Table of Contents Table of Contents
Previous Page  92 / 270 Next Page
Information
Show Menu
Previous Page 92 / 270 Next Page
Page Background

44

City of Raleigh

Financial Section

4. Other long‐term obligations 

Other long‐term obligations include reimbursement contracts, capital lease obligations, certificates of participation, 

installment financing agreements, limited obligation bonds, earned vacation pay and landfill closure and 

postclosure costs. The total amount to be paid in the future periods including interest on certificates, installment 

financing agreements and other installment obligations is $904,574,695.   

Installment Financing Agreements

The City has previously issued $243,425,000 in variable rate certificates of 

participation to finance the construction of the convention center.   

This debt was sold by the Walnut Creek Financing Assistance Corporation, a blended component unit of the City, 

whose main purpose is to issue certificates of participation for the City.  The City has remarketing and standby 

purchase agreements with banks related to the variable rate certificates.  Under these agreements, the banks will 

remarket any certificates for which payment is demanded.  If the certificates cannot be remarketed, the banks will 

purchase the certificates.  Interest rates may change pursuant to the terms of the debt agreements based on market 

conditions.  The interest rates, per the remarketing agreements, cannot exceed 12.0%.  The maximum interest, 

which cannot exceed 12.0%, required for these variable rate certificates through maturity would be $305,034,600.  

The following schedule shows the expiration dates, which can be renewed, fees paid in fiscal year 2015‐16 pursuant 

to the terms of the debt agreements, and the interest rate at year‐end for these issues. 

Balance

Agreement

Fees Paid

Issue

June 30, 2016

Expiration

FY 2016

2004A

55,000,000

$       

January 5, 2019

240,999

$      

0.05

%

2005B

173,370,000

$     

December 26, 2017

751,368

$      

0.04

%

June 30, 2016

Interest Rate

During fiscal year 2015‐16, the City drew down $2,473,553 in debt proceeds from a PNC Drawdown Program for 

improvements to the Duke Energy Center for the Performing Arts.  This installment financing program was 

initiated in May 2013 and operates similar to a credit line in that the City reimburses its capital expenditures by 

drawing down proceeds.  The City would owe only what it has drawn to date, $6,230,314 plus the current year 

draws all of which were refunded during the year and permanently financed with the 2016 limited obligation 

bonds issue.  This program has both governmental and business‐type activity components, with a total maximum 

limit of $25,300,000.    

The debt service requirements to maturity, for these variable rate installment financing agreements, including 

the converted fixed rate note, are shown below:  

Fiscal Year

Ending June 30

Principal

Interest

2017

8,883,976

$      

9,448,229

$         

2018

9,260,734

9,123,338

2019

9,645,734

8,731,140

2020

10,035,734

8,358,035

2021

10,530,734

7,854,006

2022‐2026

59,663,672

32,232,896

2027‐2031

76,279,706

17,895,817

2032‐2036

61,024,214

3,654,209

245,324,504

$  

97,297,670

$       

Business‐type Activities

44