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<br />-13-
<br />Long-Term Liabilities – At the end of the current fiscal year, the City had total bonded debt outstanding
<br />of $2,415,000, which is secured by specified revenue sources.
<br />
<br />2019 2018 2019 2018 2019 2018
<br />Utility revenue bonds –$ –$ 2,415,000$ 2,415,000$ 2,415,000$ 2,415,000$
<br />Premium – – 141,394 156,952 141,394 156,952
<br />Compensated absences 86,680 78,302 51,988 46,744 138,668 125,046
<br />Net pension liability 709,184 813,204 496,090 396,171 1,205,274 1,209,375
<br />Total 795,864$ 891,506$ 3,104,472$ 3,014,867$ 3,900,336$ 3,906,373$
<br />Table 4
<br />Outstanding Debt
<br />Summary of Long-Term Debt
<br />Total
<br />Governmental Business-Type
<br />Activities Activities
<br />
<br />
<br />State statutes limit the amount of net debt a Minnesota city may issue to 3 percent of total estimated
<br />market value.
<br />
<br />The net pension liability decreased slightly from the prior year for the change in the City’s proportionate
<br />share of pension obligations for the Public Employees Retirement Association – General Employees
<br />Retirement Fund state-wide pension plan.
<br />
<br />Additional information on the City’s long-term liabilities can be found in Note 4 of the notes to basic
<br />financial statements.
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<br />ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
<br />
<br />• Dramatic increases in local government aids and other state sources are not anticipated based on
<br />legislation at the time of writing this report.
<br />
<br />• Property tax collection rates are expected to remain strong, at or near the 2019 level.
<br />
<br />• Shortly after the end of the 2019 fiscal year, the onset of the novel coronavirus (COVID-19)
<br />pandemic caused substantial volatility in economic conditions and tremendous disruption in the
<br />way governments, businesses, and individuals function. The extent of the negative impact on the
<br />economy and city operations is unknown at this time.
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<br />REQUESTS FOR INFORMATION
<br />
<br />This CAFR is designed to provide a general overview of the City’s finances for all those with an interest
<br />in the City’s finances. Questions concerning any of the information provided in this report or requests for
<br />additional financial information should be addressed to the finance department, 1245 West Highway 96,
<br />Arden Hills, Minnesota 55112.
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