|
CITY OF SOUTH BEND
<br />NOTES TO FINANCIAL STATEMENTS
<br />(Continued)
<br />Total business -type activities
<br />Long -term liabilities $ 58,385,728 $ 1,095,377 $ 4,623,568 $ 54,857,537 $ 2,628,172
<br />Compensated absences for governmental activities typically have been liquidated from the gen-
<br />eral fund and special revenue funds.
<br />1. Current Refunding
<br />On December 17, 2003, the City of South Bend issued $1,583,600 in refunding revenue bonds with
<br />an average interest rate of 3.22% to refund $1,735,000 of outstanding Lease Rental Revenue Refund-
<br />ing Bonds of 1992 with an average interest rate of 6.01 %. The net proceeds of $1,576,080 (after pay-
<br />ment of $7,520 in issuance costs and local contributions of $220,000 were used to retire the 1992
<br />series bonds. As a result, the 1992 bonds are considered to be defeased and the liability for those
<br />bonds has been removed from the balance sheet. The refunding resulted in the accounting loss of
<br />$57,090, which has been recognized on the balance sheet as deferral of loss on refunding. This
<br />amount will be amortized using the straight -line method and charged to interest expense over the next
<br />six years. The City, in effect, increased its aggregate debt service payment by $836,280 over the next
<br />twenty years and realized an economic loss (difference between the present values of the old and
<br />new debt service payments) of $149,960.
<br />J. Restricted Assets
<br />The balances of restricted asset accounts in the enterprise funds are as follows:
<br />48
<br />Due
<br />Beginning
<br />Ending
<br />Within
<br />Primary Government
<br />Balance
<br />Additions
<br />Reductions
<br />Balance
<br />One Year
<br />Business -type activities:
<br />Revenue bonds payable:
<br />Water Utility
<br />$ 24,705,000
<br />3 -
<br />$ 2,040000
<br />$ 22,665,000
<br />$ -
<br />Wastewater Utility
<br />4,M,000
<br />-
<br />680,000
<br />3,905,000
<br />705,000
<br />Blackthorn Golfcourse
<br />5;385,000
<br />_
<br />830000
<br />5,055,000
<br />395,000
<br />Total revenue
<br />bonds payable
<br />34,675,000
<br />3,050,000
<br />31,625,000
<br />1,100,000
<br />Mortgage bonds payable
<br />1,137,750
<br />-
<br />38,745
<br />1,099,005
<br />40,590
<br />Capital leases payable
<br />573,220
<br />459,566
<br />237,901
<br />794,885
<br />258,082
<br />Notes and loans payable
<br />21,999,758
<br />635,811
<br />1,296,922
<br />21,338,647
<br />1,229,500
<br />Total business -type activities
<br />Long -term liabilities $ 58,385,728 $ 1,095,377 $ 4,623,568 $ 54,857,537 $ 2,628,172
<br />Compensated absences for governmental activities typically have been liquidated from the gen-
<br />eral fund and special revenue funds.
<br />1. Current Refunding
<br />On December 17, 2003, the City of South Bend issued $1,583,600 in refunding revenue bonds with
<br />an average interest rate of 3.22% to refund $1,735,000 of outstanding Lease Rental Revenue Refund-
<br />ing Bonds of 1992 with an average interest rate of 6.01 %. The net proceeds of $1,576,080 (after pay-
<br />ment of $7,520 in issuance costs and local contributions of $220,000 were used to retire the 1992
<br />series bonds. As a result, the 1992 bonds are considered to be defeased and the liability for those
<br />bonds has been removed from the balance sheet. The refunding resulted in the accounting loss of
<br />$57,090, which has been recognized on the balance sheet as deferral of loss on refunding. This
<br />amount will be amortized using the straight -line method and charged to interest expense over the next
<br />six years. The City, in effect, increased its aggregate debt service payment by $836,280 over the next
<br />twenty years and realized an economic loss (difference between the present values of the old and
<br />new debt service payments) of $149,960.
<br />J. Restricted Assets
<br />The balances of restricted asset accounts in the enterprise funds are as follows:
<br />48
<br />
|