comprehensive annual financial report - City of St. Petersburg

CITY OF ST. PETERSBURG, FL
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2010
NOTE 13 – LONG - TERM OBLIGATIONS – (Continued)
On December 21, 2007, the City entered into an agreement with The Young Men’s Christian Association
of Greater St. Petersburg, Florida, Inc. (YMCA). The agreement laid out the terms of a new construction
project at the Childs Park Sports Complex. The YMCA agreed to build, operate and manage a new
YMCA Community Center and the City desired to operate a branch of the City’s library system and
provide for a community meeting room/auditorium for the benefit and use by the citizens of St.
Petersburg within the newly constructed complex. The City committed to contributing $1,000,000
towards the construction. The building was completed in October 2008. Per the terms of the agreement,
upon completion, the YMCA donated the building to the City and the City subsequently leased it back to
the YMCA for $30 for thirty years, with an extension option for another thirty years. (The building is
included in Buildings and Systems under Governmental Activities in Note 7 – Capital Assets). In the
event of early termination of the lease by the City or if the City refuses to grant a request for the new lease
extension, the City shall reimburse the YMCA for the unamortized portion of its total project costs less
the $1,000,000 that the City has already contributed. This liability is contingent upon the City
terminating the lease. The YMCA’s portion of the cost (net of the $1,000,000 paid by the City) of
$1,860,910 shall be amortized over a 50-year period, per the terms of the lease. The annual amortization
of $37,218 will be recognized as contribution revenue. During fiscal year 2010, $37,218 was amortized
and recognized as contribution revenue on the city wide financial statements leaving a balance of
$1,786,474 at September 30, 2010, which is included in the long term obligations for Governmental
Activities on page D-48.
Bonds and Notes Payable and Capitalized Lease by major and non-major businesses: (In thousands of
dollars.)
Beginning
Balance Additions Reductions
Ending
Balance
Due Within
One Year
Water Resources $ 223,205 $ - $ (4,630) $ 218,575 $ 5,314
Stormwater 21,048 - (138) 20,910 146
Non-major Business Activities 8,325 - (2,065) 6,260 420
252,578 - (6,833) 245,745 5,880
Unamortized discount and deferred amount on
refunding (1,955) - 50 (1,905) -
Total Bonds and Notes Payable and
Capitalized Lease $ 250,623 $ - $ (6,783) $ 243,840 $ 5,880
Since 1998, the City has requested and received loans from the State of Florida Revolving Loan fund of
the State Department of Environmental Protection. The loans represent direct grants from the Federal
Governments Clean Water Act or bonded debt proceeds from the State of Florida Department of
Environmental Protection. The State requires semi-annual principal and interest payments over twenty
years beginning two years after State loans approval. The following loans, interest rates, and maturities
are included in the business-type activities notes payable:
D-49