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<br />-44- <br />NOTE 10 – COMMITMENTS AND CONTINGENCIES (CONTINUED) <br /> <br />F. Construction Contract Commitments <br /> <br />At year-end, the City had the following construction project commitments: <br /> <br />Project Amount <br />Permanent Improvement Revolving Fund <br />2021 pavement management program 131,312$ <br />Sewer Fund <br />Lift station 10 rehabilitation 130,700 <br />2021 sewer lining 190,250 <br />452,262$ <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, 2021 are as follows: <br /> <br />Amount <br />Bond Description Outstanding <br />Commercial Facilities Revenue Note, Series 2008 Office facilities 2,609,066$ <br />Housing Facility Revenue Note, Series 2011A Senior housing 7,615,034 <br />Housing Facility Revenue Note, Series 2011B Senior housing 7,615,034 <br />Housing Facility Revenue Note, Series 2012A Senior housing 7,615,034 <br />Housing Facility Revenue Note, Series 2012B Senior housing 1,516,590 <br />Housing Facility Revenue Note, Series 2015 Senior housing 8,337,599 <br />Total 35,308,357$ <br /> <br />NOTE 12 – SUBSEQUENT EVENTS <br /> <br />A. New Accounting Standards <br /> <br />A new standard has been issued by the GASB that will result in significant changes in the reporting of <br />leases once it becomes effective for governmental entities. This standard will be adopted by the City <br />beginning in 2022, and will require the restatement of certain balances reported as of December 31, 2021. <br />The effects of this change have not yet been determined and are not reflected in these financial <br />statements. <br /> <br />B. COVID-19 Pandemic <br /> <br />The COVID-19 pandemic has had significant financial and operational impacts on the City for the last <br />two fiscal years. Any potential impact it may have on the City’s future operations and financial condition <br />cannot be determined at this time and has not been reflected in these financial statements.