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CITY OF GEM LAKE, MINNESOTA
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />DECEMBER 31, 2014
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<br />(27)
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<br />NOTE 4 CITY INDEBTEDNESS
<br />City indebtedness at December 31, 2014 is composed of the following:
<br />
<br />Final
<br />Issue Maturity Interest Original Balance
<br />Date Date Rate Issue
<br />12/31/14
<br />Governmental Activities:
<br />General Obligation Bonds:
<br />2007A Capital Improvement Bonds 06/20/2007 02/01/2028 4.00-4.50% 850,000$ 760,000$
<br />Unamortized Bond Discount (25,111) (6,207)
<br />Total 824,889$ 753,793$
<br />The following is a schedule of changes in City indebtedness for the year ended
<br />December 31, 2014:
<br />
<br />Balance Balance Due Within
<br />12/31/13 Additions Reductions 12/31/14 One Year
<br />Long-Term Debt
<br />Governmental Activities
<br />General Obligation Bonds 775,000$ -$ 15,000$ 760,000$ 15,000$
<br />Unamortized Bond Discount (6,670) - (463) (6,207) -
<br />Total Long-Term Debt 768,330$ -$ 14,537$ 753,793$ 15,000$
<br />All long-term bonded indebtedness outstanding at December 31, 2014 is backed by the full
<br />faith and credit of the City, including special assessment bond issues. For the governmental
<br />activities, compensated absences are generally liquidated by the general fund.
<br />
<br />During the year ended December 31, 2013, the City called the outstanding portions of the
<br />Series 2004A and 2006A General Obligation Improvement Bonds, by using existing fund
<br />balance.
<br />
<br />Minimum annual principal and interest payments required to retire long-term debt are as
<br />follows:
<br />
<br />Year Ending December 31, Principal Interest Total
<br />2015 15,000$ 32,355$ 47,355$
<br />2016 15,000 31,755 46,755
<br />2017 50,000 30,430 80,430
<br />2018 50,000 28,380 78,380
<br />2019 55,000 26,214 81,214
<br />2020-2024 295,000 95,206 390,206
<br />2025-2028 280,000 25,738 305,738
<br />Total 760,000$ 270,078$ 1,030,078$
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