Laserfiche WebLink
<br />-46- <br />NOTE 10 – COMMITMENTS AND CONTINGENCIES (CONTINUED) <br /> <br />C. Federal and State Funds <br /> <br />Amounts recorded or receivable from federal and state agencies are subject to agency audit and <br />adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the <br />applicable funds. The amount, if any, of claims which may be disallowed by the grantor agencies cannot <br />be determined at this time, although the City expects such amounts, if any, to be immaterial. <br /> <br />D. Tax Increment Districts <br /> <br />The City’s tax increment districts are subject to review by the Minnesota Office of the State Auditor . <br />Any disallowed claims or misuse of tax increments could become a liability of the applicable fund . <br />Management has indicated that they are not aware of any instances of noncomplia nce which would have <br />a material effect on the financial statements. <br /> <br />E. Lake Johanna Volunteer Fire Department, Inc. <br /> <br />The City receives fire protection under a contract with the Lake Johanna Volunteer Fire Department, Inc . <br />The current contract calls for annual payments and expires December 31, 2018. The contract cost will be <br />based on the budget submitted by the fire department and approved by the City. Capital costs are billed <br />separately in addition to the contract rate. The amount expended under the contract was $514,468 in <br />2017. <br /> <br /> <br />NOTE 11 – CONDUIT DEBT OBLIGATION <br /> <br />The City has issued private activity bonds to provide financial assistance to private sector entities for the <br />acquisition and construction of industrial and commercial facilities deemed to be in th e public interest. <br />The bonds constitute special obligations of the City, payable solely from revenues of the projects pledged <br />to the payment thereof. The bonds do not constitute a debt of the City and the City has no obligation for <br />repayment. Accordingly, the bonds are not reported as liabilities in the City’s financial statements. Bonds <br />outstanding at December 31, 2017 could not be determined; however, their original issue amounts are as <br />follows: <br /> <br />Amount <br />Bond Description Issued <br />Commercial Facilities Revenue Note, Series 2008 Office facilities 5,500,000$ <br />Senior Housing Revenue Note, Series 2011A Senior housing 10,000,000 <br />Senior Housing Revenue Note, Series 2012A Senior housing 10,000,000 <br />Senior Housing Revenue Note, Series 2015A Senior housing 10,000,000 <br />Total 35,500,000$ <br /> <br /> <br />NOTE 12 – SUBSEQUENT EVENT <br /> <br />In May 2018, the City authorized the sale of $2,680,000 General Obligation Utility Revenue Bonds, <br />Series 2018A.