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Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $7,615,000. 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 />2015 2014 (Decrease) 2015 2014 (Decrease)
<br />General obligation bonds $ 7,615,000 $ 8,695,000 $ (1,080,000) $ - $ - $ -
<br />Compensated absences payable 37,703 33,978 3,725 15,642 16,687 (1,045)
<br />Pension liability 306,522 - 306,522 123,627 - 123,627
<br />Total $_7,.959 225
<br />$ 8,728,978 $ (769,753) $ 139,269 $ 16,687 $ 122,582
<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 $320,597,000 which
<br />calculates to a debt margin of $9,617,910. 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 $330,000 of general obligation debt outstanding
<br />leaving a debt margin of $9,287,910.
<br />Additional information on the City's long-term debt can be found in Note 3D starting on page 60 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 2016 increased by 2.7%. The City's
<br />net tax capacity increased 2.9% for taxes payable in 2016. The City increased its property tax levy by 7 percent for taxes payable in
<br />2016 and tax capacity rates increased 6.9% as a result. Most taxpayers realized an increase in City property taxes as a result of the
<br />increased value of their properties, the increased City levy, and a 9.2% decrease in the distribution from the fiscal disparities pool.
<br />The City's General Fund budget increased for fiscal year 2016 by 7.5%; however, the General Fund tax levy increased 9.4%. The
<br />increase in General Fund expenditures, in the amount of $167,579, was primarily related to increases in public safety expenditures.
<br />The City's policing contract with the Centennial Lakes Police Department increased 11.2% for 2016. The fire protection contract with
<br />Centennial Fire increased 7% due to a reorganization of the fire district, as Lino Lakes ended its relationship with the district. Other
<br />factors affecting the 2016 General Fund budget include a 2.5% cost -of -living increase on employee wages and an 11% increase in
<br />legal fees related to prosecution.
<br />The debt service levy remains level at $591,000 for taxes payable in 2016.
<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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