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G.
Long-Term Debt
Long-term Bonded Debt of the City consists of General Obligation Bonds, which are collateralized by the full faith, credit
and taxing power of the City and are issued for both general governmental improvements and for Proprietary Fund purposes.
The City’s legal debt margin as of June 30, 2016 is $1,714,218,530. Long-term Bonded Debt consists of the following:
1. General Governmental Improvement General Obligation Bonds/Anticipation Notes
These outstanding tax-exempt and taxable bonds bear interest, payable monthly, at variable rates along with interest
payable semi-annually at fixed rates from 2.00% to 5.00%. The outstanding tax-exempt and taxable variable rate bonds
are reported at .43%, and .42%, respectively as of June 30, 2016. Principal is payable annually in varying amounts
through 2034.
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. As of June 30, 2016, $31,023,007 has been drawn
down for improvements at the Greensboro Science Center, Reedy Fork Fire Station, Library Facilities, Street
Improvements, Parks and Recreation Facilities, and Affordable Housing. The note bears variable interest at 70% of 1
Month LIBOR plus 35 basis points and matures on November 1, 2016.
General Obligation Bonds
$136,330,128
Bond Anticipation Notes Payable
31,023,007
167,353,135
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
1,619,872
Total $168,973,007
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. 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, 2016, $20,905,000 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 163 - 166.