Comprehensive Annual Financial Report - Cobb County

COBB COUNTY, GEORGIA
NOTES TO FINANCIAL STATEMENTS
September 30, 2007
Note 8. Long-Term Debt (Continued)
$16,730,000 series 1999 serial bonds, of which $3,240,000 was unrefunded and outstanding at
September 30, 2007. These bonds are subject to mandatory redemption requirements beginning October
1, 2011. The unrefunded term bonds come due October 1, 2014 at a fixed rate of 6.0 percent.
The purpose of the 1999 issue was to finance the expansion of the Cobb Galleria Centre and the
construction of a new parking deck. These bonds were partially advance refunded by the series 2005
revenue refunding bonds.
$2,120,000 series 2005 serial bonds, of which $2,105,000 was outstanding at September 30, 2007. The
serial bonds are due in future annual installments of $20,000 to $990,000 through October 1, 2016, with
interest at fixed rates from 3.0 to 4.0 percent.
$13,255,000 series 2005 term bonds, all of which was outstanding at September 30, 2007, that are
subject to mandatory redemption requirements beginning October 1, 2017. The term bonds come due
with the applicable fixed rates as follows:
October 1, 2019 $ 3,255,000 5.25%
October 1, 2026 10,000,000 5.50%
$ 13,255,000
The purpose of the 2005 issue was to refund a portion of the series 1999 bonds.
$44,180,000 series 2004 serial bonds, of which $41,460,000 was outstanding at September 30, 2007.
The serial bonds are due in future annual installments of $1,045,000 to $3,790,000 through January 1,
2026 with interest at fixed rates from 2.0 to 5.0 percent.
$12,820,000 series 2004 term bonds, all of which was outstanding at September 30, 2007, that are
subject to mandatory redemption requirements beginning January 1, 2027. The term bonds come due on
January 1, 2029 at a fixed rate of 4.375 percent.
The purpose of the 2004 issue was to finance the construction of a new Performing Arts Centre and
parking garage. The debt service requirements for the 2004 revenue bonds are to be funded through an
intergovernmental contract with Cobb County over the term of the debt.
$10,000,000 series 2007 term bonds, all of which was outstanding at September 30, 2007. The serial
bonds are due in future annual installments of $390,000 to $760,000 through October 1, 2026, with
interest at a fixed rate of 3.99 percent.
Advance refundings
During fiscal year 2005, the Authority issued $15,375,000 of revenue refunding bonds in order to
provide resources for the purchase of U.S. government, state, and local government series securities that
were placed in an irrevocable trust for the purpose of generating resources for all future debt service
payments on $15,400,000 of outstanding revenue bonds. As a result, the refunded bonds are considered
to be legally defeased for accounting purposes and the liability has been removed from the
governmental activities column of the statement of net assets. The reacquisition price of the new debt
exceeded the net carrying amount of the old debt by $1,417,645.
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