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City of Raleigh

Financial Section

The City has previously entered into installment financing agreements to finance various general governmental 

capital projects.  These debt issues carry fixed interest rates of 5.54% (outdoor amphitheater), 3.0% to 5.25% 

(downtown improvement projects), 1.76% (enterprise resource planning technology), and 3.0% to 4.25% (parks 

projects).  The City also previously entered into limited obligation bonds that carry fixed coupon interest rates from 

3.0% to 5.57%, and one variable rate at 0.42% at June 30, 2016, for the purpose of rehabilitating existing structures 

and constructing remote operations centers.  Principal and interest requirements will be provided by appropriation 

in the year in which they become due.   

During fiscal year 2015‐16, the City issued $11,460,000 of Series 2016 limited obligation bonds to finance the 

construction of a fire station and finance projects for the Duke Energy Center for the Performing Arts.   These 

bonds mature serially over 20 years, and carry fixed coupon rates of 4.25% to 5.0%.  Also during fiscal year 2015‐16, 

the City drew down $1,032,846 in debt proceeds from a PNC Drawdown Program for the design of street 

improvement project.  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 owes only 

what it has drawn to date including prior draws of $6,262,553 and interest is a variable rate which was 0.52% at 

June 30, 2016.  This program has both governmental and business‐type activity components, with a total maximum 

limit of $25,300,000.    

On July 24th, 2015, the City of Raleigh and the State of North Carolina completed the closing process for the City’s 

acquisition of 308 acres of the Dorothea Dix Campus.  As such, the City issued $52,000,000 in a private placement 

installment financing.  The loan is to be repaid at a fixed interest rate of 2.18%, with final maturity at July 1, 2025. 

Annual maturities are as follows: 

Fiscal Year

Ending June 30

Principal

Interest

2017

17,592,798

$        

9,066,321

$          

2018

17,543,568

8,578,656

2019

14,653,241

8,049,007

2020

14,608,511

7,574,837

2021

14,046,201

7,089,700

2022‐2026

68,496,735

27,978,815

2027‐2031

41,234,277

17,155,983

2032‐2036

37,200,091

7,816,440

2037‐2040

16,860,000

1,275,872

242,235,422

$      

94,585,631

$        

Governmental Activities

The City has previously entered into installment financing agreements to finance various downtown parking 

facilities.  These agreements bear interest at rates ranging from 4.20% to 5.25% with a variable rate component for 

one agreement, not to exceed 15%, which was 0.25% at June 30, 2016.   There are also two variable rate agreements 

that each had an interest rate of 0.46% at June 30, 2016.  Principal and interest requirements will be provided by 

appropriation in the year in which they become due.    

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