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Table D-1
General Obligation, Limited Obligation, Special Obligation and Revenue Bonds – Outstanding
Debt
(in thousands of dollars)
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
13,635
Limited Obligation Notes
1,057
1,057
Limited Obligation Bonds
23,860 24,450
23,860 24,450
Certificates of Participation 5,930 6,210
5,930
6,210
Special Obligation Bonds
2 ,930
3,585 2,930
3,585
Revenue Bonds
224,630 207,790 224,630
207,790
Revenue BANS
18 ,497
14,075 18,497
14,075
Total
$ 199,820 $ 193,995 $ 246,057 $ 225,450 $ 445,877 $ 419,445
Governmental
Business-Type
Activities
Activities
Total
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.