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CITY OF EUGENE, OREGON
<br />Notes to Basic Financial Statements
<br />(4) Detailed Notes on All Funds, continued
<br /> (J) Noncurrent Liabilities
<br /> General Obligation Bond and Revolving Credit Facility
<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
<br />the purchase of land for parks and open space, and the construction and improvement of athletic fields and the
<br />West Eugene Wetlands Education Center. The City can issue the bonds in one or more series. The bonds can
<br />be issued to provide interim financing and to refund the bonds that provide interim financing.
<br />On May 13, 2007, the City entered into a General Obligation Bond and Revolving Credit Facility with Bank of
<br />America, currently bearing interest at 0.75% with a maturity date of June 1, 2012. The facility has an
<br />authorized limit of $6,875,000 and is further limited to $27,490,000 less the amount of any general obligation
<br />bonds issued for the purpose of repaying the credit facility. As of June 30, 2009, the City had a $1,696,200
<br />balance on the credit facility with $5,600,000 in long-term bonds issued to refund a portion of this debt.
<br />Draws on this credit facility are recorded as a financing source in the General Capital Projects Fund. The debt
<br />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 General Obligation Bond and Revolving Credit Facility
<br />is backed by the full faith and credit of the City and is included in the City’s G.O. bonded debt margin limit.
<br /> Beginning Ending
<br />balance Increase Decrease balance
<br />Governmental activities
<br /> G.O. bond and revolving credit
<br /> facility (POS) $ 4,980,000 4,345,000 (7,628,800) 1,696,200
<br />General Obligation Bonds
<br />The City issues general obligation bonds to finance major construction projects in governmental and business-
<br />type activities. G.O. bonds in governmental activities are backed by the full faith and credit of the City and are
<br />serviced by general property tax revenues. The City’s G.O. bonded debt is subject to a debt margin of 3% of
<br />real market value per Oregon Revised Statutes 287.004. For the year ended June 30, 2009, the City had 94%
<br />of capacity available. G.O. bonds currently outstanding are as follows:
<br />OriginalEnding
<br />Governmental activitiesIssuance Interest rates (%) balance
<br />General obligation bonds serviced by
<br />general property taxes:
<br />Fire Projects Bonds, Series 2002 $ 8,680,000 3.000% to 4.650% 6,170,000
<br />Parks and Open Spaces Bonds, Series 2004 6,305,000 2.500% to 4.650% 4,630,000
<br />General Obligation Refunding Bonds, Series 2006 24,990,000 3.500% to 4.125% 21,595,000
<br />Parks and Open Spaces Bonds, Series 2008 5,600,000 5.100% 5,600,000
<br />Total general obligation bonds $ 45,575,000 37,995,000
<br />On October 29, 2008, the City issued $5.6 million of Parks and Open Spaces General Obligation Bonds, Series
<br />2008, for the purpose of refunding $5,593,800 of the then-outstanding General Obligation Bond and Revolving
<br />Credit Facility. The 2008 bonds bear an interest rate of 5.1% with the final payment due December 1, 2018.
<br />The refunded credit facility’s interest rate was equal to the Prime Rate minus 2.50%, with the final payment due
<br />June 1, 2012.
<br />continued
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