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CITY OF EUGENE, OREGON <br />Notes to Basic Financial Statements <br />(4) Detailed Notes on All Funds, continued <br />(G) Operating Leases, continued <br />The following is a schedule of future minimum rental payments required under operating leases that have initial <br />or remaining non-cancelable lease terms in excess of one year as of June 30, 2008: <br />Fiscal year <br />ending June 30 <br />2009 <br />2010 <br />2011 <br />2012 <br />2013 <br />Rentals <br />$ 233,992 <br />187,520 <br />131,771 <br />42,675 <br />n <br />Total minimum future rentals $ 595,958 <br />(H) Bond Anticipation Note <br />The City entered into an arrangement with KeyBank National Association in the form of a Revolving Credit <br />Facility dated November 9, 2004, currently bearing interest at 3.10%, and having an authorized limit of <br />$2;500,000 maturing on November 29, 2009. As of June 30, 2008, the City had a $0 balance on this credit <br />facility. Draws on this credit facility are recorded as a liability of the Special Assessment Capital Projects Fund. <br />The line of credit is available to finance construction of local improvement projects which primarily benefit the <br />property owners against whose properties special assessments are levied. <br />Beginning Ending <br />balance Increase Decrease balance <br />Governmental activities <br />Revolving credit facility $ 0 750,000 (750,000) 0 <br />(I) Noncurrent Liabilities <br />General Obligation Bond and Revolving Credit Facility <br />On November 7, 2006, Eugene voters passed Measure 20-110, authorizing the City to issue a maximum of <br />$27,490,000 of general obligation (G.O.) bonds. The proceeds from the sale of the bonds are to be used for <br />the purchase of land for parks and open space, and the construction and improvement of athletic fields and the <br />West Eugene Wetlands Education Center. The City can issue the bonds in one or more series. The bonds can <br />be issued to provide interim financing and to refund the bonds that provide interim financing. <br />On May 13, 2007, the City entered into a General Obligation Bond and Revolving Credit Facility with Bank of <br />America, currently bearing interest at 2.50% with a maturity date of June 1, 2012. The facility has an <br />authorized limit of $6,875,000 and is further limited to $27,490,000 less the amount of any general obligation <br />bonds issued for the purpose of repaying the credit facility. As of June 30, 2008, the City had a $4,980,000 <br />balance on the credit facility with no long-term bonds issued to repay this debt. <br />Draws on this credit facility are recorded as a financing source in the General Capital Projects Fund. The debt <br />will be repaid from general property tax revenues or by the future issuance of long-term general obligation <br />bonds, which can be issued at the City's discretion. The General Obligation Bond and Revolving Credit Facility <br />is backed by the full faith and credit of the City and is included in the City's G.O. bonded debt margin limit. <br />During the current fiscal year, the General Obligation Bond and Revolving Credit Facility was reclassified as a <br />noncurrent liability. For additional information, refer to prior period adjustment (Note 5H). <br />continued <br />60 <br />