Long Term Obligations

1
Chapter 9

• Long Term Obligations

2
Whats In A Name?

• GO Bonds
• - secured by the full faith and credit of the
  govt
• Revenue Bonds
• payable exclusively from earnings of a specific
  enterprise

3
Whats In A Name?

• Demand Bonds
• bond holder can put or demand the bonds be paid
  off per certain terms
• take out agreements
• the debt LT if meets criteria (p.369)

4
Whats In A Name?

• BAN, TAN, RAN
• generally, short term or interim financing to
  bridge between the need for cash and the receipt
  of cash from the LT source
• TAN and RAN always short term
• BAN can be long term if criteria are met (p. 370)

5
Back to the Basics

• General Govt Debt
• Short term
• liability recorded in a governmental fund, not in
  the GLDTAG
• no proceeds recorded in fund
• Cash xx
• ST Debt xx
• Long term
• recorded in the GLTDAG
• proceedsgtOFS in govt fund

6
GLTDAG

• Credits
• face value of most LT debt
• present value of
• capital lease payments
• known settlements
• discounted (current) value of
• deep discount bonds only

7
GLTDAG

• Debits
• needed to balance
• not assets, though listed in the asset section
  of the combined b/s
• Amount Available category used if DSF has
  amounts set aside for principal payments
• Amount To Be Provided for everything else

8
Other Types of LT Debt

• Capital lease obligations
• Compensated absences
• Pension liabilities
• Settlements
• Contingent Liabilities

9
Disclosures

• Statement of Changes in General LT Debt
• Footnotes
• see section 2300.901 in codification

10
Overlapping Debt

• How property within a governments taxing
  jurisdiction is also responsible for generating
  tax revenue for other jurisdictions