Item 3C: Adoption of Resolution Acknowledging Receipt of the FY10 CAFR

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CITY OF EUGENE, OREGON Notes to Basic Financial Statements (4) Detailed Notes on All Funds, continued (I) Current Liabilities, continued General Obligation Bond and Revolving Credit Facility, continued Beginning Ending Governmental activitiesbalanceIncreaseDecreasebalance G.O. street bond and revolving credit facility (Street)$485,0006,015,000(6,500,000)0 (J) Noncurrent Liabilities General Obligation Bond and Revolving Credit Facility On November 7, 2006, Eugene voters passed Measure 20-110, authorizing the City to issue a maximum of $27,490,000 of general obligation (G.O.) bonds. The proceeds from the sale of the bonds are to be used for the purchase of land for parks and open space, and the construction and improvement of athletic fields and the West Eugene Wetlands Education Center. The City can issue the bonds in one or more series. The bonds can be issued to provide interim financing and to refund the bonds that provide interim financing. On May 13, 2007, the City entered into a General Obligation Bond and Revolving Credit Facility with Bank of America, N.A. currently bearing interest at 0.75% with a maturity date of June 1, 2012. The facility has an authorized limit of $6,875,000 and is further limited to $27,490,000 less the amount of any general obligation bonds issued for the purpose of repaying the credit facility. As of June 30, 2010, the City had a $684,414 balance on the credit facility with $16,013,000 in authorized borrowing remaining. Draws on this credit facility are recorded as a financing source in the General Capital Projects Fund. The debt will be repaid from general property tax revenues or by the future issuance of long-term general obligation bonds, which can be issued at the City’s discretion. The General Obligation Bond and Revolving Credit Facility is backed by the full faith and credit of the City and is included in the City’s G.O. bonded debt margin limit. Beginning Ending Governmental activitiesbalanceIncreaseDecreasebalance G.O. bond and revolving credit facility (POS)$1,696,200500,000(1,511,786)684,414 General Obligation Bonds The City issues general obligation bonds to finance major construction projects in governmental and business- type activities. G.O. bonds in governmental activities are backed by the full faith and credit of the City and are serviced by general property tax revenues. The City’s G.O. bonded debt is subject to a debt margin of 3% of real market value per Oregon Revised Statutes 287.004. For the year ended June 30, 2010, the City had 95% of capacity available. G.O. bonds currently outstanding are as follows: continued