2022 Annual Comprehensive Financial Report

K. Long-Term Debt Long-term Bonded Debt of the City consists of General Obligation Bonds, which are collateralized by the full faith, credit and taxing power of the City and are issued for both general governmental improvements. The City’s legal debt margin as of June 30, 2022 is $1,621,614,156. Long-term Bonded Debt consists of the following: 1. General Governmental Improvement General Obligation Bonds These outstanding tax-exempt and taxable bonds bear interest, payable monthly at fixed rates from 2.00% to 5.00%. Principal is payable annually in varying amounts through 2040.

General Obligation Bonds

$252,595,000

2. Defeased Bonds In prior years, the City defeased General Obligation Bonds by placing the proceeds of 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 included in the City’s financial statements. At June 30, 2022, $47,930,000 of General Obligation Bonds outstanding are considered defeased. For details of all General Obligation outstanding bond issues refer to the Schedule of General Long Term Debt on pages 179-182.

3. General Obligation Bonds Debt Service Requirements to Maturity are:

Governmental Activities Annual Requirements

Total

Principal 21,285,000 19,250,000 19,305,000 19,200,000 18,000,000 74,675,000 59,685,000 21,195,000 252,595,000

Interest

Fiscal Year

2022-23 2023-24 2024-25 2025-26 2026-27 2028-32 2033-37 2038-40

$

$

9,832,195 8,997,581 8,240,193 7,394,593 6,508,745 21,565,900 8,723,763

$

31,117,195 28,247,581 27,545,193 26,594,593 24,508,745 96,240,900 68,408,763 22,026,601 324,689,571

831,601

$

$

72,094,571

$

4. Limited Obligation Bonds On February 14, 2018, the City issued $43,450,000 in Limited Obligation Bonds Series 2018 bearing interest payable semiannually at fixed rates from 2.0% to 4.0% on February 1 and August 1, with final maturity in 2043. The proceeds of 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 October 29, 2019, the City issued $29,685,000 in Taxable 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 were used to build a new downtown parking deck.

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