CAFR 2017

Table D-1 General Obligation, Limited Obligation, Special Obligation and Revenue Bonds – Outstanding Debt (in thousands of dollars)

Governmental

Business-Type

Activities

Activities

Total

2017

2016

2017

2016

2017

2016

$ 167,030 $ 137,950 $ $ $ 167,030 $ 137,950

General Obligation Bonds

18,497 11,323

31,023 1,057

General Obligation BANS 18,497 31,023

11,323 1,057 23,250 23,860

Limited Obligation Notes Limited Obligation Bonds

23,250 23,860

5,640

5,930 2,930

Certificates of Participation 5,640 5,930

2,250

2,930 2,250

Special Obligation Bonds

Revenue Bonds Revenue BANS

210,990 224,630 210,990

224,630 18,497

41,338

18,497 41,338

Total

$ 225,740 $ 199,820 $ 254,578 $ 246,057 $ 480,318 $ 445,877

The City’s total overall outstanding bonded long-term liabilities increased approximately $34.45 million during the current fiscal year due to additions to the City’s BANs for construction-related activity which were offset by scheduled debt service payments. As of June 2017, 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 $50 million Combined Enterprise System Revenue BAN, and a $20 million Limited Obligation Note. The notes mature in fiscal years 2019, 2020, and 2022 respectively and have associated variable interest rates. In FY 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 ($318,402) as of June 30, 2017. 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 $1,604,171,430. The City has $258,237,486 in authorized, but unissued bonds at June 30, 2017 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 $12.624 million for refunding bonds. Each referendum item was voted on separately. $18.5 million of this authorization was issued as bond anticipation notes as of June 30, 2017 for Parks and Recreation Facilities, and Street Improvements. More detailed information about the City’s long-term liabilities is presented in Note IV.G.

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