2020 Comprehensive Annual Financial Report

these bonds were used to retire the 2014 Installment Financing Agreements with PNC Bank issued in November 2014, and additional proceeds needed for acquiring, constructing and equipping the Steven Tanger Center for the Performing Arts. On November 1, 2018 the City issued $20,645,000 tax-exempt Limited Obligation Bonds Series 2018A bearing interest payable semiannually at fixed rates of 3.25% to 5.00% on April 1 and October 1, with final maturity in 2044. On November 1, 2018, the City issued $11,450,000 taxable Limited Obligation Bonds Series 2018B bearing interest payable semiannually at fixed rates of 3.32% to 4.31% on April 1 and October 1, with a final maturity in 2031. The proceeds of the Series 2018 bonds were used together with any other available funds to repay the 2016 limited obligation notes, prepay the outstanding 2010 Certificates of Participation and pay for additional improvements to the City’s Coliseum Complex. On October 29, 2019, the City issued $29,685,000 in Limited Obligation Bonds Series 2019 bearing interest payable semiannually at fixed rates from 1.88% to 3.51% on May 1 and November 1, with final maturity in 2044. The proceeds of these bonds are being used to build a new downtown parking deck. On February 27, 2020, the City issued $12,755,000 in Limited Obligation Bonds Series 2020A bearing interest payable semiannually at fixed rates from 2.25% to 5.00 on May 1 and November 1, with final maturity in 2039. The proceeds are being used to fund two new fire stations as well as improved firefighting training facilities and equipment. The property is pledged as collateral for the debt while the debt is outstanding. In the event of default, the City agrees to pay to the purchaser, on demand, interest on any and all amounts due and owing by the City under the related Limited Obligation Bond agreement.

Governmental Activities Annual Requirements

Business-Type Activities Annual Requirements

Fiscal Year

Principal

Interest

Principal

Interest

Total

2020-21 2021-22 2022-23 2023-24 2024-25 2026-30 2031-35 2036-40 2041-44

$ 2,385,000 $ 2,723,248 $ 1,280,000 $ 2,478,266 $ 8,866,514

2,445,000 2,495,000 2,575,000 2,660,000 14,610,000 14,695,000 16,775,000 6,495,000

2,627,526 2,543,261 2,434,115 2,326,395 9,906,654 6,824,446 3,489,059

2,210,000 2,260,000 2,320,000 2,385,000 13,010,000 15,290,000 18,260,000 16,120,000

2,436,633 2,382,766 2,324,868 2,262,593 10,215,470 7,937,434 4,971,162 1,373,510

9,719,159 9,681,027 9,653,983 9,633,988 47,742,124 44,746,880 43,495,221

711,400 24,699,910 $ 65,135,000 $ 33,586,104 $ 73,135,000 $ 36,382,702 $ 208,238,806

5. Special Obligation Bonds On November 17, 2005, the City issued $8,400,000 in Special Obligation Bonds Series 2005 bearing interest payable semiannually at fixed rates from 3.75% to 5.0% on June 1 and December 1. The final maturity occurred in FY2020. The original issue premium amounted to $224,026. The proceeds of these bonds were used for the construction of a solid waste transfer station along with related equipment and improvements. 6. Combined Enterprise System Revenue Bonds and Anticipation Notes The City has participated in the capital markets by issuing over $400 million Combined Enterprise System Revenue Bonds since 1995, to fund the on-going capital improvement program of the City’s water and sanitary sewer utility. Certain maturities of the debt through 2009 have been defeased, by placing the proceeds of the new bonds in an irrevocable trust to provide for all future debt service payments on the old debt. Accordingly, the trust account assets and the liability for the defeased bonds are not reflected in the City’s financial Statements. At June 30, 2020, $149,640,000 of Combined Enterprise System Revenue Bonds is considered defeased. The Combined Enterprise System is currently comprised of only the City’s water and sanitary sewer system. Principal and interest requirements will be provided by an appropriation in the year in which they become due. In the event of default, the City agrees to pay to the purchaser, on demand, interest on any and all amounts due and owing by the City under the related Revenue Bonds or Note agreements. 37aa