City and County of Denver Municipal Airport System ANNUAL ...

City and County of Denver
Municipal Airport System
NOTES TO FINANCIAL STATEMENTS
December 31, 2010 and 2009
Changes in notes payable for the years ended December 31, 2010 and 2009 were as follows:
Balance Balance Amounts
January 1, December 31, due within
2010 Additions Retirements 2010 one year
Notes payable $ 47,790,558 $ - $ (16,361,261) $ 31,429,297 $ 10,789,052
Less current portion (10,789,052)
Noncurrent portion $ 20,640,245
Balance Balance Amounts
January 1, December 31, due within
2009 Additions Retirements 2009 one year
Notes payable $ 63,648,040 $ - $ (15,857,482) $ 47,790,558 $ 14,584,003
Less current portion (14,584,003)
Noncurrent portion $ 33,206,555
(10) Demand Bonds
Included in long-term debt are $42,300,000 for Series 1992F, G; $35,500,000 of Series 2002C, $75,700,000 of Series
2008B, $92,600,000 of Series 2008C1, $200,000,000 of Series 2008C2-C3, $104,655,000 of Series 2009C and
$147,400,000 for Series 2007G1-G2 of Airport System Revenue Bonds Series, respectively, which bear interest at
flexible or weekly rates and are subject to mandatory redemption upon conversion of the interest rate to a different rate
type or rate period. If the bonds are in a weekly (or monthly) mode, the bonds are subject to purchase on demand of
the holder at a price of par plus accrued interest. Each series has an irrevocable letter of credit or standby bond
purchase agreement which the remarketing agent for the bonds can draw upon to purchase the bonds. If the bonds
purchased by the remarketing agent could not be resold within a designated period of time, each irrevocable letter of
credit and standby bond purchase agreement contains provisions for a take out agreement which would convert the
obligation to an installment loan with the provider of that agreement. If the take out agreement were to be exercised,
the Airport System would be required to pay interest amounts on the loan that are expected to be higher than the
interest amount on the bonds.
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