Long-term debt. At the end of the current fiscal year,the City had total bonded debt outstanding of$8,695,000.While all of the
<br /> City's bonds have revenue streams,they are all backed by the full faith and credit of the City.
<br /> City of Centerville's Outstanding Debt
<br /> Governmental Activities Business-type Activities
<br /> Increase Increase
<br /> 2014 2013 (Decrease) 2014 2013 (Decrease)
<br /> General obligation bonds $ 8,695,000 $ 9,550,000 $ (855,000) $ - $ - $ _
<br /> Compensated absences payable 33,978 36,931 (2,953) 16,687 15,715 972
<br /> Total $ 8,728,978 $ 9,586,931 _L_(857 $ 16,687 $ 15,715 $ 972
<br /> Minnesota statutes limit the amount of net general obligation debt a City may issue to 3 percent of the market value of taxable
<br /> property within the City. Net debt is debt payable solely from ad valorem taxes. The taxable market value totals$285,605,600 which
<br /> calculates to a debt margin of$8,568,168. Debt financed partially or entirely by special assessments is not applied against the City's
<br /> debt limit,nor is debt financed by proprietary fund revenues. Currently the City has$395,000 of general obligation debt outstanding
<br /> leaving a debt margin of$8,173,168.
<br /> Additional information on the City's long-term debt can be found in Note 3D starting on page 59 of this report.
<br /> Economic Factors and Next Year's Budgets and Rates
<br /> The area economy continues to show signs of improvement. Property values for taxes payable in 2015 increased for the first time in
<br /> several years. The City's net tax capacity increased 13 percent for taxes payable in 2015,compared to 2014. Even though the City
<br /> increased its property tax levy by 4.9 percent for 2015,tax capacity rates decreased by 8.6 percent due to the increased value in the tax
<br /> base. Most taxpayers,however,still realized an increase in City property taxes as a result of the increased value of their properties.
<br /> The City's General fund Budget was increased for 2015 by 5.7 percent;however,the General fund levy was only increased
<br /> 3.3 percent due to expected increases in building permit revenue and local government aid.Additional debt service obligations
<br /> accounted for the remainder of the increase,resulting in an overall levy increase of 4.9 percent.The debt service levy increased by
<br /> 10.2 percent,or$54,500,primarily due to the structuring of the 2011 A General Obligation Bond's payment schedule.
<br /> The increase in General fund expenditures was primarily related to an increase in the police protection contract,employee cost-of-
<br /> living increases of 2.5 percent,increased workers'compensation premiums,a$15,000 increase in the parks and recreation
<br /> appropriation,and a$33,000 increase in capital outlay appropriations. In addition,there was a 19.5 percent,or$44,539,increase in
<br /> the fire protection budget. However,that was due primarily to increased pension expenditures that will be offset by State funding.
<br /> Requests for Information
<br /> This financial report is designed to provide a general overview of the City's finances for all parties interested. Questions concerning
<br /> any of the information provided in this report or requests for additional financial information should be addressed to the City
<br /> Administrator,City of Centerville, 1880 Main Street.Centerville, Minnesota.55038.
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