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Long -Term Liabilities — At the end of the current fiscal year, the City had total bonded debt outstanding
<br />of $1,560,000, which is secured by specified revenue sources.
<br />Table 4
<br />Outstanding Debt
<br />Summary of Long -Term Debt
<br />Governmental Business -Type
<br />Activities Activities Total
<br />2023 2022 2023 2022 2023 2022
<br />Utility revenue bonds
<br />$ — $ — $ 1,560,000
<br />$ 1,785,000
<br />$ 1,560,000
<br />$ 1,785,000
<br />Premium
<br />79,168
<br />94,724
<br />79,168
<br />94,724
<br />Compensated absences
<br />105,483 98,255 64,143
<br />77,404
<br />169,626
<br />175,659
<br />Net pension liability
<br />798,005 1,044,294 611,151
<br />801,074
<br />1,409,156
<br />1,845,368
<br />Total $ 903,488 $ 1,142,549 $ 2,314,462 $ 2,758,202 $ 3,217,950 $ 3,900,751
<br />State statutes limit the amount of net debt a Minnesota city may issue to 3 percent of total estimated
<br />market value.
<br />Outstanding debt for utility revenue bonds was anticipated with scheduled bond payments as approved at
<br />the time of originally issuing these obligations.
<br />The decrease in the net pension liability, compared to the prior year, was due to the change in the City's
<br />proportionate share of pension obligations for the Public Employees Retirement Association — General
<br />Employees Retirement Fund state-wide pension plan.
<br />Additional information on the City's long-term liabilities can be found in Note 5 of the notes to basic
<br />financial statements.
<br />ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
<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 />• Property tax collection rates are expected to remain strong, at or near the 2023 level.
<br />• The 2024 budget approved for the General Fund anticipates expenditures and other financing uses
<br />to exceed revenues and other financing sources by $182,070, which is included in assigned fund
<br />balance at December 31, 2023.
<br />• All of these factors were considered in preparing the City's budget for the 2024 fiscal year.
<br />REQUESTS FOR INFORMATION
<br />This ACFR 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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