Section III: General Long Term Liabilities In the notes of the financial statements, identify and read the note disclosures and statistical section that describe long-term debt. Analyze the entity's debt by addressing the following topics: a. Provide a summary of the information the government is providing overall about long-term liabilities and write in clear terms as though you are explaining it to an uninformed citizen. b. Describe and identify the following: the type of debt that is held in both governmental activities and business-type activities, what was the largest addition to debt this year, what was the largest reduction in debt this year, what has the biggest payment due within 1 year? Overall, do you feel their debt is manageable and sustainable over time? Why or why not? Identify any concerns that should be brought to the government's attention. c. Identify the 'Legal Debt Limit and Legal Debt Margin'. Describe in your own terms what this means. Is the information contained in the report explained in enough detail so that an intelligent reader (you) can understand how the limit is set, what debt is subject to the limit, and how much debt the government might legally issue in the year following the date of the report? Why or why not? d. Identify an important item that a user of the financial statements should draw their attention to. Provide a conclusion about their current debt status given what you read about the liabilities. RATIOS OF GENERAL OBLIGATION BONDED DEBT TO ASSESSED VALUE AND BONDED DEBT PER CAPITA Last Ten Fiscal Years (Amounts in thousands, except per capita amount) (1) See page 145 for the City's total assessed value of property. (2) See page 155 for the City's population data. RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years (Amounts in thousands, except per capita amount) Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) Includes Bond Anticipation Notes, MWPAT Notes, and Other Notes. (2) See page 155 for the City's total personal income data. (3) See page 155 for the City's population data. No Obligation Debt The City has outstanding industrial, commercial, and housing development bonds payable solely from revenues of the respective enterprises that do not constitute an indebtedness of the City and are not charged against its general credit. This aggregate amount is immaterial to the financial statements. Defeased Debt The principal amount of debt refunded through in substance defeasance transactions for governmental activities and still outstanding at June 30,2022 was approximately $55.6 million. Debt Capacity The City is subject to a dual general debt limit: the normal debt limit and the double debt limit. Such limits are equal to 5% and 10%, respectively, of the valuation of taxable property in the City as last equalized by the Massachusetts Department of Revenue. Debt may be authorized up to the normal debt limit without state approval. Authorizations under the double debt limit, however, require the approval of the Commonwealth's Secretary of Administration and Finance. Additionally, there are many categories of general obligation debt, which are exempt from the debt limit but are subject to other limitations. As of June 30,2022 , the City may issue $7.12 billion of additional general obligation debt under the debt limit. General obligation debt of $1.61 billion, subject to the debt limit, and $74.6 million, exempt from the debt limit, are authorized but unissued as of June 30, 2022. 11. Lease Liability The City is a lessee for noncancellable leases of buildings and equipment. The details of these noncancellable leases are as follows: The City's incremental borrowing rates, which varies depending on the length of the respective leases, were applied to those leases that do not have a specific interest rate. Lease asset activity for the governmental activities for the year ended June 30, 2022 was as follows (in thousands): Payments under lease agreements are subject to annual appropriation and, but statute, are not included in the City's debt limit calculations. The annual debt service requirements of the City's lease liabilities as of June 30, 2022 are as follows (in thousands): 0. Long-Term Obligations The annual debt service requirements of the City's general obligation bonds, notes and leases payable as of June 30 , Governmental Activities 2022, including subsidies to be received for Build America Bonds and Qualified School Construction Bonds, are as follows The following is a summary of the long-term obligations of the governmental activities of the City as of June 30, 2022 (in thousands): (in thousands): The payment of long-term obligations of the governmental activities, except for health and life claims, is the responsibility On April 13, 2022, the City issued $335.2 million of general obligation bonds for various municipal capital projects. Interest on the bonds are payable semiannually each May 1 and November 1 until maturity in fiscal year 2041. The City has entered into various financing agreements for equipment acquisition. Payments under these agreements are of the City's General Fund. Health and life claims are the responsibility of the City's Internal Service Fund. subject to annual appropriation and, by statute, are not included in the City's debt limit calculations. The City has no outstanding lines of credit