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<br />Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of$35,273,735, a
<br />decrease of $3,753,317 from 2003. Of the total outstanding, $12,900,000 general obligation revenue bonds were used to
<br />finance the construction of an ice arena, a liquor store, and sewer, water and electric systems. $9,285,000 lease revenue
<br />bonds were used to finance the construction of a public safety/city hall facility. $6,460,000 special assessment bonds
<br />financed improvement projects within the City and are assessed to the benefiting properties. $1,020,000 permanent
<br />improvement revolving bonds financed improvement projects within the City and are assessed to the benefiting properties.
<br />$1,116,000 tax increment bonds financed the City's economic development program. $1,080,967 certificates of
<br />indebtedness financed capital equipment purchases.
<br />
<br /> City of Elk River Outstanding Debt
<br /> Governmental Business-type
<br /> Activities Activities Total
<br /> 2004 2003 2004 2003 2004 2003
<br />Bonds payable:
<br />General obligation
<br />revenue bonds $ 1,850,000 $ 2,045,000 $ 11,050,000 $ 12,430,000 $ 12,900,000 $ 14,475,000
<br />Lease revenue bonds 9,285,000 9,765,000 9,285,000 9,765,000
<br />Special assessment bonds 6,460,000 7,520,000 6,460,000 7,520,000
<br />Permanent improvement
<br />revolving bonds 1,020,000 1,305,000 1,020,000 1,305,000
<br />Tax increment bonds 1,116,000 1,352,500 1,116,000 1,352,500
<br />Certificates of indebtedness 705.967 612.950 375.000 500.000 1.080.967 1.112.950
<br />Total bonds payable 20,436,967 22,600,450 11,425,000 12,930,000 31,861,967 35,530,450
<br />Contract for deed 47,976 47,976
<br />Promissory note 2,663,145 2,775,424 2,663,145 2,775,424
<br />Compensated absences 465.634 420.227 282.989 252.975 748.623 673.202
<br />Total $ 20 902 601 $ 23068653 $ ]437] 134 $ ]5958399 $ 35 273 735 $ 39 027 052
<br />
<br />The City maintained an A2 rating from Moody's for general obligation debt.
<br />
<br />State statutes limit the amount of general obligation debt a Minnesota city may issue to 2% of total Estimated Taxable
<br />Market Value. The current debt limitation for the City of Elk River is $26,212,519. $9,135,819 of the City's net
<br />outstanding debt is counted within the statutory limitation.
<br />
<br />Additional information on the City of Elk River's long-term debt can be found in Note 3E on pages 44 - 48 of this report.
<br />
<br />Economic Factors and Next Year's Budget
<br />
<br />The City of Elk River estimates that the demand for city services will continue to grow at a level similar to last year due to
<br />population growth. This was taken into consideration in preparation of the City's 2005 budget. The property tax levy is set
<br />annually and is adjusted as necessary to fund the additional cost of providing services related to the City's growth and the
<br />addition of new programs. Charges for services are evaluated each year and adjusted if warranted. The City expects to
<br />keep the tax rate consistent in upcoming years.
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<br />Requests for Information
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<br />This financial report is designed to provide a general overview of the City of Elk River's fmances for all those with an I
<br />interest in the City's finances. Questions concerning any of the information provided in this report or requests for
<br />additional fmancial information should be addressed to City of Elk River, Attn: Finance Director, 13065 Orono Pkwy, Elk
<br />River, Minnesota 55330 or by calling (763) 635-1000. I
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