CAFR 2017

9. Certificates of Participation In September 2010, the Greensboro Center City Corporation (GCCC) issued $7,000,000 Certificates of Participation payable annually at a fixed rate of 3.0% to 5.25% through FY 2031. Pursuant to installment purchase agreements, the City will make installment payments sufficient to pay the scheduled debt service on all certificates. Principal and interest requirements will be provided by appropriation in the year in which they become due. These payments will be appropriated in the Hotel/Motel Occupancy Tax Special Revenue Fund. Certificates were issued for the Coliseum Complex Aquatic Center purposes. Certificates of Participation of the GCCC have been issued in prior years for parking facilities, expansion and improvements to the War Memorial Coliseum Complex, and equipment purchases. All certificates are matured, except those relating to the Coliseum Complex – Aquatic Center. Principal is payable annually in varying amounts through FY 2031. Certificates of Participation Debt Service Requirements to Maturity are:

Governmental Activities Annual Requirements

Fiscal Year

Principal

Interest

Total

2017-18 2018-19 2019-20 2020-21 2021-22 2022-27 2027-31

$

305,000 315,000 330,000 340,000 355,000

$

259,175 246,975 234,375 221,175 207,575 813,463 267,751

$

564,175 561,975 564,375 561,175 562,575

2,005,000 1,990,000 5,640,000

2,818,463 2,257,751 7,890,489

$

$

2,250,489

$

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 entered into a $30,000,000 Installment Financing Agreement with PNC Bank in November 2014 for the purchase of land and improvements for the Steven B. Tanger Center for the Performing Arts. The outstanding balance of $12,160,940 includes the retirement of another short-term Master Installment Agreement of $11,500,000 entered into in FY 2013-2014 with Bank of America for project land acquisition. The current Installment Financing Agreement bears interest at 68.5% of 1 Month LIBOR plus 42 basis points, maturing in 2018. The City has an outstanding Master Lease Agreement totaling $3,520,260 as of June 30, 2017, 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 $854,609 is outstanding as of June 30, 2017, was issued for Coliseum energy improvements. The City has a grand total of $16,535,809 in master lease agreements and installment financings to finance energy improvements, property acquisitions, and other improvements. The City also has a total of $15,045,455 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, 2017 for HUD funding are $4,222,000 with an original commitment of $10,461,000.

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