Laserfiche WebLink
CITY OF EUGENE, OREGON <br />Notes to Basic Financial Statements <br />(4) Detailed Notes on All Funds, continued <br /> (J) Noncurrent Liabilities, continued <br />Notes Payable <br />The City issues notes to finance major construction projects in governmental and business-type activities. The <br />Oregon Department of Environmental Quality (ODEQ) note pays interest at 4.07% and is secured by a pledge <br />of available net sewer revenues. <br />In July 2008, the City borrowed $2,706,000 from the U.S. Department of Housing and Urban Development <br />(HUD) to finance the purchase of the historic Washburne and Centre Court buildings in the Urban Renewal <br />Downtown District. The unsecured note pays interest at a variable rate equal to the three-month LIBOR rate <br />plus 0.2%. The rate adjusts monthly on the first day of each month. <br /> Loan Interest Ending <br />Governmental activitiesamount rates (%) balance <br />Notes payable: <br />Oregon Department of Environmental Quality - <br />Barger-Greenhill Pump Station and Force Main $ 2,962,344 4.070% 174,318 <br />Department of Housing and Urban Development - <br />Washburne and Centre Court Buildings 2,706,000 varies 2,706,000 <br />$5,668,3442,880,318 <br />Annual debt service requirements to maturity for notes payable are as follows: <br />Governmentalactivites <br />Fiscal year <br />ending June 30 Principal Interest <br />2010 $ 174,318 23,596 <br />2011 128,000 17,777 <br />2012 128,000 16,906 <br />2013 128,000 16,034 <br />2014 128,000 15,162 <br />2015-2019 640,000 62,733 <br />2020-2024 640,000 40,937 <br />2025-2028 914,000 15,005 <br /> $ 2,880,318 208,150 <br />The ODEQ note will be repaid from system development receipts collected in the Systems Development <br />Capital Projects Fund. The note includes a coverage requirement to maintain sewer rates sufficient to <br />generate net revenues that maintain a debt service coverage factor of 1.05. At June 30, 2009, the coverage <br />factor for the ODEQ note was 3.70. <br />The HUD note will be repaid from principal and interest payments received from a loan to BEAM Development, <br />who purchased the property from the City. The loan proceeds from the BEAM Development loan will be <br />received in the Community Development Special Revenue Fund. <br />continued <br />