7 debt Change in long-term debt obligations for the year ended June 30, 2020, are as follows: Balance FY 2019 June 30, 2018 Additions Bonds Payable: Revenue Bonds $ 58,950,000 $ Deferred Amounts: Issuance Premiums Total Bonds Payable VRA Loans Payable Total Debt 2,392,976 61,342,976 66,460,114 $ 127,803,090 $ FY 2019 Reductions Balance June 30, 2019 – $ (2,990,000) $ 55,960,000 – – – (475,948) (3,465,948) (6,212,916) 1,917,028 57,877,028 60,247,198 – $ (9,678,864) $ 118,124,226 $ FY 2020 Additions $ – – – – – FY 2020 Reductions Balance June 30, 2020 $ (3,105,000) $ 52,855,000 (423,357) (3,528,357) (6,332,379) 1,493,671 54,348,671 53,914,819 $ (9,860,736) $ 108,263,490 Due Within One Year $ 3,215,000 – 3,215,000 6,509,966 $ 9,724,966 From time to time, the Authority may incur debt through bond issuances via the capital markets, and financing agreements (loans) with VRA. The proceeds of all borrowings from these sources are used to finance the acquisition or development of capital assets, or to retire prior debt related to capital assets. Accordingly, all amounts reported as Bonds Payable and VRA Loans Payable (see Notes 5 and 6) are included in the calculation of net investment in capital assets on the accompanying Statements of Net Position. The Authority's outstanding notes from direct borrowings of $53.9 million contain a certain provision that in the event of default, outstanding amounts become immediately due if the Authority is unable to make a payment. The Authority's outstanding notes from direct borrowings are secured with collateral of the underlying investments. These borrowings contain (1) a provision that in the event of default, the timing of repayment of not less than twenty- five percent in aggregate principal amount of the outstanding amounts become immediately due if pledged revenues during the year are less than 120 percent of debt service coverage due in the following year and (2) by notice to the Authority, declare the entire principal of and interest due and payable immediately. The Authority's outstanding notes from direct borrowings contain a subjective acceleration clause that allows the lender to accelerate payment of the entire principal amount to become immediately due if the lender determines that a material adverse change occurs. 8 long-term liabilities Long-term liabilities activity for the years ended June 30, 2020 and 2019 are as follows: Balance June 30, 2018 Compensated Absences Other Post Employment Benefits Liability 12,840,396 GLI Other Post Employment Benefits Liability 1,814,000 HIC Other Post Employment Benefits Liability Net Pension Liability Total Long-term Liabilities – 1,526,922 FY 2019 FY 2019 Balance Additions Reductions June 30, 2019 FY 2020 Additions FY 2020 Balance Due Within Reductions June 30, 2020 One Year $ 4,717,462 $ 718,233 $ (240,060) $ 5,195,635 $ 812,177 $ (722,834) $ 5,284,978 $ 773,911 1,077,045 240,000 – 4,903,580 (468,751) (103,000) – (5,798,988) 13,448,690 1,951,000 – 631,514 1,086,431 305,918 292,374 (64,779) 14,470,342 (94,444) (30,080) 5,249,781 (3,838,115) 2,162,474 262,294 2,043,180 – – – – $ 20,898,780 $ 6,938,858 $ (6,610,799) $ 21,226,839 $ 7,746,681 $ (4,750,252) $ 24,223,268 $ 773,911 50 FINANCIAL SECTION NOTES TO FINANCIAL STATEMENTS
Prince William County Service Authority | 4 County Complex Court Woodbridge, VA 22192
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