Page 36 - 2019-20 CAFR

Rogue Community College

Fiscal Year Ended June 30, 2020

The primary major uses in capital financing activities include the payment of long-term debt. Cash used by

capital financing activities decreased by $1.3 million compared to the prior year. The decrease is related to

the capital construction activity in 2020.

The primary sources of investing activities is interest income. The cash provided by investing income

decreased $232,000, due to a decrease in interest rates and the reduction of unspent General Obligation and

Refunding bond proceeds, Series 2016B.

Capital Assets and Debt Administration
Capital Assets

The College’s investment in capital assets as of June 30, 2020, amounts to $51.7 million, net of accumulated

depreciation. Investment in capital assets includes land, buildings, improvements, machinery and equipment,
library collections, and infrastructure. Additional information on the College’s capital assets can be found in

Note 4 of this report.
Long-Term Obligations

At the end of the current fiscal year, the College’s total outstanding debt was $44.0 million. Of this amount,
$30.8 million is General Obligation and Refunding Bonds, and their related premium; $13.2 million is Limited

Tax Pension Obligation Bonds; all of which are backed by the full faith and credit of the College. The College’s

total debt decreased by $3.8 million during 2020. The College also has a compensated absences liability of

$805,000.
State statutes limit the amount of general obligation debt the College may issue to 1.5% of Real Market Value

of properties within the College’s district. As of June 30, 2020, the College’s general obligation debt is 0.06%
of Real Market Value. Based upon this, the College’s legal debt limit is $688.6 million, which is significantly

higher than the College’s outstanding general obligation debt of $27.4 million. Additional information on the
College’s long-term debt can be found in the Notes to the Basic Financial Statements, Note 5.

Pension and OPEB Obligations

At the end of the current fiscal year, the Pension and OPEB liabilities totaled $36.2 million. Of this amount,

$29.0 million is the pension liability and $2.2 million is the Pre-SLGRP liability. In addition, $5.0 million is the

College administered OPEB plan, while the Retirement Health Insurance Account administered by PERS has
an asset of $378,000. More information on the pension and OPEB obligations can be found in Note 8 and 9,

respectively.
Economic Factors and Next Year’s Budget
built on the basis of maintaining the financial stability of the District. The College sets
The College budget is

goals for financial stability enabling it to manage revenue shortfalls and cash flows to ensure continued

operations, and to provide for unforeseen contingencies without impairing service quality.

When preparing the 2020/21 budget, revenue and expenditure forecasts were prepared within the context

of the current economic conditions. As the global pandemic was an evolving situation which began at the end

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