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CITY OF SOUTH BEND <br />NOTES TO FINANCIAL STATEMENTS <br />(Continued) <br />4. Notes and Loans Payable <br />The primary government has entered into various notes /loans. Annual debt service requirements <br />to maturity for the notes /loans are as follows: <br />Year Ended <br />Governmental Activities <br />Business-Type <br />Activities <br />December 31 <br />Principal <br />Interest <br />Principal <br />Interest <br />2004 <br />2005 <br />$ 786,609 $ <br />338,077 <br />$ 1,229,500 <br />$ 577,050 <br />2006 <br />871,251 <br />308,176 <br />1,413,141 <br />579,531 <br />2007 <br />911,212 <br />274,250 <br />1,388,582 <br />544,953 <br />2008 <br />781,508 <br />230,826 <br />1,427,122 <br />509,516 <br />2009 -2013 <br />818,074 <br />590,419 <br />1,470,765 <br />473,088 <br />2014 -2018 <br />2,879,825 <br />465,274 <br />7,919,403 <br />1,781,749 <br />2019 -2023 <br />754,036 <br />329,469 <br />117,350 <br />6,130,938 <br />729,785 <br />787,689 <br />30,112,808 <br />20,025 <br />359,196 <br />10,490 <br />Totals <br />$ 8,131,984 $ <br />2,344,397 <br />$ 21,338,647 <br />$ 5,206,162 <br />8,172,424 <br />5. Changes in Long -Term Liabilities <br />Long -term liability activity for the year ended December 31, 2003, was as follows: <br />47 <br />Due <br />Beginning <br />Endinq <br />Within <br />Primary Government <br />Balance <br />Additions <br />Reductions <br />Balance <br />One Year <br />Governmental activities: <br />Bonds payable: <br />General obligation <br />$ 2,085,000 <br />$ - <br />$ 560,000 <br />$ 1,525,000 <br />$ 590,000 <br />Revenue <br />63,175,000 <br />34,215,000 <br />12,320,000 <br />85,070,000 <br />2,680,000 <br />Mortgage <br />9,565,497 <br />21,335,000 <br />787,689 <br />30,112,808 <br />587,519 <br />Total bonds payable <br />74,825,497 <br />55,550,000 <br />13,667,689 <br />116,707,808 <br />3,857,519 <br />Notes and loans payable <br />8,172,424 <br />403,290 <br />443,730 <br />8,131,984 <br />786,609 <br />Capital leases <br />3,455,652 <br />795,324 <br />591,654 <br />3,659,322 <br />688,316 <br />Compensated absences <br />3,354,002 <br />2,884,153 <br />2,708,101 <br />3,530,054 <br />2,912,357 <br />Net pension obligation <br />40,669,182 <br />- <br />40,669,182 <br />Total governmental activities <br />Long -term liabilities <br />$ 130,476,757 <br />$ 59,632,767 <br />$ 17,411,174 <br />$ 172,698,350 <br />$ 8,244,801 <br />47 <br />