2018 LTGO “New Money” bonds were issued to pay or reimburse a portion of the costs of the design, construction, improvement, renovation and/or replacement of a bulkhead located near the City marina and other related public amenities and capital improvements.
2018 LTGO refunding bonds were issued to refund the City’s outstanding 2008A and2008B bonds. The net proceeds from the Refunding Bonds were used to purchase United States government securities. Those securities were deposited into are funding trust account with a trust account to pay the full outstanding principal and interest on the 2008A and 2008B bonds. As a result of this transaction, the2008A and 2008B bonds are considered to be paid in full and the liability for those bonds have been removed from the City’s financial statements.
Payments on the bonds have historically been made by the General Fund, the Street Maintenance Fund, and the Marina Fund. Beginning in 2025, the City will use Real Estate Excise Tax (REET) to pay the General Fund portion of the debt service.
The interest rate on the bonds ranges from 3% to 4%.
