|
CITY OF EUGENE, OREGON
<br />Notes to Basic Financial Statements
<br />(4) Detailed Notes on All Funds, continued
<br /> (H) Noncurrent Liabilities, continued
<br /> General Obligation Bond and Revolving Credit Facility (Streets 2012)
<br /> On November 6, 2012, Eugene voters passed Measure 20-197, authorizing the City to issue a maximum of
<br />$43,000,000 of general obligation (G.O.) bonds. The proceeds from the sale of the bonds are to be used for street
<br />preservation. The bonds can be issued to provide interim financing and to refund the bonds that provide interim
<br />financing. As of June 30, 2015, the City had $33,500,000 in authorized but unissued borrowing remaining.
<br />These bonds are issued through a G.O. and revolving credit facility with Bank of America, N.A. which matures on
<br />June 1, 2017 and has an authorized limit of $5,000,000. The City elects from either a LIBOR based taxable or tax
<br />exempt interest rate for each draw. As of June 30, 2015, the City had a $1,410,300 balance on the credit facility, in
<br />addition to $2,123 in accrued interest expense.
<br />Draws on this credit facility are recorded as a financing source in the Transportation Capital Projects Fund. The debt
<br />will be repaid from general property tax revenues or by the future issuance of long-term general obligation bonds,
<br />which can be issued at the City’s discretion. The General Obligation Bond and Revolving Credit Facility (Streets and
<br />Off-Street Bike and Pedestrian Paths) is backed by the full faith and credit of the City and is included in the City’s
<br />G.O. debt limit.
<br />
<br /> General Obligation Bond and Revolving Credit Facility (POS)
<br />On November 7, 2006, Eugene voters passed Measure 20-110, authorizing the City to issue a maximum of
<br />$27,490,000 of general obligation (G.O.) bonds. The proceeds from the sale of the bonds are to be used for the
<br />purchase of land for parks and open space, and the construction and improvement of athletic fields. The bonds can
<br />be issued to provide interim financing and to refund the bonds that provide interim financing. As of June 30, 2015, the
<br />City had $8,320,000 in authorized but unissued borrowing remaining.
<br />To issue these bonds, on May 31, 2007, the City entered into a General Obligation Bond and Revolving Credit Facility
<br />with Bank of America, N.A. currently bearing interest at 0.75% with a maturity date of June 1, 2017. The facility has
<br />an authorized limit of $6,875,000 outstanding at any given time and is further limited to a maximum of the amount
<br />authorized under the bond measure. As of June 30, 2015, the City had a $1,300,000 balance on the credit facility, in
<br />addition to $1,075 in accrued interest expense.
<br />Draws on this credit facility are recorded as a financing source in the General Capital Projects Fund. The debt will be
<br />repaid from general property tax revenues or by the future issuance of long-term general obligation bonds, which can
<br />be issued at the City’s discretion. The General Obligation Bond and Revolving Credit Facility (Parks, Athletic Fields,
<br />and Open Spaces) is backed by the full faith and credit of the City and is included in the City’s G.O. debt limit.
<br />continued
<br />62
<br />
|