I-1 - Preliminary Official Statement - UR Loan Agreement

E. Budgets and Budgetary Accounting The budgetary comparison and related disclosures are reported as Other Information. During the year ended June 30, 2019, the City exceeded the amounts budgeted in the public works, general government, debt service, capital projects and business type activities functions prior to the budget amendment. Even with the budget amendment, the City exceeded the amounts budgeted in the debt service and business type activities functions by $30,000 and $37,558 respectively. (2) Cash and Pooled Investments The City’s deposits in banks at June 30, 2019 were entirely covered by federal depository insurance or by the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa. This chapter provides for additional assessments against the depositories to ensure there will be no loss of public funds. The City is authorized by statute to invest public funds in obligations of the United States government, its agencies and instrumentalities; certificates of deposit or other evidences of deposit at federally insured depository institutions approved by the City Council; prime eligible bankers acceptances; certain high rated commercial paper; perfected repurchase agreements; certain registered open-end management investment companies; certain joint investment trusts; and warrants or improvement certificates of a drainage district. The City had no investments meeting the disclosure requirements of Governmental Accounting Standards Board Statement No. 72. (3) Bonds Payable Annual debt service requirements to maturity for general obligation bonds and revenue bonds are as follows: Year General Obligation Ending Bonds Revenue Bonds Total June 30, Principal Interest Principal Interest Principal Interest 2020 $ 1,040,000 346,165 20,000 1,487 1,060,000 347,652 2021 1,060,000 322,495 21,000 1,138 1,081,000 323,633 2022 1,085,000 296,883 22,000 770 1,107,000 297,653 2023 1,110,000 269,342 22,000 385 1,132,000 269,727 2024 1,055,000 240,383 - 1,055,000 240,383 2025-2029 4,600,000 738,060 - - 4,600,000 738,060 2030-2034 1,910,000 222,220 - - 1,910,000 222,220 2035-2038 300,000 30,600 - - 300,000 30,600 Total $ 12,160,000 2,466,148 85,000 3,780 12,245,000 2,469,928 General Obligation Bonds On September 1, 2012, the City issued $6,100,000 of general obligation corporate purpose and refunding bonds for the purpose of refunding $1,275,000 of three outstanding general obligation bonds (sewer improvement series A, sewer improvement series B and water improvements) and to construct street, water and sewer system improvements. The bonds bear interest rates ranging from 1.00% to 2.50% per annum and mature on June 1, 2027. During the year ended June 30, 2019, the City paid principal of $460,000 and interest of $68,005 on the bonds. The outstanding principal balance at June 30, 2019 was $2,990,000. 25