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NOTE 7
<br />CITY OF ELK RIVER
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />DECEMBER 31, 2019
<br />LONG-TERM DEBT (CONTINUED)
<br />A. Components of Long -Term Debt (Continued)
<br />Business -Type Activities:
<br />General Obligation Revenue Bonds:
<br />G.O. Water Revenue Refunding
<br />Bonds 2008A
<br />G.O. Capital Improvement Bonds 2010A
<br />G.O. Sewer Revenue Bonds 2014B
<br />Total General Obligation Revenue Bonds
<br />Revenue Bonds
<br />Electric Revenue Bonds, Series 2016A
<br />Electric Revenue Refunding Bonds 2016B
<br />Electric Revenue Bonds, Series 2018A
<br />Total Revenue Bonds
<br />Total Bonds
<br />Unamortized Bond Premiums
<br />Notes Payable
<br />Compensated Absences
<br />Total Business -Type Activities
<br />Final
<br />Maturity
<br />Balance -
<br />Issue Date
<br />Date
<br />Original Issue
<br />Interest Rate
<br />End of Year
<br />02/20/08
<br />02/01/22
<br />$ 3,085,000
<br />2.75-3.65%
<br />$ 780,000
<br />04/21/10
<br />08/01/23
<br />1,265,000
<br />2.00-4.00%
<br />455,000
<br />08/21/14
<br />02/01/35
<br />2,620,000
<br />2.00-3.00%
<br />8,360,000
<br />9,595,000
<br />07/14/16 02/01/36 9,755,000 2.00-4.00% 9,345,000
<br />07/14/16 02/01/22 1,370,000 2.00-4.00% 705,000
<br />09/26/18 08/01/48 10,000,000 3.50-5.00% 9,775,000
<br />19,825,000
<br />29,420,000
<br />818,036
<br />619,692
<br />491,365
<br />$ 31,349,093
<br />For the governmental activities, bonds payable can be summarized in the following
<br />categories:
<br />The general obligation bonds were used to construct a recreation facility, a public
<br />safety facility, and a public works facility. The recreation facility is leased to the
<br />YMCA, which has pledged to pay one-third of the bonds outstanding. The bonds are
<br />general obligations of the City and are backed by its full faith and credit.
<br />In 2019, the City issued $32,715,000 G.O. Sales Tax Revenue Bonds, Series 2019A.
<br />The bonds are general obligations of the City for which it pledges its full faith and
<br />credit and power to levy direct general ad valorem taxes. In addition, the City will
<br />pledge a sales and use tax of 0.50% for repayment of the Bonds. The bonds bear
<br />coupon rates ranging from 2.5% to 5.0% and will be used to finance the acquisition
<br />and betterment of certain recreational facility improvements, park improvements, trail
<br />improvements, and dredging of Lake Orono.
<br />For the business -type activities, the general obligation revenue bonds were issued to
<br />finance capital improvements. The bonds are payable from future revenues pledged
<br />from the Sewer and Water funds and are backed by the full faith and credit of the
<br />City. Annual principal and interest payments on the bonds are expected to require
<br />about 28% and 13% of revenues from the Sewer and Water funds, respectively.
<br />The revenue bonds were issued to finance the acquisition and construction of major
<br />capital facilities and are to be repaid from future revenues pledged from the Electric
<br />fund. Annual principal and interest payment on the bonds required about 4% of
<br />revenues from the Electric fund.
<br />(56)
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