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 (H) Noncurrent Liabilities, continued Tax Increment Bonds, continued Annual debt service requirements to maturity for tax increment bonds are as follows: Governmental activities Fiscal year ending June 30PrincipalInterest 2013$754,000373,516 2014794,000334,308 2015835,000293,020 2016878,000249,600 2017924,000203,944 2018-20202,998,000313,404 $7,183,0001,767,792 Conduit Debt On December 27, 2010, the City issued $6.9 million of Bank Loan Revenue Bonds, dated December 30, 2010, bearing a variable interest rate, and maturing on December 27, 2035. The bonds were issued to provide access to tax-exempt interest rates to Woolworth Properties, LLC for the construction of the Bennett Building, which is located within the City’s Urban Renewal Downtown District. The City is not obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of June 30, 2012, $6.9 million of the bonds were outstanding. Notes Payable The City has entered into contracts with the U.S. Department of Housing and Urban Development (HUD) as a guarantor for loan guarantees made under HUD’s Section 108 Loan Guarantee Program (Program). The Program is a source of financing for economic development. HUD contracts for loan guarantee assistance contain certain security provisions. The primary security is a pledge by the City of its current and future Community Development Block Grant funds. The City provides additional security for each Guaranteed Loan in the form of property liens. In July 2008, the City borrowed $2,706,000 from HUD to finance the purchase of the historic Washburne and Centre Court buildings in the Urban Renewal Downtown District. The note pays interest at a variable rate equal to the three-month LIBOR rate plus 0.2%. The rate adjusts on the first day of each month. On November 16, 2010, the City entered into a contract with HUD to borrow $5,189,000 to support the rehabilitation of the historic Washburne and Centre Court buildings in the Urban Renewal Downtown District. The note pays interest at a variable rate equal to the three-month LIBOR rate plus 0.2%. The rate adjusts on the first day of each month. continued 65