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CITY OF CENTERVILLE, MINNESOTA
<br /> NOTES TO THE FINANCIAL STATEMENTS
<br /> DECEMBER 31, 2012
<br /> Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED
<br /> Changes in long -term liabilities
<br /> During the year ended December 31, 2012, the following changes occurred in noncurrent liabilities:
<br /> Beginning Ending Due Within
<br /> Balance Increases Decreases Balance One Year
<br /> Governmental activities
<br /> Bonds payable $ 9,325,585 $ 515,000 $ (545,604) $ 9,294,981 $ 1,229,980
<br /> Compensated absences
<br /> payable 37,983 42,382 (48,061) 32,304 30,601
<br /> Governmental activities
<br /> long -term liabilities $ 9,363,568 $ 557,382 $ (593,665) $ 9,327,285 $ 1,260,581
<br /> Business -type activities
<br /> Compensated absences
<br /> payable $ 14,268 $ 17,112 $ (18,278) $ 13,102 $ 13,102
<br /> Crossover refunding
<br /> On June 14, 2012 the City issued $515,000 of General Obligation Improvement Crossover Refunding Bonds, Series
<br /> 2012A. The bonds issued will crossover refund the 2005A General Obligation Improvement Bonds. The proceeds of the
<br /> bonds were deposited in an escrow account and will be used to pay issuance costs and to purchase government
<br /> obligations. The government obligations will bear interest rates that will provide sufficient funds to refund the old bonds.
<br /> The bonds will be refunded on February 1, 2013. The escrow account will also provide debt service payments on the new
<br /> bond until the crossover dates. The old bonds are not considered defeased until the crossover dates, and therefore will not
<br /> be removed as liabilities. As a result of the crossover refunding issue, the City will save $59,385 in debt service
<br /> payments and achieve an economic gain (the present value of the difference between the old and the new debt service) of
<br /> $54,261.
<br /> D. Interfund balances and transfers
<br /> The following is a schedule of interfund transfers as of December 31, 2012:
<br /> Transfer in
<br /> Storm Other
<br /> Fund Water Governmental Total
<br /> Transfer out
<br /> General $ - $ 189,000 $ 189,000
<br /> Other Governmental 10,464 - 10,464
<br /> Total $ 10,464 $ 189,000 $ 199,464
<br /> • A transfer of $189,000 from the General fund to other governmental funds for funding of future street projects
<br /> and maintenance.
<br /> • A transfer of $10,464 from other governmental funds to the Storm Water fund to close the other governmental
<br /> fund.
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