2020 Comprehensive Annual Financial Report

On June 25, 2020 the City issued $116,290,000 Series 2020A Combined Enterprise System Revenue Bonds payable semiannually at a fixed rate ranging from 2.13% to 5.00% on June 1 and December 1. The final maturity is June 1, 2050; the bond was issued to refund the variable rate 2018 Bond Anticipation Note and the variable rate Series 2014A Refunding bonds. On June 30, 2020 the City entered into an agreement with PNC Bank, N.A. for a direct placement Combined Enterprise System Revenue Bond Anticipation Note drawdown program in the amount of $85,000,000. As of June 30, 2020, $2,580,810 has been drawn down for improvements to the City’s water and sewer systems. On June 14, 2018 the City entered into an agreement with PNC Bank, N.A. for a direct placement Combined Enterprise System Revenue Bond Anticipation Note drawdown program in the amount of $85,000,000. An additional $34,941,757 was drawn down during FY2020 for improvements to the City’s water and sewer systems. The total outstanding balance of $72,113,546 was refunded with the Series 2020A Refunding CES bonds on June 25, 2020. On August 17, 2017, the City issued $90,690,000 Series 2017 A&B Refunding Combined Enterprise System Revenue Bonds payable semiannually at a fixed rate ranging from 3.25% to 5.0% on June 1 and December 1. The $64,700,000 Series 2017A matures on June 1, 2047; the bond was issued to redeem in whole $43,316,551 of the City’s Combined Enterprise System Revenue Bond Anticipation Note, Series 2016, and the remaining cost of improvements of the 2017 Water & Sewer projects. The $25,990,000 Series 2017B matures on December 1, 2030; the bond was issued to defease $29,600,000 of the City’s Combined Enterprise System Revenue Green Bonds, Series 2009A. The net proceeds of $31,673,412 (after payment of $701,122 in underwriting fees and other issuance cost) were placed in escrow in an irrevocable trust to provide for all future debt service payments on the old certificates. As a result, a portion of the liability for the 2016 Bond Anticipation Note and 2009A Series has been removed from the Water Resources Fund. On February 1, 2016, the City issued $29,310,000 Series 2016 Refunding Combined Enterprise System Revenue Bonds payable semiannually at a fixed rate ranging from 2.0% - 5.0% on June 1 and December 1, with a final maturity in 2045. This bond was issued to redeem in whole the City’s Combined Enterprise System Revenue Bond Anticipation Note Series 2014 which had an outstanding principal amount of $30,000,000 and has been removed from the Water Resources Fund. On June 23, 2015, the City issued $33,985,000 Series 2015 Refunding Combined Enterprise System Revenue Bonds payable semiannually at a fixed rate ranging from 3.0% - 5.0% on June 1 and December 1, with a final maturity in 2029. This bond was issued to defease $35,810,000 of certain Series 2007A and 2014A Combined Enterprise System Revenue Bonds. The net proceeds of $37,983,527 (after payment of $439,177 in underwriting fees and other issuance cost) were placed in escrow in an irrevocable trust to provide for all future debt service payments on the old certificates. As a result, a portion of the liability for the 2007A and 2014A Series Revenue Bonds have been removed from the Water Resources Fund. On July 23, 2014 the City issued $70,665,000 Series 2014A Refunding Combined Enterprise System Revenue Bonds payable monthly at a variable rate reported of 1.70% at June 30, 2019, with a final maturity in 2034. The bond was issued to defease $70,190,000 of certain Series 1998B, 2001B, 2003B, 2005B, 2007B, and 2009B variable rate bonds. The net proceeds of $70,190,000, after payment of $475,000 in underwriting and other issuance cost, were placed in escrow in an irrevocable trust to provide for all future debt payments on defeased certificates. As a result, the 1998B, 2001B, 2003B, 2005B, 2007B and 2009B Series Revenue Bonds have been removed from the Water Resources Fund. On May 23, 2012, the City issued $35,185,000 Series 2012A Refunding Combined Enterprise System Revenue Bonds payable semiannually at a fixed rate ranging from 3.0% - 5.0% on June 1 and December 1, with a final maturity in 2027. This bond was issued to defease $40,885,000 of certain Series 2005A and 2005B Combined Enterprise System Revenue Bonds. The net proceeds of $41,599,354 (after payment of $482,377 in underwriting fees and other issuance cost) were placed in escrow in an irrevocable trust to provide for all future debt service payments on the old certificates. As a result, a portion of the liability for the 2005 Series Revenue Bonds has been removed from the Water Resources Fund. The proceeds of these bonds, along with the $3,200,000 received from the origination of Series 2012B federally taxable Combined Enterprise System Revenue Refunding Bonds, were used to terminate the associated 2005B interest rate swap agreement. On December 7, 2006, the City issued $49,480,000 Series 2006 Refunding Combined Enterprise System Revenue Bonds at a fixed rate of 4.0% to 5.25% with a final maturity in 2025. These bonds were issued to defease a portion of Combined Enterprise System Bond Series 1998A, 2001A and 2003A. The amounts were refunded at $13,820,000, $19,290,000 and $19,150,000, respectively for a total defeasance of $52,260,000. The net proceeds of $54,971,117 (after payment of 37bb