2015 Financial Statements - Laserfiche WebLink

Home

CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2015 (26) NOTE 4 CITY INDEBTEDNESS (CONTINUED) Description and Restrictions of Long-Term Debt General Obligation Bonds – The bonds were issued for improvements or projects which benefited the City as a whole and are, therefore, repaid from ad valorem levies. General Obligation Refunding Bonds – In 2015 the City issued General Obligation Crossover Refunding Bonds to refund the 2007A General Obligation Bonds. The City will be responsible for the February 2016 payment after which the crossover will occur and the escrow will be responsible for the remaining principal and interest payments of the 2007A bond, resulting in a defeasance of the bond. The refunding resulted in a net present value cash savings of $41,908. NOTE 5 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY Deficit Fund Balances The City has deficit fund balances at December 31, 2015 as follows: Fund Balance Deficit GO Improvement Bonds Series 2004A 1,729$ Hoffman Road Fund 128,611 The City intends to fund these deficits through future tax levies, transfers from other funds, and various other sources. Excess of Expenditures Over Budget As of December 31, 2015, the General Fund had expenditures in excess of its appropriations of $331,932 by $55,057. These expenditures in excess of appropriations were funded by greater than anticipated revenues. NOTE 6 INTERFUND BALANCES AND ACTIVITIES Due To/From Other Funds Individual fund receivable and payable balances at December 31, 2015 are as follows: Interfund Interfund Receivable Payable Governmental Activity: General Fund 126,506$ -$ GO Improvement Bonds 2004A - 3,131 Hoffman Road Fund - 123,375 126,506$ 126,506$ Interfund receivable and payable balances represent the elimination of negative cash between funds.