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On June 1, 2009, the City issued $43,180,000 Series 2009A Enterprise System Revenue Bonds payable semiannually at
a fixed rate ranging from 3.5% to 5.0% on June 1 and December 1, with a final maturity in 2031. In addition, the City
issued $10,000,000 in 2009B variable rate Combined Enterprise System Revenue Bonds with interest payable monthly
through 2034. The original issue premium amounted to $1,547,280. The proceeds of these bonds have been used for
improvements to the City of Greensboro’s water system.
In June 2007, the City issued $38,040,000 2007A Combined Enterprise System Revenue Bonds payable semiannually at
a fixed rate ranging from 4.0% to 5.0% on June 1 and December 1, with a final maturity in 2029. The City also issued
$10,000,000 in 2007B variable rate Combined Enterprise System Revenue Bonds with interest payable monthly through
2032. The original issue premium amounted to $536,101. The proceeds of these bonds have been used for
improvements to the City’s water and sanitary sewer system. Also, refer to the 2015 Refunding Bonds.
On December 7, 2006, the City issued $49,480,000 Series 2006 Refunding Combined Enterprise System Revenue Bonds
at a fixed rate of 4.0% to 5.25% with a final maturity in 2025. These bonds were issued to defease a portion of
Combined Enterprise System Bond Series 1998A, 2001A and 2003A. The amounts were refunded at $13,820,000,
$19,290,000 and $19,150,000, respectively for a total defeasance of $52,260,000. The aggregate difference in debt
service between the refunded debt net cash flow of $84,860,919 and the refunding debt net cash flow of $81,028,550
is $3,832,369. The net proceeds of $54,971,117 (after payment of $506,736 in underwriting fees, accrued interest, call
premium and other issuance cost) were placed in escrow in an irrevocable trust to provide for all future debt service
payments on the old certificates. The net present value interest savings as a result of the refunding was $2,557,141. As
a result, the liabilities for a portion of the 1998A, 2001A and 2003A Series Revenue Bonds have been removed from the
Water Resources Fund. The proceeds of these bonds were used for improvements to the City’s water and sanitary sewer
system and other issue costs.
The City has pledged 100% of future water and sewer customer revenues, net of specified operating expenses to the
payment of and as security for the Revenue Bonds in the amounts shown below specifically to cover annual debt service
through 2045. This pledge relates to all Combined Enterprise Revenue bonds outstanding, issued for the purpose of
making water and sewer system improvements. Certain financial covenants are contained in the revenue bond order,
among the most restrictive of which provide that the City maintain a long-term debt service coverage ratio, as defined, of
not less than 1.50. Pledged revenues exceeded operating expenses by $47,868,717 to provide a coverage ratio of 2.41 at
June 30, 2016. The City was in compliance with all such covenants during Fiscal Year 2015-16.
Revenue Bonds/Anticipation Notes Debt Service Requirements to Maturity are:
Fiscal Year
Principal
(1)
Interest
Total
2016-17
13,640,000
$
8,033,296
$
21,673,296
$
2017-18
14,295,000
7,433,513
21,728,513
2018-19
14,995,000
6,729,713
21,724,713
2019-20
33,076,701
5,964,437
39,041,138
2020-21
15,325,000
4,934,178
20,259,178
2021-26
71,605,000
15,746,134
87,351,134
2026-31
49,075,000
6,482,007
55,557,007
2031-36
18,825,000
2,614,680
21,439,680
2036-41
6,390,000
1,594,938
7,984,938
2041-45
5,900,000
487,014
6,387,014
243,126,701
$
60,019,910
$
303,146,611
$
(1)
Bond Anticipation Notes of $18,496,701 included are scheduled to mature in Fiscal 2020.
Business-Type Activities
Annual Requirements