Item 3C: Resolution on FY11 CAFR

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CITY OF EUGENE, OREGON Notes to Basic Financial Statements (4) Detailed Notes on All Funds, continued (I) Noncurrent Liabilities, continued General Obligation Bond and Revolving Credit Facility (Street), continued Beginning Ending balanceIncreaseDecreasebalance Governmental activities G.O. bond and revolving credit facility (Street)$06,810,000(6,810,000)0 General Obligation Bond and Revolving Credit Facility (POS) 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 31, 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 outstanding at any given time and is further limited to a maximum of the amount authorized under the bond measure. As of June 30, 2011, the City had a $1,574,164 balance on the credit facility with $13,538,800 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 balanceIncreaseDecreasebalance Governmental activities G.O. bond and revolving credit facility (POS)$684,4142,475,000(1,585,250)1,574,164 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 limit of 3% of real market value per Oregon Revised Statutes 287A.050. For the year ended June 30, 2011, the City had 95% of capacity available. G.O. bonds currently outstanding are as follows: continued 60