07 CAFR cover FINAL.p65 - WMATA.com

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Washington Metropolitan Area Transit AuthorityFY 2007 Comprehensive Annual Financial Report(6) Bonds Payable and Other Debt(a) Bonds PayableNotes to Basic Financial StatementsJune 30, 2007 and 2006Pursuant to the Compact and the Bond Resolution of the Authority, the following bonds were outstanding atJune 30, 2007 and 2006 (in thousands):PrincipalUnamortizedIssuance CostNet of Premium Net NetSeries 1993, 5.18% datedNovember 1, 1993, duesemi-annually throughJuly 1, 2010 $ 42,150 $ (696) $ 41,454 $ 41,246Series 2003, 4.60% datedOctober 23, 2003, duesemi-annually throughJuly 1, 2014 109,075 5,795 114,870 134,515Series 2003B, 4.06% datedNovember 20, 2003, duesemi-annually throughJuly 1, 2010 21,265 1,313 22,578 27,72020072006$ 172,490 $ 6,412 $ 178,902 $ 203,481The Authority is required to make semi-annual payments of principal and interest on each Series of Bonds. TheAuthority must comply with certain covenants associated with these outstanding bonds; the more significant ofwhich are:• The Authority must punctually pay principal and interest according to provisions in the bond document.• Except for certain instances, the Authority cannot sell, mortgage, lease, or otherwise dispose of transit systemassets without filing a certification by the General Manager and Treasurer with the Trustee and Bond Insurersthat such action will not impede or restrict the operation of the transit system.• The Authority must at all times maintain certain insurance or self-insurance covering the assets andoperations of the transit system.The Authority is in full compliance with all significant bond covenants.37
Washington Metropolitan Area Transit AuthorityFY 2007 Comprehensive Annual Financial ReportNotes to Basic Financial StatementsJune 30, 2007 and 2006(6) Bonds Payable and Other Debt (Continued)(b) Bonds Debt Service RequirementsDebt service requirements for the bonds payable are as follows (in thousands):Fiscal Year Principal Interest Total2008 $ 25,025 $ 8,325 $ 33,3502009 26,380 6,960 33,3402010 27,815 5,520 33,3352011 29,330 4,000 33,3302012 24,655 2,818 27,4732013-2015 39,285 2,429 41,714172,490 30,052 202,542Plus unamortized premiumnet of issuance cost 6,412 - 6,412$ 178,902 $ 30,052 $ 208,954(c) Refunding of DebtOn November 30, 1993, the Authority issued $334,015,000 of Series 1993 Gross Revenue Transit RefundingBonds, with an average interest rate of 5.18 percent, to refund $332,333,000 of outstanding A, B, C, D, and ESeries Transit Bonds. The federal government provided the Authority with the funds necessary to redeem theremaining $664,667,000 of such bonds. As a result, the outstanding A, B, C, D, and E Series Transit Bondswere retired.On October 23, 2003, the Authority issued $163,495,000 of Series 2003 Gross Revenue Transit RefundingBonds, with an average interest rate of 4.6 percent, to refund $168,490,000, the callable amount ofoutstanding Series 1993 Gross Revenue Transit Refunding Bonds.On November 20, 2003, the Authority issued $35,640,000 of Series 2003B Gross Revenue Transit Bonds,with an average interest rate of 4.06 percent, to accelerate the Authority’s Vertical TransportationModernization Program and other capital projects.The Authority refunded the A, B, C, D and E Series Transit Bonds to reduce its total debt service paymentsover the next 20 years by approximately $288,000,000 and to obtain an economic gain (difference betweenthe present value of the debt service payments on the old and new debt) of approximately $4,700,000. TheAuthority partially refunded the Series 1993 Gross Revenue Transit Refunding Bonds to reduce its total debtservice payments over the next 10 years by approximately $13,000,000 and to obtain an economic gain ofapproximately $1,697,000. As of June 30, 2007 and 2006, the unamortized cost of refunding the bonds was$2,981,000 and $3,427,000, respectively. This unamortized cost relates primarily to the call premium on theSeries E Transit Bond, and the Series 1993 Gross Revenue Transit Refunding Bonds, which are beingamortized over the life of the outstanding bonds.38
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07 CAFR cover FINAL.p65 - WMATA.com

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