2020 Comprehensive Annual Financial Report

$506,736 in underwriting fees, accrued interest, call premium 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, the liabilities for a portion of the 1998A, 2001A and 2003A Series Revenue Bonds have been removed from the Water Resources Fund. The proceeds of these bonds were used for improvements to the City’s water and sanitary sewer system and other issue costs. The City has pledged 100% of future water and sewer customer revenues, net of specified operating expenses to the payment of and as security for the Revenue Bonds in the amounts shown below specifically to cover annual debt service through 2050. This pledge relates to all Combined Enterprise Revenue bonds outstanding, issued for the purpose of making water and sewer system improvements. Certain financial covenants are contained in the revenue bond order, among the most restrictive of which provide that the City maintain a long-term debt service coverage ratio, as defined, of not less than 1.50. Pledged revenues exceeded operating expenses by $53,399,474 to provide a coverage ratio of 2.13 at June 30, 2020. The City was in compliance with all such covenants during Fiscal Year 2019-20.

Revenue Bonds/Anticipation Notes Debt Service Requirements to Maturity are:

Business-Type Activities Annual Requirements

Fiscal Year

Principal

Interest

Total

2020-21 (1) 2021-22 (1)

$ 16,330,000 $ 10,932,552 $ 27,262,552

18,580,810 13,215,000 14,010,000 12,600,000 57,595,000 38,260,000 37,550,000 44,010,000 32,160,000

10,397,697 9,644,850 8,997,263 8,367,713 33,508,775 22,605,600 16,217,337 9,753,037 2,339,325

28,978,507 22,859,850 23,007,263 20,967,713 91,103,775 60,865,600 53,767,337 53,763,037

2022-23 2023-24 2024-25 2026-30 2031-35 2036-40 2041-45 2046-50

34,499,325 $ 284,310,810 $ 132,764,149 $ 417,074,959

(1) Includes Direct Placement Bond Anticipation Notes of $2,580,810, in prinicpal scheduled to mature in FY22 and $41,809 in interest for FY21 & FY22.

7. Lease-Purchase and Other Financing Agreements The City has entered into lease-purchase and other financing agreements for certain energy improvements, and land payable monthly and quarterly through 2026. Principal and interest requirements will be provided by an appropriation in the year in which they become due. The City has an outstanding direct placement Master Lease Agreement totaling $1,829,490 as of June 30, 2020, with PNC Bank for certain energy improvements, at a fixed tax-exempt rate of 4.38%, maturing in 2022. In addition, the City had a direct placement Master Lease agreement with Bank of America at a fixed interest rate of 3.765% that matured in FY20. This agreement was issued for Coliseum energy improvements. In the event of default of the Master Lease Agreement with PNC Bank City agrees to pay to the purchaser, on demand, interest on any and all amounts due and owing by the City under the related agreements. The City has a grand total of $1,829,490 in master lease agreements and installment financings to finance energy improvements. The City also has a total of $13,865,760 in capital leases primarily for information technology systems. In 2015, the City issued $3,578,000 HUD Section 108 Series 2015A notes and refinanced Series 2002A, 2003A and 2006 S. Elm Street interim notes. These notes bear interest at fixed rates ranging from 2.78 to 8.12% maturing in 2026. Total notes outstanding as of June 30, 2020 for HUD funding are $1,744,000 with an original commitment of $10,461,000. In

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