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CITY OF LA PORTE, TEXAS Exhibit A-10 <br />NOTES TO FINANCIAL STATEMENTS (continued) <br /> <br /> <br />Note 6 Î Long-Term Debt and Other Long-Term Obligations (continued) <br /> <br />Current Year Refunding of Debt <br /> <br />On February 18, 2020, the City issued $2,705,000 in General Obligation Refunding Bonds, Series 2020. The <br />refunding bonds have a rate of 3.625% to 4.000% and were issued to refund the Series 2010 Certificates of <br />Obligation with rates ranging from 3.625% to 4.000%. The proceeds were deposited in an irrevocable trust with an <br />escrow agent to provide for future debt service payments on the outstanding bonds. As a result, $2,925,000 are <br />considered to be defeased and the liability for these bonds have been removed from the long-term debt of the City. <br />The refunding reduced the CityÓs total debt service by $221,579 for an economic gain of $214,493. The deferred <br />gain on refunding of $15,037 is being amortized over the life of the bond. <br /> <br />Prior Year Refunding of Debt <br /> <br />The City defeased certain outstanding revenue bonds by placing proceeds of new bonds in irrevocable trust to <br />provide for all future debt service payments. Accordingly, the respective trust accounts and liability for the defeased <br />bond are not included in the CityÓs financial statements. As of September 30, 2020, the City does not have bonds <br />considered defeased and outstanding. <br /> <br />Note 7 Î Interfund Receivables, Payables and Transfers <br /> <br />The composition of interfund transfers for the year are as follows: <br /> <br />Transfers To <br />Capital <br />Debt Improvement Internal <br />ServiceFundService <br />Transfers FromGeneralTotals <br />General Fund$ -$ 5,500,000-$ $ 2,619,445$ 8,119,445 <br />Other Governmental 57,476 1,004,822 1,292,950 2,355,248- <br />Utility 251,842- 74,201- 326,043 <br />Airport - - - 830 830 <br />Internal Service - - - 20,585 20,585 <br />Totals$ 57,476$ 1 ,256,664$ 6,792,950$ 2,715,061$ 10,822,151 <br /> <br />The purpose of interfund transfers during the current year consisted of the following: <br /> <br />Purpose <br />Transfers FromTransfers To <br />Hotel/Motel FundGeneral FundTransfer for Golf Course Advertising Expenditures and City <br />Bordering Bay for Golf Course Expenditures <br />dUtility FundTransfer to fund Capital Projects <br />General Fun <br />Utility FundDebt Service FundAnnual Transfer for Debt Service <br />La Porte Development Corporation (4B)Debt Service FundAnnual Transfer for Debt Service <br />General FundInsurance FundTransfer for Liability Insurance and Worker's Compensation + <br />$2 million for Health Insurance <br />Utility FundInsurance FundTransfer for Liability Insurance and Worker's Compensation <br />Airport FundInsurance FundTransfer for Liability Insurance and Worker's Compensation <br />Vehicle Maintenance FundInsurance FundTransfer for Liability Insurance and Worker's Compensation <br />General FundGeneral CIP FundTransfer to fund Capital Projects <br />La Porte Development Corporation (4B)General CIP FundTransfer to fund Capital Projects <br />Utility FundSanitary Sewer Rehabilitation FundAnnual Transfer for Sewer Rehabilitation/Maintenance <br />Projects <br />Draft 3-12-21 <br /> <br /> 56 Fiscal Year 2020 Annual Report <br /> <br />