7.5. SR 06-04-2007 - Laserfiche WebLink

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Long-term debt . At the end of the current fiscal year, the City had total long-term debt outstanding of $37,125,537, an increase of $698,310 from 2005. General obligation capital improvement bonds ($3,220,000) were issued to finance the construction of a library. General obligation revenue bonds ($15,630,000) were used to finance the construction of an ice arena, a liquor store, and sewer, water and electric systems. Lease revenue bonds ($8,265,000) were used to finance the construction of a public safety/city hall facility. Special assessment bonds ($2,130,000) financed improvement projects within the City and are assessed to the benefiting properties. Tax increment bonds ($827,500) financed the City’s economic development program. Certificates of indebtedness ($1,259,334) financed capital equipment purchases. Additional long-term debt in the amount of $1,908,725 is for capital leases, $3,066,820 is for notes payable and $818,158 is for compensated absences. The City maintains a bond rating of A1 from Moody’s for general obligation debt. State statutes limit the amount of general obligation debt a Minnesota city may issue to 2% of total Estimated Taxable Market Value. The current debt limitation for the City of Elk River is $35,728,238. Only $12,121,019 of the City’s net outstanding debt is counted within the statutory limitation. Additional information on the City of Elk River’s long-term debt can be found in Note 3F on pages 49 - 53 of this report. Economic Factors and Next Year’s Budget 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 population growth. This was taken into consideration in preparation of the City’s 2007 budget. The property tax levy is set annually and is adjusted as necessary to fund the additional cost of providing services related to the City’s growth and the addition of new programs. Charges for services are evaluated each year and adjusted if warranted. The City expects to keep the tax rate consistent in upcoming years. Requests for Information This financial report is designed to provide a general overview of the City of Elk River’s finances for all those with an interest in the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to City of Elk River, Attn: Finance Director, 13065 Orono Pkwy, Elk River, Minnesota 55330 or by calling (763) 635-1000. 18