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CITY OF EUGENE, OREGON
<br />Notes to Basic Financial Statements
<br />(4) Detailed Notes on All Funds, continued
<br /> (H) Noncurrent Liabilities, continued
<br /> General Obligation Bond and Revolving Credit Facility (POS)
<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. As of June 30,
<br />2012, the City had $12,338,800 in authorized borrowing remaining.
<br />On May 31, 2007, the City entered into a General Obligation Bond and Revolving Credit Facility with Bank of
<br />America, N.A. currently bearing interest at 0.75% with a maturity date of June 1, 2014. The facility has an
<br />authorized limit of $6,875,000 outstanding at any given time and is further limited to a maximum of the amount
<br />authorized under the bond measure. As of June 30, 2012, the City had a $0 balance on the credit facility.
<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 />(Parks, Athletic Fields, and Open Spaces) is backed by the full faith and credit of the City and is included in the
<br />City’s G.O. bonded debt margin limit.
<br /> Beginning Ending
<br />balanceIncreaseDecreasebalance
<br />Governmental activities
<br /> G.O. bond and revolving credit
<br /> facility (POS)$1,574,1641,200,000(2,774,164)0
<br />General Obligation Refunding Bonds
<br />On December 1, 2011, the City issued $10,975,000 of General Obligation Refunding Bonds, Series 2011,
<br />bearing a fixed interest rate of 2.0% to 3.0%, and maturing on June 1, 2022. The bonds were sold at a
<br />premium of $489,606. The proceeds of the Bonds were used to refund $5,430,000 of the Fire Projects Bonds,
<br />Series 2002, $4,431,000 of the Parks and Open Spaces Bonds, Series 2008, and $1,400,000 of the General
<br />Obligation Bond and Revolving Credit Facility obligation.
<br />The refunding of the Fire Projects Bonds, Series 2002, the Parks and Open Spaces Bonds, Series 2008, and
<br />the General Obligation Bond and Revolving Credit Facility obligation resulted in an economic gain and a net
<br />savings as a result of the refunding. The economic gain realized in this refunding was $1,030,000 and the net
<br />savings resulting from the refunding was as follows:
<br />Cash flow requirements to service old debt$13,383,123
<br />Less: Cash flow requirements for new debt(12,393,138)
<br />Net cash from refunding$989,985
<br />continued
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