City of Raleigh
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.
June 30, 2016
January 5, 2019
December 26, 2017
June 30, 2016
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:
Ending June 30