CCP 05-27-1997 - Laserfiche WebLink

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---------- I CITY OF ARDEN HILLS, MINNESOTA .1 NOTES TO FINANCIAL STATEMENTS I DECEMBER 31, 1996 Note 5: OTHER INFORMATION - CONTINUED I D. Water Tower Funding As of December 31, 1989, the City had incurred expenditures of approximately $843,000 to build a water tower. I Also, in 1993 the City incurred additional expenditures of $300,775 for the repair of another water tower. Interim fmancing was provided by the Permanent Improvement Revolving Capital Projects Fund (PIR) for both projects. It is the intention of the City to provide permanent fmancing for these projects from the Water Enterprise Fund. To date, $910,306 has been transferred to the PIR from the Water Fund. I E. Legal Debt Margin The City's statutory debt limit is computed as two percent of the taxable market value of property within the I City. Long-term debt issued and financed partially or entirely by special assessments or the net revenues of enterprise fund operations is excluded from the debt limit computation. There is no outstanding debt at year end which is applied against the statutory debt limit. I Note 6: ADVANCE REFUNDING BOND ISSUE - PRIOR YEARS In 1985, the City issued general obligation refunding bonds in the amount of$2,320,000 to advance refund the I outstanding balance of the 1977 general obligation improvement bonds. The proceeds of the refunding issue were placed in an irrevocable escrow account and have been invested in U.S. Government securities. The maturities of these investments will be sufficient to pay all principal and interest on the refunded bonds as they are due. Accordingly, the refunded bonds have been removed and the advance refunding bonds were paidin full at -, December 31, 1992. The City remains contingently liable in the remote possibility that the escrow account is insufficient to pay the refunded bonds whose balance outstanding at December 31, 1996 was $90,000. Note 7: SUBSEQUENT EVENTS I A. Investment Fund Grant The City entered into an agreement with Cardiac Pacemakers, Inc. and the Minnesota Department of Trade and I Economic Development (MNDTED). The agreement with the MNDTED is for a $300,000 Minnesota Investment Fund Grant that will provide funds for a forgivable loan to Cardiac Pacemakers, Inc. The agreement with Cardiac Pacemakers, Inc. was signed on December 23, 1996. The funds from MNDTED were received on I April 7, 1997 and were remitted to Cardiac Pacemakers, Inc. on April 8, 1997. B. Ice Arena Financing The City, along with three other cities and Ramsey County, entered into an agreement January I, 1997 with the I Minnesota Amateur Sports Commission (MASC) to provide financing of a four sheet ice arena. The agreement provides for rental income to cover principal, interest and operating expenses. In the case of defllult, each City will be responsible for a specific portion of the debt Arden Hills' percentage is 15.5% of one of the four sheets I and the amount of the debt will not exceed $9,000,000 for all four sheets in the complex. I I -, -20- I -----