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CITY OF EUGENE, OREGON
<br />Notes to Basic Financial Statements
<br />continued
<br />(4) Detailed Notes on All Funds, continued
<br />(H) Noncurrent Liabilities
<br />Direct Borrowings
<br />The City enters into direct borrowing agreements in the form of revolving credit facilities to provide temporary
<br />financing for voter approved General Obligation (G.O.) bond funded construction projects in governmental activities.
<br />The debt will be repaid from general property tax revenues or by the future issuance of long-term general obligation
<br />bonds, which can be issued at the City’s discretion. The draws on the credit facilities are backed by the full faith and
<br />credit of the City and are included in the City’s G.O. debt limit.
<br />General Obligation Bond and Revolving Credit Facility (Streets 2017)
<br />On November 7, 2017, Eugene voters passed Measure 20-275, authorizing the City to issue a maximum of
<br />$51,200,000 of G.O. bonds. The proceeds from the sale of the bonds are to be used for streets, bicycle and
<br />pedestrian projects. The bonds can be issued to provide interim financing for costs of the projects, including costs
<br />associated with this facility. As of June 30, 2019, the City had $48,650,000 in authorized but unissued borrowing
<br />remaining.
<br />These bonds were issued through a G.O. and a revolving credit facility with Umpqua Bank. which matures on June 1,
<br />2024 and has an authorized limit of $5,000,000. The interest rate is a floating rate equal to the prime rate minus
<br />2.55%. Draws on this credit facility are recorded as a financing source in the Transportation Capital Projects Fund.
<br />As of June 30, 2019, the City had a $2,250,000 balance on the credit facility and an unused line of credit amount of
<br />$2,750,000.
<br />In the event of a default the bank may declare that the outstanding balance on the credit facility shall bear interest at
<br />the default rate until such event of default is remedied. The default rate is equal to the facility interest rate plus
<br />3.00%.
<br /> Beginning Ending
<br />Governmental activities balance Increase Decrease balance
<br /> G.O. bond and revolving
<br /> credit facility (Streets 2017) $0 2,550,000 (300,000) 2,250,000
<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, 2019, the City had $0 in authorized but unissued borrowing remaining.
<br />These bonds were issued through a G.O. and revolving credit facility with Bank of America, N.A. which matured on
<br />June 1, 2019. Draws on this credit facility are recorded as a financing source in the Transportation Capital Projects
<br />Fund. As of June 30, 2019, the City had a $0 balance on the credit facility.
<br /> Beginning Ending
<br />Governmental activities balance Increase Decrease balance
<br /> G.O. bond and revolving
<br /> credit facility (Streets 2012) $0 8,690,300 (8,690,300)0
<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, 2019, the
<br />City had $1,750,000 in authorized but unissued borrowing remaining.
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<br />December 9, 2019, Meeting - Item 2CCC Agenda - Page 102
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