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Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $8,705,000. While all of the
<br />City's bonds have revenue streams, they are all backed by the full faith and credit of the City.
<br />City of Centerville's Outstanding Debt
<br />2016
<br />Governmental Activities
<br />2015
<br />Increase
<br />(Decrease)
<br />2016
<br />Business -type Activities
<br />Increase
<br />2015
<br />(Decrease)
<br />General obligation bonds
<br />$ 8,705,000
<br />$ 7,615,000
<br />$ 1,090,000 $ - $ - $ -
<br />General obligation capital notes
<br />59,619
<br />-
<br />59,619 - - -
<br />Compensated absences payable
<br />42,012
<br />37,703
<br />4,309 15,227 15,642 (415)
<br />Pension liability
<br />491,489
<br />306,522
<br />184,967 190,549 123,627 66,922
<br />Total
<br />$ 9,298,120
<br />$ 7,959,225
<br />$ 11338,895 $ 205,776 $ 139,269 $ 66,507
<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 $329,044,100 which
<br />calculates to a debt limit of $9,871,323. Debt financed partially or entirely by special assessments is not applied against the City's debt
<br />limit, nor is debt financed by proprietary fund revenues. Currently the City has $324,619 of general obligation debt outstanding
<br />leaving a debt margin of $9,546,704.
<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 2017 increased by 5.1%. The City's
<br />net tax capacity increased 6.21% for taxes payable in 2017. The City increased its property tax levy by 5.8% for taxes payable in
<br />2017. Tax capacity rates decreased 2.37% due to the increase in tax capacity. Most taxpayers realized an increase in City property
<br />taxes as a result of the increased value of their properties and the increased City levy.
<br />The City's General Fund budget increased for fiscal year 2017 by 9.1%; however, the General Fund tax levy increased 9.8%. The
<br />increase in General Fund expenditures, in the amount of $218,420, was primarily related to increases in police and fire protection fire
<br />contracts. Other factors affecting the 2017 General Fund budget include a 2.5% cost -of -living increase on employee wages and a
<br />$40,000 appropriation for a new monument sign.
<br />The debt service levy was reduced by $45,100 for taxes payable in 2017 due to amortization of principal on outstanding debt.
<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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