CAFR 2017

are reported at .80%, and 1.13%, respectively as of June 30, 2017. Principal is payable annually in varying amounts through 2037. On March 18, 2014, the City entered into an agreement with Wells Fargo Bank, N.A. for a General Obligation Bond Anticipation Note drawdown program in the amount of $50,000,000. The note bears variable interest of 70% of 1 Month LIBOR plus 35 basis points and were scheduled to mature November 1, 2016. The notes were redeemed on October 20, 2016 and General Obligation Bonds were issued in the amount of $43,460,000 with an original issue premium of $6,904,823 to fund the payoff of the $50,000,000 General Obligation Bond Anticipation Note that was used in addition to cost of issuance. On October 20, 2016, the City issued $62,590,000 Series 2016 General Obligation Refunding Bonds payable semiannually at a fixed rate of 2.75% to 5.00% on February 1 and August 1, with a final maturity in 2037. The original issue premium amounted to $10,276,032. These bonds were issued to defease $21,520,000, a portion of General Obligation Public Improvement Bonds Series 2006A, Series 2008A and $43,460,000 of General Obligation Public Improvement Bond Anticipation Notes, Series 2014. The Series 2006A and 2008A refunded bonds aggregated difference in the debt service between the refunded debt of $26,346,788 and the refunding debt of $23,726,721 is $2,620,067. The net proceeds for the refunded General Obligation Public Improvement bonds, 2008A are $17,561,691 (after payment of $120,698 in underwriting and other issuance cost). This amount was placed into escrow in an irrevocable trust to provide for all future debt service payments of the old certificates. The net present value savings as a result of the refunding was $2,209,358. 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, 2017 $18,497,315 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. 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 1,242,334 Total $185,527,315 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, 2017, $5,489,744 has been drawn down on the non-taxable portion of the note and $5,833,372 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, 2017, $31,470,000 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. General Obligation Bonds Bond Anticipation Notes Payable $165,787,666 18,497,315 184,294,981

38y