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CITY OF LA PORTE, TEXAS
<br />NOTES TO THE FINANCIAL STATEMENTS (continued)
<br />Note 6 - Long-Term Debt (continued)
<br />In April 2012, the City issued General Obligation Refunding Bonds, Series 2012 in the amount of
<br />$9,435,000. The interest rate ranges from 2.0%-3.0%. The bonds were issued at a premium totaling
<br />$364,013. The proceeds of the bonds were used to refund a portion of the City’s outstanding bonds and
<br />pay costs of issuance related to the bonds. A portion of the proceeds were deposited into an irrevocable
<br />trust with an escrow agent to provide future debt service payments on the outstanding bonds. As a result
<br />$8,770,000 of the 2002 Limited Tax Bonds, 2004 and 2005 Certificates of Obligation and 2005 General
<br />Obligation Bonds are considered to be defeased and the liability has been removed from the books. The
<br />purpose of the bonds was to lower the City’s debt service payments. Sale of the bonds resulted in an
<br />economic gain of $629,705 and a deferred loss on refunding of $896,031.
<br />Revenue Bonds
<br />Water and Sewer Revenue Bonds constitute special obligations of the City solely secured by a lien on and
<br />pledge of the net revenues of the water and sewer system. The Revenue Bonds are collateralized by the
<br />revenue of the water and sewer system and the various special funds established by the bond ordinances.
<br />The ordinances provide that the revenue of the system is to be used first to pay operating and maintenance
<br />expenses of the system and second to establish and maintain the Revenue Bond funds. Remaining
<br />revenues may then be used for any lawful purpose. The ordinances also contain provisions, which, among
<br />other items, restrict the issuance of additional Revenue Bonds unless the special funds noted above
<br />contain the required amounts and certain financial ratios are met. The City is in compliance with all
<br />significant financial requirements as of September 30, 2012.
<br />The annual aggregate maturities for each bond type for the years subsequent to September 30, 2012 are as
<br />follows:
<br />General Obligation BondsCertificates of Obligation
<br /> Governmental Activities Governmental Activities
<br />Fiscal YearPrincipalInterestPrincipalInterest
<br />20131,120,000$ 803,279$ 1,245,000$ 1,043,029$
<br />20141,240,000 767,753 1,320,000 1,017,699
<br />20151,255,000 733,392 1,385,000 995,164
<br />20161,265,000 697,021 1,445,000 965,646
<br />20171,285,000 658,924 1,500,000 939,113
<br />20181,675,000 609,674 1,195,000 767,119
<br />20191,705,000 471,145 1,245,000 749,398
<br />20201,605,000 419,189 1,300,000 732,869
<br />20211,430,000 272,300 1,250,000 686,551
<br />20221,465,000 236,350 1,305,000 670,876
<br />20231,505,000 194,350 1,350,000 649,620
<br />20241,540,000 156,300 1,410,000 632,614
<br />20251,580,000 117,275 1,465,000 163,596
<br />2026- - 1,050,000 113,092
<br />2027- - 540,000 70,130
<br />2028- - 560,000 36,330
<br />2029- - 585,000 12,285
<br />$ 6,136,95218,670,000$ 20,150,000$ 10,245,131$
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