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CITY OF EUGENE, OREGON
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<br />Notes to Basic Financial Statements
<br />
<br />continued
<br />(4) Detailed Notes on All Funds, continued
<br />
<br /> (H) Noncurrent Liabilities
<br />
<br />General Obligation (G.O.) Bonds
<br />
<br />The City issues general obligation bonds to finance major construction projects in governmental activities. G.O.
<br />bonds in governmental activities are approved by voters, backed by the full faith and credit and unlimited taxing power
<br />of the City, and are serviced by general property tax revenues. The City’s G.O. bonded debt is subject to a debt limit
<br />of 3.0% of real market value per Oregon Revised Statutes 287A.050. For the fiscal year ended June 30, 2018, the
<br />City had 99.0% of its legal debt capacity available.
<br />
<br />Original Ending
<br />Governmental activities issuance Interest rates (%)balance
<br />General obligation bonds serviced by
<br />general property taxes:
<br />General Obligation Refunding Bonds, Series 2011 $ 10,975,000 2.000% to 3.000% 2,740,000
<br />General Obligation and Refunding Bonds, Series 2016 10,125,000 2.000% to 5.000% 5,955,000
<br />Total general obligation bonds $ 21,100,000 8,695,000
<br />Annual debt service requirements to maturity for general obligation bonds are as follows:
<br />
<br />Fiscal year
<br />ending June 30 Principal Interest
<br />2019 $ 2,805,000 222,525
<br />2020 1,395,000 159,875
<br />2021 1,405,000 131,975
<br />2022 1,415,000 89,675
<br />2023 475,000 45,500
<br />2024-2026 1,200,000 72,000
<br />$ 8,695,000 721,550
<br />Governmental activities
<br /> General Obligation Bond and Revolving Credit Facility (Streets 2012)
<br />
<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, 2018, the City had $8,691,000 in authorized but unissued borrowing remaining.
<br />
<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, 2019 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, 2018, the City had a $0 balance on the credit facility.
<br />
<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 /> Beginning Ending
<br />Governmental activities balance Increase Decrease balance
<br /> G.O. bond and revolving
<br /> credit facility (Streets 2012) $0 9,330,000 (9,330,000)0
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<br />December 10, 2018, Meeting - Item 2D
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