COG Comprehensive Annual Financial Report

10. Lease-Purchase and Other Financing Agreements The City has entered into lease-purchase and other financing agreements for certain energy improvements, and land payable monthly and quarterly through 2026. Principal and interest requirements will be provided by an appropriation in the year in which they become due. The City has an outstanding Master Lease Agreement totaling $3,012,600 as of June 30, 2018, with PNC Bank for certain energy improvements, at a fixed tax-exempt rate of 4.38%, maturing in 2022. In addition, the City has in place a Master Lease agreement with Bank of America at a fixed interest rate of 3.765%, maturing in 2020. This agreement, of which $530,212 is outstanding as of June 30, 2018, was issued for Coliseum energy improvements. The City has a grand total of $3,542,812 in master lease agreements and installment financings to finance energy improvements. The City also has a total of $14,314,393 in capital leases primarily for information technology systems. In 2015, the City issued $3,578,000 HUD Section 108 Series 2015A notes and refinanced Series 2002A, 2003A and 2006 S. Elm Street interim notes. These notes bear interest at fixed rates ranging from 2.78 to 8.12% maturing in 2026. Total notes outstanding as of June 30, 2018 for HUD funding are $3,612,000 with an original commitment of $10,461,000. In July 2005, the City merged fire operation with Rural Fire District #14 located in eastern Guilford County and assumed an outstanding obligation of $422,898 at a fixed rate of 5.75% maturing in August 2019 which is collateralized by the District’s real property. The outstanding amount as of June 30, 2018 is $42,361.

Lease Purchase and Other Financing Agreements Debt Service Requirements to Maturity are:

Governmental Activities Annual Requirements

Business-Type Activities Annual Requirements

Fiscal Year

Principal

Interest

Principal

Interest

Total

2018-19 2019-20 2020-21 2021-22 2022-23 2023-26

$

4,396,075 $ 723,678 $

347,308 $

19,962 $ 5,487,023

3,841,131 3,367,667 3,157,959 1,474,552 4,743,970

565,454 425,595 268,068 199,640 268,974

182,904

3,443

4,592,932 3,793,262 3,426,027 1,674,192 5,012,944

$ 20,981,354 $ 2,451,409 $

530,212 $

23,405 $ 23,986,380

38ee