Item 4C: Adoption of Resolution on FY12 CAFR

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CITY OF EUGENE, OREGON Notes to Basic Financial Statements (4) Detailed Notes on All Funds, continued (G) Operating Leases, continued The following is a schedule of future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of June 30, 2012: Fiscal year ending June 30Rentals 2013$1,647,671 20141,598,350 20151,306,157 20161,113,138 20171,058,985 Total minimum future rentals$6,724,301 (H) Noncurrent Liabilities 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 and unlimited taxing power 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, 2012, the City had 96% of capacity available. General Obligation Bond and Revolving Credit Facility (Street) On November 4, 2008, Eugene voters passed Measure 20-145, authorizing the City to issue a maximum of $35,900,000 of general obligation (G.O.) bonds. The proceeds from the sale of the bonds are to be used for street preservation. 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. As of June 30, 2012, the City had $15,250,000 in authorized borrowing remaining. The City has a G.O. and revolving credit facility with Bank of America, N.A. which matures on June 1, 2014 and has an authorized limit of $4,000,000. The City elects from either a LIBOR based taxable or tax exempt interest rate for each draw. As of June 30, 2012, the City had a $0 balance on the credit facility. Draws on this credit facility are recorded as a financing source in the Transportation 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 (Street and Off-Street Bike and Pedestrian Paths) is backed by the full faith and credit of the City and is included in the City’s G.O. debt limit. Beginning Ending Governmental activitiesbalanceIncreaseDecreasebalance G.O. bond and revolving credit facility (Street)$07,340,000(7,340,000)0 continued 59