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COUNTY OF ADAMS, PENNSYLVANIA
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2025
A summary of changes in long-term liabilities follows:
| Governmental Activities: | Beginning Balance | Additions | Reductions | Ending Balance | Amounts Due Within One Year |
|---|
| General Obligation Debt and Note Payable: | | | | | |
|---|
| General Obligation Debt | $61,020,000 | $ - | $ 4,640,000 | $56,380,000 | $ 4,770,000 |
|---|
| Less: Bond Discount | (53,852) | - | (4,223) | (49,629) | (4,223) |
|---|
| Plus: Bond Premium | 1,385,781 | - | 151,996 | 1,233,785 | 151,996 |
|---|
| Total General Obligation Debt | 62,351,929 | - | 4,787,773 | 57,564,156 | 4,917,773 |
|---|
| Note Payable | 342,858 | - | 57,143 | 285,715 | 57,143 |
|---|
| Total General Obligation Debt and Note Payable: | 62,694,787 | - | 4,844,916 | 57,849,871 | 4,974,916 |
|---|
| Other Long-Term Liabilities: | | | | | |
|---|
| Compensated Absences | 1,820,914 | 109,987 | - | 1,930,901 | 193,090 |
|---|
| Governmental Activities: | | | | | |
|---|
| Long-Term Liabilities | $64,515,701 | $ 109,987 | $ 4,884,916 | $59,780,772 | $ 5,168,006 |
|---|
Compensated absences are liquidated by the General Fund, Children & Youth Fund, 911 Fund, and certain other Nonmajor Funds.
The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the issuance of tax-exempt debt bonds after August 31, 1986. Arbitrage regulations deal with the investment of all tax-exempt bond proceeds at an interest yield greater than the interest yield paid to bondholders. Generally, all interest paid to bondholders can be retroactively rendered taxable if rebates are not reported and paid to the Internal Revenue Service (IRS) at least every five years. At December 31, 2025, the County has not recorded an arbitrage liability in its financial statements.