COG Comprehensive Annual Financial Report

1. General Governmental Improvement General Obligation Bonds/Anticipation Notes These outstanding tax-exempt and taxable bonds bear interest, payable monthly, at variable rates along with interest payable semi-annually at fixed rates from 2.00% to 5.00%. The outstanding tax-exempt and taxable variable rate bonds are reported at 1.27%, and 2.0%, respectively as of June 30, 2018. Principal is payable annually in varying amounts through 2037. On April 12, 2017, the City entered into an agreement with PNC Bank, National Association for a General Obligation Bond Anticipation Note drawdown program in the amount of $50,000,000. As of June 30, 2018 $36,051,922 has been drawn down for improvements at the Greensboro Science Center, Street Improvements and Parks and Recreation Facilities. The note bears variable interest at 68.5% of 1 Month LIBOR plus 32 basis points and matures on November 1, 2018. On June 28, 2018, the City entered into agreements with Oppenheimer & Co., Inc. and Wells Fargo Bank, N.A. for taxable and non-taxable General Obligation Bond Anticipation Note drawdown programs for $14,570,000 with $5,325,000 being taxable and $9,245,000 being non-taxable. The original issue premium amounted to $41,668. As of June 30, 2018, $2,412,135 of the non-taxable funds has been spent for Parks and Recreation, Transportation, and Community & Economic Development projects. The non-taxable note bears 3.00% interest per year and matures on October 18, 2018. As of June 30, 2018, $99,451 of the taxable funds has been spent for housing projects. The taxable note bears 3.25% interest per year and matures on October 18, 2018. General Obligation Bonds $151,885,000 Bond Anticipation Notes Payable 50,621,922 202,806,922 2. Internal Services Improvement General Obligation Bonds This obligation, issued in 1998, relates to a public safety communications system and is recorded in the Technical Services Fund. Debt service will be covered by fees charged to other internal departments. General Obligation Bonds 845,000 Total $203,351,922 3. Limited Obligation Notes On May 17, 2016, the City entered into an agreement with Wells Fargo Bank, N.A. for Limited Obligation Notes in the amount of $20,000,000, for coliseum improvements with a principal amount of $14,000,000 being non-taxable and $6,000,000 being taxable. As of June 30, 2018, $7,802,235 has been drawn down on the non-taxable portion of the note and $5,881,781 has been drawn on the taxable portion. The non-taxable and taxable notes bear variable interest of 70% of 1 Month LIBOR plus 40 basis points and 1 Month LIBOR plus 50 basis points, respectively, and mature May 2022. 4. 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, 2018, $25,320,000 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 173 - 176.

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