2022 Adopted Budget - Laserfiche WebLink

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DEBT SERVICE FUNDS DESCRIPTION' The Debt Service Funds repay the outstanding debt obligations of the City of Gem Lake. Debt service funds use the modified accrual basis of accounting; however, the cash basis of accounting will be used for budgetary purposes only. The cash basis is used for budgeting to ensure that sufficient cash will be available to make required payments on the City's bonded indebtedness. GOALS: Retire all debt in a timely basis as scheduled. MEASURABLE WORKLOAD DATA: Bond Rating Dec. 31 Debt Outstanding (In thousands) Net Debt Per Capita DEBT LIMITATIONS: 2019 2020 2021 2021 ACTUAL ACTUAL ACTUAL ESTIMATED Non -Rated Non -Rated Non -Rated Non -Rated $1,250 $1,160 $1,065 $960 $2,796 $2,555 $1,987 $1,791 All Minnesota municipalities (counties, cities, towns and school districts) are subject to statutory "net debt" limitations under the provisions of Minnesota Statutes, Section 475.53. Under this provision, the legal debt limit is 3.0% of the assessor's market value of the municipalities' tax base. Bond issues covered by this limit are those that are financed by property taxes unless at least 20% of the annual debt service costs are financed by special assessments or tax increments. At present, the City has one bond issue that is subject to the debt limit: the 2015 G. O. Refunding Bonds. The City's current legal debt limit and debt margin is as follows: Legal Debt Limit (3% of Estimated Market Value) $4,198,017 Less: Outstanding Debt Subject to Limit (470,000) Legal Debt Margin as of January 1, 2022 $3,728,017 BUDGET COMMENTARY: The City's debt consists of a capital improvement plan bond for the construction of Heritage Hall, which is repaid from a property tax levy and was refunded with the 2015 G. O. Refunding Bond. In 2018, the 34