2019 Adpted Budget - Laserfiche WebLink

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DEBT SERVICE FUNDS DESCRIPTION: The Debt Service Fund.s.repay the .outstanding debt obligations of the City of Gem Lake. Debt service 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: 2016 2017 2018 2019 ACTUAL. ACTUAL ACTUAL. ESTIMATED Bond .Rating Non -Rated Non -Rated Non -Rated Non -Rated Dec. 31 Debt. Outstanding (In thousands) $775 $715 $1,315 $1,250 Net Debt Per Capita $11872 $11727 $2,941 $2,796 DEBT LIMITATIONS: All Minnesota municipalities (counties, cities, towns and school districts) . are subject to statutory "net: debt' limitations under the provisions.of Minnesota Statutes, Section 47.5.53. 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 Ore financed by property taxes unless at least 20% of the annual debt service casts 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 Bands. In 2015, the City issued the 201.5 G. O. Refunding Bonds to retire the 2007 Capital Improvement Plan Bonds in 2016. The. City's current legal debt limit:and debt margin J&a, follows: Legal Debt Limit (3°/a. of Estimated Market. Value) $3;425;472 Less: Outstanding Debt Subject to Limit (6554000) Legal Debt Margin. as of January 1, 2019 $2,770,472 BUDGET COMMENTARY: The City's debt consists of a capital improvement plan bond.for the construction of Heritage Hall, which 34