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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 />
<br />Changes in long-term liabilities
<br />
<br />During the year ended December 31, 2012, the following changes occurred in noncurrent liabilities:
<br />
<br />BeginningEndingDue Within
<br />BalanceIncreasesDecreasesBalanceOne 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 liabilities9,363,568$ $ 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 />
<br />Crossover refunding
<br />
<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 />$54,261.
<br />
<br />D.Interfund balances and transfers
<br />
<br />The following is a schedule of interfund transfers as of December 31, 2012:
<br />
<br />Transfer in
<br />StormOther
<br />Fund
<br />WaterGovernmentalTotal
<br />Transfer out
<br />General$ 189,000-$ $ 189,000
<br />Other Governmental 10,464 10,464-
<br />Total$ 10,464$ 189,000$ 199,464
<br />
<br />A transfer of $189,000 from the General fund to other governmental funds for funding of future street projects
<br />and maintenance.
<br />
<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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