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CITY OF GEM LAKE, MINNESOTA <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />DECEMBER 31, 2017 <br /> <br /> <br /> <br />(26) <br /> <br />NOTE 4 CITY INDEBTEDNESS (CONTINUED) <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 />2018 60,000$ 15,755$ 75,755$ <br />2019 65,000 14,828 79,828 <br />2020 60,000 13,765 73,765 <br />2021 60,000 12,640 72,640 <br />2022 65,000 11,359 76,359 <br />2023-2027 335,000 33,138 368,138 <br />2028 70,000 1,015 71,015 <br />Total 715,000$ 102,500$ 817,500$ <br />Description and Restrictions of Long-Term Debt <br />General Obligation Bonds – The bonds were issued for improvements or projects which <br />benefited the City as a whole and are, therefore, repaid from ad valorem levies. <br /> <br />General Obligation Refunding Bonds – In 2015, the City issued General Obligation <br />Crossover Refunding Bonds to refund the 2007A General Obligation Bonds. The City was <br />responsible for the February 2016 payment and after, the crossover occurred and the <br />escrow will be responsible for the remaining principal and interest payments of the 2007A <br />bond, resulting in a defeasance of the bond. <br /> <br /> <br />NOTE 5 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY <br />Deficit Fund Balances <br />The City has a deficit fund balance at December 31, 2017 as follows: <br /> <br />Fund Balance <br />Deficit <br />Hoffman Road Fund (357,159)$ <br />Scheuneman Road (16,754) <br />G.O. Improvement Bonds 2004A (1,396) <br /> <br />The City intends to fund these deficits through future tax levies, transfers from other funds, <br />and various other sources. <br />