Comprehensive Annual Financial Report FY 2016

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

Governmental

Business-Type

Activities

Activities

Total

2016

2015

2016

2015

2016

2015

General Obligation Bonds

$ 137,950 $ 149,700 $ $ $ 137,950 $ 149,700

General Obligation BANS 31,023 13,635

31,023 1,057

13,635

Limited Obligation Notes Limited Obligation Bonds

1,057

23,860 24,450

23,860 24,450

Certificates of Participation 5,930 6,210

5,930

6,210 3,585

Special Obligation Bonds

2 ,930

3,585 2,930

Revenue Bonds Revenue BANS

224,630 207,790 224,630

207,790 14,075

18 ,497

14,075 18,497

Total

$ 199,820 $ 193,995 $ 246,057 $ 225,450 $ 445,877 $ 419,445

The City’s total overall outstanding bonded long-term liabilities increased approximately $26.4 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 2016, 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 2017, 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 ($566,943) as of June 30, 2016. 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 $1,714,218,530. The City has $166,370,000 in authorized, but unissued bonds at June 30, 2016 which includes $126.080 million for Street Improvements, $11.475 million for Parks and Recreational Facilities and $1 million for Housing Bonds, $12.478 million for Fire Stations, $1.23 million for Library Facilities, $4 million for Economic Development and $10.108 million for Greensboro Science Center Bonds. Each referendum item was voted on separately. $31 million of this authorization was issued as bond anticipation notes as of June 2016 for Parks and Recreation Facilities, Library Facilities, Street Improvements, Fire Stations and Neighborhood Development initiatives. More detailed information about the City’s long-term liabilities is presented in Note IV.G.

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