2020 Comprehensive Annual Financial Report

B. Long-Term Debt As of June 30, 2020, the City had total bonded debt outstanding (at par) of $726,260,810 with $303,680,000 backed by the full faith, credit and taxing power of the City, $52,380,000 backed by Hotel/Motel occupancy tax of the City, $43,450,000 backed by Tanger Center parking fees, ticket fees, and hotel motel tax from the county, $29,685,000 backed by revenue generated from parking fees and property and sales tax generated from the new downtown development, $12,755,000 backed by property tax revenue, $284,310,810 backed by a revenue pledge of the Combined Enterprise System (currently Water Resources utility system). Table D-1 General Obligation, Limited Obligation, Special Obligation and Revenue Bonds – Outstanding Debt (In thousands of dollars)

Governmental

Business-Type

Activities

Activities

Total

2020

2019

2020

2019

2020

2019

General Obligation Bonds Limited Obligation Bonds Special Obligation Bonds

$ 303,680 65,135

$ 284,005 54,060

$

$

$ 303,680 138,270

$ 284,005 97,510 785 241,650 37,172

73,135

43,450 785 241,650 37,172

Revenue Bonds Revenue BANS

281,730 2,581

281,730 2,581

Total

$ 368,815 $ 338,065 $ 357,446 $ 323,057 $ 726,261 $ 661,122

The City’s total overall outstanding bonded long-term liabilities increased approximately $65.1 million during the current fiscal year due to the issuance of $76.6 million General Obligation Bonds for public improvements, $12.8 million of Limited Obligation Bonds related to construction of two fire stations, $29.7 million of Limited Obligations Bonds related to construction of the Eugene Street Parking Deck, and $116.3 million of Combined Enterprise System Revenue Bonds. As of June 30, 2020 the City had one outstanding construction period type note agreement that provides a privately placed commitment to fund capital projects as the expenditures are being incurred, effectively delaying actual long-term debt issuances for several years. An $85 million Combined Enterprise System Revenue BAN has a variable interest rate and will be refinanced in fiscal year 2022. The City of Greensboro has a general obligation bond rating of Aaa from Moody’s Investors Service and a AAA rating from both S&P Global Ratings and Fitch Ratings. These bond ratings are a clear indication of the sound financial condition of the City of Greensboro. Greensboro’s credit worthiness is a major factor in securing the highest possible general obligation bond rating. This credit worthiness, according to recent rating reports, is the result of diversifying businesses, a stable and consistent growth in the taxpayer base, the conservative fiscal policies for reserve and debt management and the operating performance, as well as financial flexibility. Other factors considered and affecting the high-grade credit position is the history of budgeting, the moderate debt position and the oversight provided by the North Carolina Local Government Commission. North Carolina general statutes limit the amount of general obligation debt that a unit of government can issue to 8 percent of the total assessed value of taxable property located within that government’s boundaries. The legal debt margin for the City of Greensboro is $1,916,450,559. The City has $43,785,000 in authorized, but unissued bonds at June 30, 2020 which includes $9.955 million for Transportation Bonds, $12.595 million for Parks and Recreational Facilities, $6.600 million for Housing 2v