3A, 2012 Proposed Preliminary Budget and Tax Levy

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_ _ _ DEBT SERVICE FUND Fund Description: The Debt Service funds repay the City's outstandiug de6t obligations. Debt service fuads use the modified accrual basis of accounfing; however, the cash basis of accaunting will be used for �udgetary purposes only. T�e cas� basis is used for budgeting to ensure that sufficient cash will be available to make the requirec� �ayments on the City's bonded indebtedz�css. Sud�et Snmmary DBBT SERVICE FEJNDS SUMMARY Functial: Debt Se�tice DepaRment: GQ Ta�c Increment Bonds oF i998A Actual Actual Butlget Amencfed Actuai Proposed Adoptetl % Change Actitit FY 2009 FY 2010 FY 2411 FY 2D11 6l301201'I FY 20i2 �Y 20i2 11 +�s 12 Ravenues Inserest fncome 4 53 - - - - - - Transte� 27&,425 281,525 284,375 26A,375 2�6,698 - D.82°6 TotalRe�enues $ 276,426 $ 281,578 $ 284,375 S 284,375 $ - $ 28G,698 $ - 4.82% Excenditures �Bond Arincipai 225.400 235,OQ0 245.000 245,000 245.000 255.000 - 4.48% Bond Interesf 52,975 46,075 38,875 38,875 38,875 3�,248 - -19.62% Fisca[ AgeMs' Fees 450 450 500 500 450 450 - -10.00°k Total Expendi(ures $ 278,425 $ 281,525 $ 284,375 � 2&9,375 $ 284,325 $ 286,698 $ - 0.82% FundBaiance-3anuaryl 2,02� 2,D21 2074 2,47A 2,474 2,074 Ezcess Re�nue O�er ExpendiYures 1 53 - (284,325) - - FundBafance-Oecember3l $ 2.021 $ 2,074 $ 2,074 $ 2,fl74 $ {292,251) $ �074 $ - The City's debt consis�s of general obligation #ax increment refnancing bonds. The City de%ased {Ca�led far rederrEption) t�►e origir�a11998 bond issue i� 2005 and issued refundi�g bonds in 2404. The City currently does �ot have auy plans ta issae additional debt. Sond Rat�n�: All bonds issaed by fhe City are assigned ratings by Maody's Investor S�rvices. The City maiutains an "AA+" rating fro�n Standard & Poor's and Fitch and an "Aa" rating fro�n Moody's Investment Services for generai ab�igation debt. Debt Li�ita#ions: All Minneso�a municipalities (counties, cities, towv�s and schoai d�s�ricts) are subject to s#atutory "net debt" limitatio�s under the provisions of Minnesata Statues, Section 475.53. Under this provision, the legal debt �imit is 3.0% of ft�e assessar's market value o� the municipalities' tax base. Bond issues covered by this limit are #hose �inanced by property taxes unless at least 20% of the auuual de6# service casts are fnanced by speciai assessme�ts ar tax increments. At prese�t the Cily has no band iss�e t�at is subject to ihe debt li�nit. The City's current legal debt liun.it and debt margin is as follows: �8