City of Coral Springs, Florida Notes to Financial Statements

Note 10. Long-Term Liabilities (Continued) Line of Credit

On July 24, 2020, the City entered into a non-revolving line of credit agreement not to exceed $25,000,000 with a bank to provide liquidity to the City enabling the City to better respond to an emergency event such as, but not limited to, pandemics, hurricanes or other natural, biological or man-made disasters that would require the financing of clean-up, collection and disposal of solid waste or other necessary costs to assure public safety and provide cash flow relief to the City’s General Fund The term of the agreement is a 30-month draw period ending January 23, 2023 At the end of the draw period, the line of credit will convert to a term loan with an amortization period of 5 years. The line bears interest during the draw period at one-month LIBOR + 1.22% For the term period, the rate can remain a variable rate per annum equal to one-month LIBOR + 1.78% or can convert to a fixed rate mutually agreed to by the City and the lender There were no borrowings against the line as of the year ended September 30, 2022 Fees associated with the line of credit totaled $30,000 for the year ended September 30, 2022.

Financed Purchases

In June 2019, the City entered into a purchase agreement to finance the installation of synthetic turf for seven municipal fields at City parks. Lease payments commence in October 2019. Under the terms of the agreement, which is accounted for as a financed purchase, the City will make semi-annual interest payments and annual principal payments at an interest rate of 2.296% over a period of 10 years As of September 30, 2022, the City’s liability totaled $4,993,000

In November 2019, the City entered into a purchase agreement for equipment used for the City’s public safety services. The agreement qualifies as a financed purchase for accounting purposes and therefore has been recorded at the present value of the future minimum lease payments as of the inception date The City will make annual principal payments at an interest rate of 2.07% over a period of 5 years As of September 30, 2022, the City’s liability totaled $647,798

In November 2019, the City entered into a purchase agreement for equipment to be used for the City’s emergency medical services. The agreement qualifies as a financed purchase for accounting purposes and therefore has been recorded at the present value of the future minimum lease payments as of the inception date. The City will make annual principal payments at an interest rate of 2.07% over a period of 5 years. As of September 30, 2022, the City’s liability totaled $190,251.

City of Coral Springs, Florida

Notes to Financial Statements

Note 10. Long-Term Liabilities (Continued)

Business-type activities bonds and loans outstanding on September 30, 2022, consist of the following:

State Revolving Loans Payable – Enterprise Funds

The City entered into loan agreements with the State Department of Environmental Protection’s Clean Water State Revolving Fund Loan Program and Drinking Water State Revolving Fund Loan Program to borrow up to $14,929,201 to finance the planning, design and construction of water and wastewater infrastructure improvements As of September 30, 2022, the City has outstanding debt of $8,652,675 The City is required to maintain rates and charges for services provided by the water and sewer systems which will be sufficient to provide revenue equal to or exceeding 1.15 times the sum of the semi-annual loan payments (debt service) The loans are payable in semiannual payments upon completion of the projects The amount of semi-annual payments is calculated based on the actual amount of the principal drawn under the agreements, as well as associated capitalized interest and loan issuance cost The semi-annual payment amounts are not determined until each project is completed.