Notes to Financial Statements

• General Obligation (GO) Bonds, Series 2015 – $17,000 these bonds were issued for the purpose of constructing and equipping a new firefighter training facility to meet national standards, repairing existing fire stations, as well as constructing and equipping new fire stations to reduce emergency response service gaps and to enhance neighborhood safety.

• The full faith, credit and taxing power of the City are pledged for payment of the debt service and any redemption premiums if needed.

• Harris Ranch Community Infrastructure District (the District), a blended component unit of the City, issues debt to fund regional community infrastructure.

• The Special Assessment bonds are repaid by assessments against individual properties within the District. The bonds are secured by a first lien on all property within the assessed area within the District. The full faith and diligence of the District is pledged toward annual assessments, collections and payments of the assessments for debt service.

• Series 2015 General Obligation Bonds issued in the amount of $158 were issued to redeem the Series 2013 General Obligation Bonds.

• All General Obligation debt series were issued via direct placement to reimburse the District’s developer and to reimburse property owners for land transferred for public usage in accordance with the development agreement for projects within the District. These debt issues are direct obligations of the district and are not obligations of the City. The debt issues are secured by a pledge of the full faith and credit and all taxable real property in the District.

• Financing Purchase Obligations – The City entered into leases for the construction and use of fire trucks/ engines. The City has the option and intends to purchase the fire trucks at the end of the lease terms.

Business-type Activities

Airport Revenue Bonds, Series 2015 – The City issued Airport Revenue Bonds, Subordinate Series 2015 in the amount of $12,665 The bonds were issued to acquire aircraft maintenance facilities at the Boise Airport.

• Subordinate net revenues are pledged to the payment of the bonds which means revenues of the system less operation and maintenance expenses after payment of the senior bonds and any additional senior lien obligations issued hereafter. The pledged revenue to cover the bonds includes all Airport operating revenue, interest income, operating grants and excludes revenue from capital grants, customer facility charges and passenger facility charges. Operating and maintenance expenses excludes interest expense, gain on property sale/exchange, depreciation, expenses and debt service on any obligations payable from airport revenues.

• The debt service coverage requirement in the rate covenant stipulates that net revenues and pledged excluded revenues (which includes passenger facility charges) will equal at least 115% of aggregate debt service on all senior or subordinate issues combined.

• In FY 2022, the net available revenue pledged to the bonds was $12,824. The aggregate debt service was $810 principal and $3,084 interest giving a coverage ratio of 3.29.

• Airport Revenue and Revenue Refunding Bonds, Series 2021A (Non-AMT) – The City issued these bonds in the par amount of $36,450 and received a premium of $11,151. These bonds were issued to design, acquire, and construct public parking facilities at the Airport, and to pay debt service and refund the outstanding portions of the Airport Revenue Bonds, Series 2012. The par amount at date of refunding was $5,695 and the refinancing realized a net present value economic gain of $1,204. Overall debt service was reduced by $1,754 on an absolute basis and $1,676 on a present value basis. The proceeds were also used to fund a debt service reserve account, to fund capitalized interest for the bonds, and to pay for the costs of issuing the bonds.

• The pledged revenue to cover the bonds includes all Airport operating revenue, interest income, operating grant and excludes revenue from capital grants, customer facility charges and passenger facility charges. Operating and maintenance expenses excludes interest expense, gain on property sale/exchange, depreciation, expenses and debt service on any obligations payable from airport revenues.

• In FY 2022, the net available revenue pledged to the bond was $12,824. The debt Service was comprised of $410 principal and $2,274 interest giving a coverage ratio of 5.64. After the use of $1,592 of capitalized interest and the net annual debt service was $682.

• Airport Revenue Bonds, Series 2021B (AMT) – The City issued these bonds in the par amount of $19,750 and received a premium of $3,903. These bonds were issued to design, acquire, and construct an employee