In preparation for a proposed bond sale, the city manager requested that you pre
ID: 2433543 • Letter: I
Question
In preparation for a proposed bond sale, the city manager requested that you prepare a statement of direct and overlapping debt for the city as of December 31, 2014. You determine that the following city bond issues are outstanding on that date:
Convention center bonds $8,800,000
Electric utility bonds 3,400,000
General obligation serial bonds 9,000,000
Tax increment bonds 2,400,000
Water utility bonds 3,300,000
Transit authority bonds 2,600,000
Other information is as follows:
a. Electric utility, water utility, and transit authority bonds were all serviced by enterprise revenues.
b. Assets segregated for debt retirement total $1,200,000.
c. Another bond issue to be paid from general tax revenues has been approved by city tax payers in the amount of $2,000,000.
g. The city’s residents are also responsible for 25% of the county’s bonded debt of $30,000,000 and 30% of the school district’s bonded debt of $12,000,000.
Required: prepare a statement of direct and overlapping debt
Explanation / Answer
Statement Of Direct And Overlapping Debt
December 31, 2014 (Amounts in $)
Note : City Direct Debt
Conventional Center Bonds $ 8,800,000
General Obligation Serial Bond 9,000,000
Tax Increment Bond 2,400,000
Total City Direct Debt 20,200,000
Unit General Obligation Bond Estimated Percentage Applicable Estimated Share of Overlapping Debt City Direct Debt (As per note) 20200000 100% 20200000 County's bonded debt 30000000 25% 7500000 School district's bonded debt 12000000 30% 3600000 Total Direct And Overlapping Debt 31300000