COG Comprehensive Annual Financial Report

Table D-1 General Obligation, Limited Obligation, Special Obligation and Revenue Bonds – Outstanding Debt (in thousands of dollars) Governmental Bus ines s -Type Activities Activities Total 2018 2017 2018 2017 2018 2017

General Obligation Bonds General Obligation BANS Limited Obligation Notes Limited Obligation Bonds Certificates of Participation Special Obligation Bonds

$ 152,730 50,622 13,684 22,620 5,335

$ 167,030 18,497 11,323 23,250 5,640

$

$

$ 152,730 50,622 13,684 66,070

$ 167,030 18,497 11,323 23,250

43,450

5,335 1,535 257,785 8,553

5,640 2,250 210,990 41,338

1,535 257,785 8,553

2,250 210,990 41,338

Revenue Bonds Revenue BANS

Total

$ 244,991 $ 225,740 $ 311,323 $ 254,578 $

556,314 $ 480,318

The City’s total overall outstanding bonded long-term liabilities increased approximately $75.99 million during the current fiscal year due to additions to the City’s BANs for construction-related activity and the issuance of Limited Obligation Bonds to fund the City’s portion of the Steven Tanger Center for the Performing Arts which were offset by scheduled debt service payments. As of June 2018, the City had three outstanding construction period-type note agreements that provide a privately-placed commitment to fund capital projects as the expenditures are being incurred, effectively delaying actual long-term bond issuances for several more years. These commitments include a $50 million General Obligation BAN, a $85 million Combined Enterprise System Revenue BAN, and a $20 million Limited Obligation Note. The notes mature in fiscal years 2019, 2026, and 2022 respectively and have associated variable interest rates. The $85 million Revenue BAN will likely be refinanced in fiscal year 2020. The City also had two competitively placed General Obligation Bond Anticipation Notes issued in late fiscal year 2018 totaling $14.6 million to fund projects related to the City’s 2016 bond referendum, maturing in fiscal year 2019. In fiscal year 2014, the City’s Series 1994B variable rate general obligation swap matured, leaving $5.7 million in one “effective” hedging derivative instrument, which carried a negative mark-to-market valuation of ($136,592) as of June 30, 2018. The City of Greensboro has a general obligation bond rating of Aaa from Moody’s Investors Service and a AAA rating from both S&P Global Ratings and Fitch Ratings. These bond ratings are a clear indication of the sound financial condition of the City of Greensboro. Greensboro’s credit worthiness is a major factor in securing the highest possible general obligation bond rating. This credit worthiness, according to recent rating reports, is the result of diversifying businesses, a stable and consistent growth in the taxpayer base, the conservative fiscal policies for reserve and debt management and the operating performance, as well as financial flexibility. Other factors considered and affecting the high-grade credit position is the history of budgeting, the moderate debt position and the oversight provided by the North Carolina Local Government Commission. North Carolina general statutes limit the amount of general obligation debt that a unit of government can issue to 8 percent of the total assessed value of taxable property located within that government’s boundaries. The legal debt margin for the City of Greensboro is $1,743,122,415. The City has $259,112,486 in authorized, but unissued bonds at June 30, 2018 which includes $134.037 million for Street Improvements, $39.741 million for Parks and Recreational Facilities and $25.131 million for Housing Bonds, $38.5 million for Economic Development, $8.204 million for Greensboro Science Center Bonds and $13.5 million for refunding bonds. Each referendum item was voted on separately. $50.6 million of this authorization was issued as bond anticipation notes as of June 30, 2018 for Parks and 2v