2012 Comprehensive Annual Financial Report - the City of Tukwila

CITY OF TUKWILA: 2012 CAFRNOTES TO THE FINANCIAL STATEMENTSNOTE 11 – LONG-TERM DEBTGovernmental Activities Long-Term DebtGeneral Obligation Bonds are direct obligations of the City for which its full faith and credit are pledged.Debt service for voter-approved issues, of which the City has none, would be funded by special propertytax levies. Debt service for City Council authorized bonds, also called councilmanic bonds, is fundedfrom regular property taxes, sales taxes, or other general revenues, and is generally paid from debtservice funds. The City currently maintains a rating of A1 from Moody’s Investor Service and a rating ofAA- from Fitch’s Rating Service for its General Obligation Bonds.General Obligation Bonds outstanding at year-end are as follows:2003 Limited Tax General Obligation (LTGO) bonds were issued as payment to King County forArterial Street projects including South Park Bridge transfer and for construction of a new golfcourse clubhouse. In December 2011, this fund assumed the Golf Course portion of this debtand the Arterial Street portion was refunded.2003 LTGO refunding bonds were issued to refund the remaining debt of the 1994 LTGO bonds.1994 LTGO bonds were issued to pay for the Community Center and Fire Station #53.2008 LTGO bonds were issued to refund the remaining debt the 1999 LTGO bonds. 1999 LTGObonds were issued to purchase an additional City Hall Annex (6300 building) and economicrevitalization projects.2010 LTGO bonds were issued for the construction and realignment of Southcenter Parkway inthe Tukwila South Annexation area and for the cost of emergency preparedness capital andother equipment.2011 LTGO refunding bonds were issued to refund a portion of the bonds issued in 2003 for thecity’s Arterial Street program.95