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City of Raleigh

Financial Section

Status of Bond Authorizations. 

The following represent continuing authorization of general obligation bonds, 

which were unsold at June 30, 2016:

October 11, 2011

Transportation

20,000,000

$         

October 8, 2013

Transportation

75,000,000

November 4, 2014

Parks and Recreation

71,775,000

Total

166,775,000

$        

2. Defeased debt and refundings 

During fiscal year 2015‐16, the City issued $30,955,000 of Series 2016A limited obligation refunding bonds to retire 

$30,700,000 of series 2009 limited obligation refunding bonds. The reacquisition price exceeded the net carrying 

amount of the old debt by $255,000.  This amount is being netted against the new debt and amortized over the 

remaining life of the refunded debt. The current refunding was undertaken for marketability. The 2009 limited 

obligations bonds were issued as variable rate bonds utilizing a self‐liquidity program by Citigroup (termed 

“Windows”) to sell and remarket the bonds whenever necessary.   Due to regulatory changes and an evolving 

variable rate bond market it was determined to be in  the City’s best interest to convert from this type of liquidity 

arrangement to a more traditional third party liquidity facility with PNC Bank. 

During fiscal year 2015‐16, the City issued $49,860,000 of Series 2016B revenue refunding bonds to generate 

resources for future debt service payments on $56,755,000 of series 2006B water and sewer revenue bonds.  The 

reacquisition price exceeded the net carrying amount of the old debt by $1,658,466.  This amount is being netted 

against the new debt and amortized over the remaining life of the refunded debt. The advance refunding was 

undertaken to reduce total debt service payments over the next 10 years by $6,455,745 and resulted in an economic 

gain of $4,486,519. 

During fiscal year 2015‐16, the City issued $118,105,000 of Series 2016A and B general obligation refunding bonds 

to generate resources for future debt service payments on $66,650,000 of series 2012B general obligation public 

improvement bonds, $4,350,000 series 2012A general obligation public improvement bonds, $36,965,000 of series 

2009F general obligation public improvement bonds, $5,580,000 series 2009A public improvements bonds, 

$5,000,000 of series 2009C housing bonds, $3,500,000 of series 2007 housing bonds, $705,000 of series 2004B housing 

bonds and $5,500,000 of series 2009G general obligation housing bonds which total $128,250,000. The reacquisition 

price exceeded the net carrying amount of the old debt by $6,614,087.  This amount is being netted against the new 

debt and amortized over the remaining life of the refunded debt. The partial advance refundings were undertaken 

to reduce total debt service payments over the next 15 years by $14,811,388 and resulted in an economic gain of 

$11,863,717. 

During fiscal year 2015‐16, the City issued $14,150,000 of Series 2016 limited obligation refunding bonds to generate 

resources for future debt service payments on $15,971,789 previously drawn from a PNC installment financing 

program for improvements to the Duke Energy Center for the Performing Arts and other various capital projects 

across the City. The reacquisition price exceeded the net carrying amount of the old debt by $144,789.  This amount 

is being netted against the new debt and amortized over the remaining life of the refunded debt. The advance 

refunding was undertaken to establish fixed financing for previous drawdowns where the program term of two 

years is expiring. 

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