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IV-29CITY OF ELK RIVER NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 6 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (CONTINUED) lnterfund Transfers (Continued} Proprietary Funds: Municipal Liquor Sewer Garbage Storm Water Electric Total Fund Transfer In $ I Transfer Out $ 714,855 150,000 48,000 15,000 1,157,445 $ 2,085,300 lnterfund transfers are used to provide additional capital funding or to move revenues from the fund with collection authorization to debt service funds as principal and interest payments come due. In addition, interfund transfers are occasionally authorized to allow redistribution of resources between funds for the most efficient use of funds. NOTE 7 LONG-TERM DEBT A. Components of Long-Term Debt The City had the following long-term liabilities outstanding at December 31, 2019: PRIMARY GOVERNMENT Governmental Activitiee: General Obfigation Bonda Payable: G.O. Capital Improvement Bonds 2010A G.O. Capita! Improvement Bonds 2012A EDAG.O. Refunding Bonds2013A G.O. Sales Tax Revenue Bonds, Series2019A Total General Obligation Bonds Unamortized Bond Premiums Compensated Absenoas Total Governmental Activitiee Final M ... rity ~____E!!!_ 04/21/10 02/01/23 03/15112 02/01/33 02/12/13 02/01/33 09/19119 12/01/44 Original lsaue ~ $ 6,105,000 2.Q0..4.00% 6,975,000 1.00-2.50% 9,685,000 2.Q0-3.00% 32,715,000 2.50-6.00% $ $ Balance-EndofYear 2,140,000 5,160,000 6,666,000 32,715,000 48,680,000 3,511,113 1,607,604 53~798,717 CITY OF ELK RIVER NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2019 NOTE 7 LONG-TERM DEBT (CONTINUED) A. Components of Long-Term Debt (Continued) Final Maturity ~____E!!!_ ~ lntereetRate Business-Type Activities: General Obligation Ravanue Bonda: G.0. Water Revenue Refunding Bands2006A G.O. Capital Improvement: Bonds 2010A G.O. Sawer Revenue Bonda 20148 Total General Obligation Revenue Banda Revenue Bonda Electric Revenue Bonde, Series 2016A Electric Revenue Refunding Bonds 20168 Electric Revenue Bonda, Series 2018A Total Revenue Bonds Total Bonds Unamortized Bond Premiums Notes Payable Compensated Absences Total Buainese-Type Activitiee 02/20/06 02/01122 $ 3,085,000 2.75-3.65% 04/21/10 06/01123 1,285,000 2.00-4.00% 08/21/14 02/01135 2,620,000 2.00-3.00% 07/14116 02/01136 9,755,000 2.Q0..4.00% 07/14116 02/01122 1,370,000 2.Q0..4.00% 09/26/18 06/01148 10,000,000 3.50-6.00% $ $ Balance-End of Year 760,000 455,000 8,360,000 9,595,000 9,345,000 705,000 e,ns,ooo ~ 29,420,000 816,036 619,692 491,365 31,349,093 For the governmental activities, bonds payable can be summarized in the following categories: The general obligation bonds were used to construct a recreation facility, a public safety facility, and a public works facility. The recreation facility is leased to the YMCA, which has pledged to pay one-third of the bonds outstanding. The bonds are general obligations of the City and are backed by its full faith and credit. In 2019, the City issued $32,715,000 G.O. Sales Tax Revenue Bonds, Series 2019A. The bonds are general obligations of the City for which it pledges its full faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge a sales and use tax of 0.50% for repayment of the Bonds. The bonds bear coupon rates ranging from 2.5% to 5.0% and will be used to finance the acquisition and betterment of certain recreational facility improvements, park improvements, trail improvements, and dredging of Lake Orono. 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 28% and 13% of revenues from the Sewer and Water funds, 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 4% of revenues from the Electric fund. 177
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