2023 Annual Comprehensive Report

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. 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. On January 28, 2021, the City issued $35,780,000 in Taxable Limited Obligation Bonds Series 2021 bearing interest payable semiannually at fixed rates from 0.20% to 2.68% on May 1 and November 1, with final maturity in FY2046. The proceeds of these bonds are being used to build a new downtown parking deck. On October 19, 2021, the City issued $22,705,000 in Taxable Limited Obligation Refunding Bonds (Coliseum Complex Project), Series 2021A bearing interest payable semiannually at fixed rates from 0.21% to 2.99% on April 1 and October 1, with final maturity in FY2040. The proceeds of these bonds were used to refund the Limited Obligation Tax-Exempt Bonds Series 2014 issued on October 7, 2014. The prior net cash flow was $29,326,778 and the net cash flow on the refunding bonds is $28,516,780. The net present value savings as a result of the refunding was $661,953. On October 19, 2021, the City issued $25,140,000 in Taxable Limited Obligation Refunding Bonds (Coliseum Complex Project), Series 2021B bearing interest payable semiannually at fixed rates from 0.23% to 3.05% on April 1 and October 1, with final maturity in FY2044. The proceeds of these bonds were used to refund the Limited Obligation Tax-Exempt Bond Series 2018A issued on November 1, 2018. The prior net cash flow was $35,316,838 and the net cash flow on the refunding bonds is $35,172,931. The net present value savings as a result of the refunding was $135,070. 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

2023-24 2024-25 2025-26 2026-27 2027-28 2029-33 2034-38 2039-43 2044-46

$ 3,120,000 $

1,836,838 $

3,590,000 $

2,989,850 $

11,536,688 11,514,497 11,483,057 11,454,116 11,440,656 55,602,349 53,149,455 46,218,024 11,156,330 223,555,172

3,175,000 3,225,000 3,300,000 3,375,000 16,740,000 16,690,000 12,155,000 1,745,000

1,760,764 1,677,559 1,579,723 1,484,590 5,974,887 3,564,521 1,173,418

3,655,000 3,730,000 3,805,000 3,900,000 21,065,000 24,400,000 28,745,000 9,010,000

2,923,733 2,850,498 2,769,393 2,681,066 11,822,462 8,494,934 4,144,606

53,223

348,107

$ 63,525,000 $ 19,105,523 $

101,900,000 $ 39,024,649 $

5. Combined Enterprise System Revenue Bonds and Anticipation Notes The City has participated in the capital markets by issuing over $500 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 2012 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

40z