the outstanding principal of the Electric Revenue Bonds,Series 2006A on August 1,2014. It is anticipated that the refunded maturities will be called and prepaid at a price of par plus accrued interest on May 1,2014,which is within 90 days of settlement of the bonds. 62