2016 Adopted Budget - Laserfiche WebLink

Home

DEBT SERVICE. FUNDS DESCRIPTION: The. Debt Service Funds repay the outstanding. debt obligations of the City of Gem Lake, Debtservice 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: 2013 2014 2015 2016 ACTUAL ACTUAL ACTUAL ESTIMATED Bond. Rating Non -Rated Non -Rated Nan -Rated Non -Rated Dec. 31 Debt Outstanding, (In thousands) $775 .$760 $745 $775 Net:Debt Per Capita $1,952 $1,914 $1,877 $1,942 DEBT LIMITATIONS:. Afl 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 2007 Capital Improvement Plan Bonds, in 201:5 the City issued the 2015 G. O. Refunding Bonds to retire the 2007 Capital Improvement Plan Bonds in 2016. The City's current legal debt limit and debt margin is. as follows: Legal Debt Limit (3% of Estimated Market Value) $2,938,395 Less: Outstanding Debt Subject to Limit (775,000) Legal Debt Margin as of January 1, 2016 $2,163,395 BUDGET COMMENTARY: The City's debt consists of a capital improvement plan bond for the construction of Heritage Hall which 84