Notes to Financial Statements

parking facility at the Airport. 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 bonds was $12,824. The debt service was comprised of $829 interest giving a coverage ratio of 15.48. After the use of $829 of capitalized interest the net annual debt service was $0.

• Wastewater Facility Refunding Bonds, Series 2012 – The City issued the Wastewater Facility Refunding Bonds, Series 2012 in the amount of $16,699. This bond was defeased on June 30, 2022, with the issuance of the Water Renewal System Revenue and Refunding Bonds, Series 2022, and all outstanding bonds were redeemed on September 1, 2022. The par amount at date of refunding was $1.5 million and the refinancing realized a net present value economic loss representing $36 thousand. Overall debt service increased by $41 thousand on an absolute basis and $40 thousand on a present value basis.

• The proceeds from the refunding bonds were used to extinguish two forms of debt: a) refinance $9,945 of outstanding principal of the 1999 Refunding Bonds originally issued in the aggregate amount of $22,145; b) to refund $7,339 of outstanding DEQ Loans originally issued in the aggregate amount of $9,856; c) to pay the costs of issuing the bonds. In FY 2022, the net available revenue pledged to bonds was $32,706. The debt service was $476 principal and $29 interest giving a coverage ratio of 18.06.

• Water Renewal System Revenue and Refunding Bonds, Series 2022 – The City issued these bonds with a par value of $76,835 and premium of $4,985. These bonds were issued to design, acquire, upgrade and construct water renewal facilities and infrastructure projects as well as to refinance the Wastewater Facility Refunding Bonds, Series 2012.

• The projects include the following programs: Lander Street Water Renewal Facility; West Boise Water Renewal Facility Program; Recycled Water Program, and the Collections and Conveyance Program.

• The first debt service payments will occur in FY 2023. A breakdown of debt service and coverage ratios will be provided with the FY 2023 financial statements.

The business-type revenue bonds contain the following provisions that would constitute an event of default:

• Non-punctual payment of principal or interest.

• Failure to perform or observe the covenants in the indenture or in the bonds for a specified period (30-60 days, depending on the bond).

• Material misrepresentation or warranty by the Issuer.

• Insolvency, receivership, bankruptcy, reorganization, dissolution, or liquidation or inability to pay its obligations.

• Judgment against the pledged net revenues that is not dischargeable within the near term (90-120 days, depending on the bond).

• If there is a final determination by the Internal Revenue Service (not subject to further review or approval), or an opinion of counsel, that interest on the Bonds is not excluded from gross income for federal income tax purposes.

In the event of default, the bond trustee may declare unpaid principal and accrued interest immediately due and pursue and exercise any other remedy available at law or in equity to enforce its rights under the bond indenture.

Financing Purchase Obligations

Financing purchase obligations at September 30, 2022 are $395. The obligation, which is collateralized by the vehicle, has a total annual installment of $395 including interest of 1.9886% and will mature in 2023. One of the two remaining obligations were paid off via rent payment of $316 As of year end, the vehicle currently leased under financing purchase obligation in governmental activities had historical costs of $1,214 and accumulated depreciation of $556.

Financial Section