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Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $8,695,000. While all of the
<br />City’s bonds have revenue streams, they are all backed by the full faith and credit of the City.
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<br />City of Centerville’s Outstanding Debt
<br />Governmental ActivitiesBusiness-type Activities
<br />IncreaseIncrease
<br />20142013(Decrease)20142013(Decrease)
<br />General obligation bonds$ 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$ (857,953) $ 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.
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<br />Additional information on the City’s long-term debt can be found in Note 3D starting on page 59 of this report.
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<br />Economic Factors and Next Year’s Budgets and Rates
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<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.
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<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 2011A General Obligation Bond’s payment schedule.
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<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.
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<br />Requests for Information
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<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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