Resolution No. 5176 - Laserfiche WebLink

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CITY OF EUGENE, OREGON Notes to Basic Financial Statements (4) Detailed Notes on All Funds, continued (G) Operating Leases, continued The following is a schedule of future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of June 30, 2016: (H) Noncurrent Liabilities General Obligation (G.O.) Bonds The City issues general obligation bonds to finance major construction projects in governmental activities. G.O. bonds in governmental activities are approved by voters, backed by the full faith and credit and unlimited taxing power of the City, and are serviced by general property tax revenues. The City’s G.O. bonded debt is subject to a debt limit of 3.0% of real market value per Oregon Revised Statutes 287A.050. For the fiscal year ended June 30, 2016, the City had 98.0% of its legal debt capacity available. On June 28, 2016, the City issued $10,125,000 of General Obligation and Refunding Bonds, Series 2016, bearing a fixed interest rate of 2.0% to 5.0%, and maturing on June 1, 2026. The bonds were sold at a premium of $808,196. The proceeds of the Bonds were used to refund $2,350,000 of the General Obligation Bond and Revolving Credit Facility (POS) and advance refund $2,060,000 of the Parks and Open Spaces Bonds, Series 2004 bearing interest rates ranging from 4.100% to 4.650% and $4,360,000 of the General Obligation Refunding Bonds, Series 2006 bearing interest rates ranging from 4.000% to 4.125% In addition, $2,000,000 of the Bond proceeds will be used for the purchase of land for parks and open space, and the construction and improvement of athletic fields. Bond proceeds in the amount of $6,462,114 were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments for the outstanding Parks and Open Spaces Bonds, Series 2004, dated December 1, 2016 through June 1, 2023 and General Obligation Refunding Bonds, Series 2006, dated December 1, 2016 through March 1, 2019. As a result, these portions of the 2004 and 2006 Series bonds are considered to be defeased and the liability for these bonds has been reduced by the amounts stated above. The City advance refunded the 2004 and 2006 Series bonds to reduce its total debt service payments over the next 7 years and to obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of $417,580. continued 60