2019 Comprehensive Annual Financial Report (CAFR)

3 The General Fund primarily is used to liquidate the liabilities for the net pension liability and other post-employment benefits associated with governmental activities. Debt obligations recorded in the Coliseum Enterprise Fund, not contemplated to be repaid with the Fund’s own resources, are reported as general government debt for financial reporting purposes, according to guidance in NCGAS Statement No. 1.

Ending Balance

Internal Service Funds: Bonds and Notes Payable:

General Obligation Bonds Payable

$ 438,932

Premium - General Obligation Bonds Payable

37,787 476,719

Total Debt Payable

Other Liabilities:

Capital Leases

13,577,742 2,450,400

Direct Placement Financing Agreements

Compensated Absences

999,484

Pension & OPEB

11,081,569

Internal Service Fund Long-TermLiability

$ 28,585,914

Hedging Derivatives and Associated Hedged Debt Using rates as of June 30, 2019, debt service requirements of the variable-rate debt and net swap payments assuming current interest rates remain the same for the term, were as follows. As rates vary, variable-rate bond interest payments and net swap payments will vary. The hedging derivative instruments column reflects only net receipts/payments on derivative instruments that qualify for hedge accounting.

FYEnding

Variable Rate Bonds

Interest Rate Swaps

Interest (1)

Net (2)

June 30

Principal

Total

2020

$ 2,960,000 $

58,608

$

54,772

$

3,073,380

(1) Computed at 1.98% at June 30, 2019 (2) Computed at 3.46% less 67% of 1 Month LIBOR (1.61%) at June 30, 2019 Derivative Instrument Summary At June 30, 2019 the City had the following hedging derivative instrument outstanding:

Changes in Fair Value

Notional Amount

Effective Maturity

Fair Value at 6/30/19

Classification

Amount

Date

Date

Classification

Amount

Governmental Activities:

Objective: Hedge of changes in cash flows on the 1998 Series GO Bonds specifically related to changes in municipal tax-exempt interest rates.

Cash Flow Hedges

Pay-fixed interest rate swaps, receive variable rate

Deferred Outflow

$

83,697

$ 5,700,000 10/8/2002 4/1/2020

Debt

$

(52,895)

37gg