Note X – Long-Term Liabilities (Formerly Long - Term Debt)
Note X - Long-Term Liabilities (Formerly Long - Term Debt)
The following table provides details of the outstanding debt of the (city/county/district) and summarizes the (city/county/district's) debt transactions for year ended December 31, 20XX.
The debt service requirements for (general obligation bonds, revenue bonds and ______________ )[1] are as follows:
| Principal | Interest | Total | |
| 20XX [2] | $ | $ | $ |
| 20XX | |||
| 20XX | |||
| 20XX | |||
| 20XX | |||
| 20XX - 20XX | |||
| TOTALS | $ | $ | $ |
Debt Refunding [3]
The (city/county/district) issued $__________ of (general obligation, revenue) refunding bonds to retire $______ of existing ______ series bonds. This refunding was undertaken to reduce total debt service payments over the next _____ years by $__________. The financial statements reflect other financing sources of $______ and other financing uses of $_____ pertaining to this transaction.
Debt Guarantees/Conduit Debt [4]
In 20XX, (city/county/district) (guaranteed the debt/issued conduit debt on behalf) of the (other entity name), a legally separate entity. In the event that the (other entity name) is unable to make a payment, (city/county/district) will be required to meet the obligation. The total amount of outstanding (debt subject of this guarantee/conduit debt) at year end was $___________.
Unused Lines of Credit [5]
At fiscal year end, the (city/county/district) had $________ available in unused lines of credit.
Assets Pledged as Collateral for Debt [6]
The following debt is secured by assets that are pledged as collateral:
| Debt: | Asset: |
| [2020 G.O. Bond] | 123 Oak St. Building |
Significant Debt Agreement Terms [7]
The following financial instruments contain debt agreement terms with finance related consequences:
| Debt: | Clause: |
| [2020 G.O. Bond] | [E.g., If the borrower defaults on two or more payments, the lender may require the borrower to repay the entire amount of the loan immediately.] |
Interfund Loans [8]
Interfund loans at fiscal year end were as follows:
|
Borrowing Fund |
Lending Fund |
Balance 1/1/20XX |
New Loans |
Repayments |
Balance 12/31/20XX |
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Compensated Absences [9]
During the year ended December 31, 20XX, the following changes occurred in compensated absences:
|
|
Beginning Balance 01/01/20XX |
Additions |
Reductions |
Ending Balance 12/31/20XX |
|
Compensated Absences* |
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*additions and reductions are reported as a net change
Instructions to preparer:
[1] Include other debt such as notes, loans (including loans from banks, individuals, other governments, etc.), installment purchases, special assessment bonds, etc. When reporting loans, only the amount actually drawn should be included here.
Return to Reference 1
[2] Separately list total debt payments for the next five years and in five-year increments thereafter.
Return to Reference 2
[3] The city/county/district should provide this disclosure in the year of transaction. Details concerning debt service reductions should be part of closing documents provided by the financial advisor.
Return to Reference 3
[4] If it is determined that the city/county/district is more likely than not (more than 50% likely) to make payments on the debt guarantee or conduit debt, add the following disclosure:
As a result of (reason for trigger), the (city/county/district) determined that it was more likely than not that the (city/county/district) would be required to pay $_______of the (other entity's name) debt service payments. This amount has been added to the (city/county/district's) Schedule of Liabilities (Schedule 09).
Return to Reference 4
If the city/county/district is more likely than not to make payments on the debt guarantee/conduit debt, they should report a liability on the Schedule 09 for the amount of debt they anticipate they will pay.
[5] Amounts available on purchase, store and fuel cards should not be included.
Return to Reference 5
[6] Identify the specific debts and their related pledged assets. In the event of any default event, these assets have been identified in the debt agreement as providing recourse to the bond holder. For example, a loan to purchase a building will likely have that building identified as collateral to the lender.
Return to Reference 6
[7] Identify the specific debt and describe any default or termination events included in the debt agreements which have a stated financial consequence. For example, missed payments may result in a new accelerated payment schedule (an acceleration clause).
Return to Reference 7
[8] List the funds that are involved in interfund loans and the purpose of those loans.
Return to Reference 8
[9] The liability recorded in this note should tie to the amount that is recorded on the Schedule of Liabilities (Schedule 09). The additions and reductions can be netted for compensated absences only. The government can list the types of compensated absences individually or as one line item. In the implementation year (Fiscal Year 2024), there is no restatement of the beginning balance, report the impact of the change in the additions and/or reductions column).
Return to Reference 9