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CITY OF EUGENE, OREGON <br />Notes to Basic Financial Statements <br />(4) Detailed Notes on All Funds. continued <br />(I) Noncurrent Liabilities. continued <br />Limited Tax Bonds <br />The City issues limited tax bonds in governmental and business-type activities. Limited tax bonds in <br />governmental activities include limited tax improvement bonds and limited tax pension bonds. Limited tax <br />improvement bonds finance public improvements that benefit private parties. Improvement bonds are secured <br />by the benefited properties and are to be repaid in installments from property owners. Limited tax pension <br />bonds finance a portion of the estimated unfunded actuarial liability with the Oregon Public Employees <br />Retirement System. The pension bonds are to be repaid from existing revenue sources. Limited tax bonds in <br />business-type activities financed the Broadway Garages construction project and are serviced from available <br />parking revenues. All limited tax bonds are backed by the full faith and credit of the City, within the limitations of <br />Article XI of the Oregon Constitution. <br /> Original Ending <br />Governmental activities issuance Interest rates (%) balance <br />Limited tax bonds: <br />Limited Tax Pension Bonds, Series 2002 $ 84,335,000 6.390% to 7.410% 64,291,456 <br />Limited Tax Improvement Bonds, Series 2006 1,036,427 5.100% 708,423 <br />Subtotal 85,371,427 64,999,879 <br />Business-tvpe activities <br />.Limited tax bonds: <br />Broadway Garages Limited Tax Bonds, Series 1997 7,000,000 6.850% to 7.000% 5,505,000 <br />Total limited tax bonds $ 92,371,427 70,504,879 <br />The Limited Tax Pension Bonds, Series 2002, in governmental activities, are deep discount bonds and reported <br />net of accretion. However, the annual debt service requirements to maturity are reported on a cash basis and <br />do not account for accreted amounts. The following table reconciles the ending balance of limited tax bonded <br />debt and the annual debt service requirements to maturity schedule: <br />Total limited tax bonds <br />Less: Accretion of deep discount <br />Total debt service requirements for limited tax bonds <br />$ 64,999,879 <br />(5.603.664) <br />$ 59,396,215 <br />continued <br />63 <br />