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CITY OF GEM LAKE, MINNESOTA <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />DECEMBER 31, 2019 <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 />2020 90,000$ 36,165 126,165$ <br />2021 95,000 34,065 129,065 <br />2022 105,000 31,659 136,659 <br />2023 105,000 29,029 134,029 <br />2024 105,000 26,301 131,301 <br />2025-2029 490,000 86,424 576,424 <br />2030-2034 260,000 26,600 286,600 <br />Total 1,250,000$ 270,243$ 1,520,243$ <br /> <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 the escrow is <br />responsible for the remaining principal and interest payments of the 2007A bond, resulting <br />in a defeasance of the bond. <br /> <br />General Obligation Improvement Bonds – In 2018, the City issued General Obligation <br />Improvement Bonds for improvements and projects which benefitted the entire city. <br /> <br /> <br />NOTE 5 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY <br />Deficit Fund Balances <br />The City has deficit fund balances at December 31, 2019 as follows: <br /> <br />Fund Balance <br />Deficit <br />Hoffman Road Fund (232,018)$ <br />Scheuneman Road Fund (2,210) <br />The City intends to fund these deficits through future tax levies, transfers from other funds, <br />and various other sources. <br />