2003-03-26 CC Packet - Laserfiche WebLink

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CITY OF CENTERVILLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2002 Note 3: DETAn..ED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED General Obligation Revenue Bonds The following bonds were issued to finance improvements to the water system. They will be retired by user charges and are backed by the full faith and credit of the City. Authorized and Issued . ,~ Interest Rate Balance Issue Maturity at Date Date Year End 08-01-96 02-01-08 $ 270,000 07-01-98 02-01-09 535.000 S 805.000 G.O. Water Revenue Bonds of 1996 $ 410,000 5.05-5.40% G.O. Water and Sewer Revenue Bonds of 1998 720,000 4.15-4.80 Total General Obligation Revenue Bonds Capital Lease Payable During 1992, the City entered into a lease, with option to purchase, agreement as lessee for financing the construction of the City admini!ltration office and fire department Title remains with the City so long as they are not in default of terms in the lease agreement. The lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future miniml'pn lease payments as of the date of its inception. t. $ 500,000 6.28% 09-16-92 02-01-03 S 57.238 ) Compensated Absences This liability represents vested benefits earned by employees through the end of the year, which will be paid at termination of employment in future years. Total Compensated Absences s 14.347 Changes in General Long-term Liabilities. During the year ended December 31, 2002, the following changes occurred in liabilities reported in the general long-term debt account group. Balance Balance January 1, December 31, .1 2002 Additions Reductions 2002 G.O. Improvement Bonds $ 2,380,000 $ 635,000 $ 410,000 $ 2,605,000 G.O. Revenue Bonds 310,000 40,000 270,000 Capital Lease Payable 112,732 55,494 57,238 Compensated Absences 14.451 104 14.347 Total S 2.817.183 S 635.000 9: 505.598 9: 2.946.585 -19- '"