2023 Annual Comprehensive Report

the defeased bonds are not reflected in the City’s financial Statements. At June 30, 2023, $103,980,000 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. On September 29, 2022, the City entered into two agreements with Truist Bank for direct placement Combined Enterprise System Revenue Bond Anticipation Notes drawdown program in the amount of $25,000,000 (Series 2022A) and $150,000,000 (Series 2022B). As of June 30, 2023, $5,328,800 has been drawn on Series 2022A and $45,466,650 has been drawn on Series 2022B for improvements to the City’s water and sewer systems. On June 28, 2022 the City issued $87,935,000 Series 2022A Combined Enterprise System Revenue Bonds payable semiannually at a fixed rate ranging from 3.63% to 5.00% on June 1 and December 1. The final maturity is June 1, 2052; the bond was issued to refund the variable rate 2020 Bond Anticipation Note and the Series 2012 Refunding bonds. The prior net cash flow was $9,488,250 and the net cash flow on the refunding bonds is $8,847,063. The net present value savings as a result of the refunding was $552,292. 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. An additional $26,365,453 was drawn down during FY2022 for improvements to the City’s water and sewer systems. The total outstanding balance of $63,021,999 was refunded with the Series 2022A Refunding CES bonds on June 28, 2022. 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 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

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