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<br />-45- <br />NOTE 10 – COMMITMENTS AND CONTINGENCIES (CONTINUED) <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 contract calls for annual payments and expires December 31, 2023, with an extension option through <br />December 31, 2038. The contract cost will be based on the budget submitted by the fire department and <br />approved by the City. Capital costs are billed separately in addition to the contract rate. The amount <br />expended under the contract was $620,986 in 2020. <br /> <br />F. Construction Contract Commitments <br /> <br />At year-end, the City had the following construction project commitments: <br /> <br />Project Amount <br />Nonmajor Fund – Equipment, Building, and <br /> Replacement Fund <br />City Hall HVAC project 254,360$ <br />Water Fund <br />Highway 10 water main 5,514 <br />Sewer Fund <br />Lift station 6 rehabilitation 7,613 <br />267,487$ <br /> G. COVID-19 Pandemic <br /> <br />The COVID-19 pandemic has caused economic and financial market volatility in the United States and <br />around the world, along with significant business and operational disruptions for many organizations. Due <br />to the unknown breadth and duration of this pandemic, any potential impact it may have on the City’s <br />future operations and financial condition cannot be determined at this time, and has not been reflected in <br />these financial statements. <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 the 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, 2020 are as follows: <br /> <br />Amount <br />Bond Description Outstanding <br />Commercial Facilities Revenue Note, Series 2008 Office facilities 2,912,421$ <br />Housing Facility Revenue Note, Series 2011A Senior housing 7,942,494 <br />Housing Facility Revenue Note, Series 2011B Senior housing 7,942,494 <br />Housing Facility Revenue Note, Series 2012A Senior housing 7,942,494 <br />Housing Facility Revenue Note, Series 2012B Senior housing 1,582,305 <br />Housing Facility Revenue Note, Series 2015 Senior housing 8,668,651 <br />Total 36,990,859$ <br />