City of Raleigh
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:
Ending June 30
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.