Board of Liquidation, City Debt · schedule' of bonded debt administered by the board of...

CITY OF NEW ORLEANSBOARD OF LIQUIDATION,

CITY DEBTAnnual Statement

December 31, 2007

www.boardofliquidation.com

BOARD OF LIQUIDATION, CITY DEBTNEW ORLEANS, LOUISIANA

DECEMBER 31, 2007

TABLE OF CONTENTS

Page

COMPOSITION AND AUTHORITY OF THE BOARD OF LIQUIDATION, CITY DEBT 3

LETTER OF TRANSMITTAL • 4

MANAGEMENT'S DISCUSSION AND ANALYSIS ' . . 5-9

INDEPENDENT AUDITOR'S REPORT ON FINANCIAL .STATEMENTS ' 10-11

FINANCIAL STATEMENTS

COMBINING STATEMENT OF ASSETS, LIABILITIES, AND CUSTODIAL, DEBTSERVICE AND RESERVE FUNDS BALANCES - MODIFIED CASH BASIS . 12

COMBINING STATEMENT OF CASH RECEIPTS, DISBURSEMENTS AND CHANGESIN LIABILITIES, AND CUSTODIAL, DEBT SERVICE AND RESERVE •FUNDS - MODIFIED-CASH BASIS 13

NOTES TO FINANCIAL STATEMENTS - MODIFIED CASH BASIS • . . . 14-20

SUPPLEMENTAL INFORMATION ' '

DEBT ADMINISTRATION COMBINING SCHEDULE OF ASSETS, LIABILITIES,AND DEBT SERVICE AND RESERVE FUNDS - MODIFIED CASH BASIS 21

ACCOUNT OF SEWERAGE AND WATER BOARD OF NEW ORLEANS COMBININGSCHEDULE OF ASSETS AND CUSTODIAL FUNDS - MODIFIED CASH BASIS 22

. ACCOUNT OF DOWNTOWN DEVELOPMENT DISTRICT OF NEW ORLEANS COMBININGSCHEDULE OF ASSETS AND CUSTODIAL FUNDS-- MODIFIED CASH BASIS ' 23

ACCOUNT OF AUDUBON PARK COMMISSION OF NEW ORLEANS COMBINING .. • SCHEDULE OF ASSETS AND CUSTODIAL FUNDS - MODIFIED CASH BASIS ' 24

ACCOUNTS OF SPECIAL TAXING DISTRICTS OF NEW ORLEANS COMBININGSCHEDULE OF ASSETS AND CUSTODIAL FUNDS - MODIFIED CASH BASIS .25

DEBT ADMINISTRATION COMBINING SCHEDULE OF CASH RECEIPTS,DISBURSEMENTS AND'CHANGES IN LIABILITIES, AND DEBT SERVICEAND RESERVE FUNDS BALANCES - MODIFIED CASH BASIS . .26

ACCOUNT OF SEWERAGE AND WATER BOARD OF NEW ORLEANS COMBINING. SCHEDULE OF CASH RECEIPTS, DISBURSEMENTS AND CHANGES IN

CUSTODIAL FUNDS - MODIFIED CASH BASIS ' 27

ACCOUNT OF DOWNTOWN DEVELOPMENT DISTRICT OF NEW ORLEANS COMBINING . 'SCHEDULE OF CASH RECEIPTS, DISBURSEMENTS AND CHANGES INCUSTODIAL FUNDS - MODIFIED CASH BASIS 28

ACCOUNT OF AUDUBCN PARK COMMISSION OF NEW ORLEANS COMBININGSCHEDULE OF CASH RECEIPTS, DISBURSEMENTS AND CHANGES -INCUSTODIAL FUNDS - MODIFIED CASH BASIS 29

BOARD OF LIQUIDATION, CITY DEBTNEW ORLEANS, LOUISIANA

DECEMBER 31, 2007

TABLE OF CONTENTS (CONTINUED)

Pace

SUPPLEMENTAL INFORMATION (CONT'D) '

ACCOUNTS OF 'SPECIAL TAXING DISTRICTS OF NEW ORLEANS COMBININGSCHEDULE OF CASH RECEIPTS, DISBURSEMENTS AND CHANGES INCUSTODIAL FUNDS - MODIFIED CASH BASIS ' 30

SCHEDULE' OF BONDED DEBT ADMINISTERED BY THE BOARD OF LIQUIDATION,CITY DEBT • . 31-33

NOTES TO SCHEDULE OF BONDED DEBT ADMINISTERED BY THE BOARD OFLIQUIDATION, CITY DEBT . . 34-35

SCHEDULE OF BOND SALES ' . 36

SCHEDULE OF DEDICATED AD VALOREM.TAX MILLAGE AVAILABLE FORSERVICING OF BONDED DEBT 37

NOTES TO SCHEDULE OF DEDICATED AD VALOREM TAX MILLAGE AVAILABLEFOR SERVICING OF BONDED DEBT . . 38

SCHEDULE OF SEWERAGE AND WATER BOARD MATURED 30NDS - DEBTADMINISTRATION • . '39

SCHEDULE OF DEFEASED BONDS - DEBT ADMINISTRATION 40

SCHEDULE OF ITEMIZED DISBURSEMENTS. - INTEREST, PRINCIPAL AND '' PREMIUM PAID •' 41-42

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN .AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

• WITH GOVERNMENT AUDITING STANDARDS ; ' ' 43-44

The Board of Liquidation, City Debt, is a body corporate composed of six citizens of the City ofNew Orleans. Three ex-officio members, consisting of the Mayor and the two Councilmembers-at-Large, makeup the board of nine members. The Board has exclusive control and direction ofall matters relating to the bonded debt of the City of New Orleans.

OFFICERS OF THE BOARD

, J. Thomas Lewis, PresidentMary K, Zervigon, Vice PresidentDavid W. Gernhauser, Secretary

Tracy David Madison, Assistant Secretary

COUNSEL

Lemle & Kelleher

Barbara Lament Norma E. Grace Mary K. ZervigonRichard P. Wolfe J. Thomas Lewis Vacancy

C. Ray Nagin, Mayor Ex-OfficioJacquelyn B. Clarksoa, Councilmember Ex-OfficioArnie Fielkow, Councilmember Ex-Officio

J.THOMAS LEWISPRESIDENT

MARY K. ZERV1GONVICE PRESIDENT

DAVID W.GERNHAUSERSECRETARY

TRACY DAVID.MADISONASST. SECRETARY

MEMBERS OF BOARD

NORMA E.GRACEBARBARA LAMONTJ.THOMAS LEWIS 'RICHARD P. WOLFEMARY K. ZERVIGON

JACQUELYN B, CLARKSON, EX OFF1CIOARNIE FIELKOW, EX OPFIC10C. RAYNAGlN, EXOFFICIO

0f1300 PERDIDO STREET - ROOM 8E17

drifisms, flzr. 70112

January 2, 2008

iebtAREA CODE 504

658-1410(FAX) 658-1411

www.boardofliquidation.com

President and Members .Gouncil of the City of New OrleansCity HallNew Orleans, Louisiana 70112

Ladies and Gentlemen:

Under the provisions of the Constitution of Louisiana of 1921, made statutory by theConstitution of Louisiana of 1974, the Board of Liquidation, City Debt, is required to submit tothe Council of the City of New Orleans a detailed report of all receipts and expenditures and alltransactions of the Board of Liquidation, City Debt.

These transactions are reported for the twelve month period ending December 31, 2007for the Bonded Debt administered by the Board of Liquidation, City Debt, for the accounts of theSewerage and Water Board of New Orleans, the Audubon Park Commission of New Orleans, theDowntown Development District of New Orleans, the Audubon Area Security District, theGarden District Security Tax District, Huntington Park Subdivision Improvement District, theLake Carmel Improvement District, the Lake Forest Estates Improvement District, the Lake OaksSubdivision Improvement District, the Spring Lake Improvement District, the Touro-BoulignySecurity District, the Twinbrook Security District, and the Upper Hurstville Security District.

David W. Gemhauser

BOARD OF LIQUIDATION, CITY DEBTMANAGEMENT'S DISCUSSION AND ANALYSIS

DECEMBER 3J, 2007

Introduction

Within this section of the Board of Liquidation, City Debt's {the '"Board") annualfinancial report, management provides narrative discussion and analysis of thefinancial activities of the Board for the fiscal year ended December 31, 2007. TheBoard's financial performance is discussed and analyzed within, the context of theaccompanying financial statements and disclosure following, this section. Additional

• information is available in the transmittal letter which precedes the Management'sDiscussion and Analysis. The discussion focuses on the Board's primary government, andunless otherwise noted, these are no 'component units to be reported separately from theprimary government. • •

Fund Accounting

The Board maintains one Fiduciary Fund to account for its activities, the Agency Fund.An Agency Fund is used to account for assets held for other funds, governments, orindividuals. Accordingly, the accounts,of the Board are organized and maintained onthe basis of funds, each of which is considered a separate accounting' entity, and ismaintained for the' purpose of attaining objectives in accordance with the variousspecial restrictions, regulations and limitations..

Overview of Financial Statements

Management's Discussion arid Analysis introduces, the Board's basic financial statements.The basic financial statements -are comprised of one fiduciary fund and includes:

(1). The Combining Statement of Assets, Liabilities and Custodial, Debt Service andReserve Funds - Modified Cash Basis, (2) The Combining Statement of Cash Receipts,Disbursements and Changes in Liabilities'and Custodial Debt Service and Reserve Funds -Modified Cash Basis', and (3) Notes to the financial statements.

The Board also includes in this report additional information to supplement the basicfinancial statements. . .

Basic Financial Statements

The Combining Statement of Assets, Liabilities and Custodial, Debt Service and ReserveFunds - Modified Cash Basis presents all the assets and liabilities administered by theBoard. Over time, increases and decreases in the balances presented on this financial'statement may be useful indicators of whether' the financial position of the Board isimproving or deteriorating. However, evaluation of the economic health of the Boardwould extend to other non-financial factors such as the diversification of the taxpayerbase in addition to. the financial information provided in this report.

The Combining Statement.of Cash Receipts, Disbursements, and Changes- in Liabilities andCustodial, Debt Service and Reserve Funds - Modified Cash Basis, reports'the Board'sinflows and outflows of cash. The purpose of the report is. to show the 'sources anduses of funds administered by the Board.

Notes to Financial Statements

The accompanying Notes to 'Financial Statements provide information essential to a fullunderstanding of the Board's financial statements. The notes to the financialstatements begin immediately following the basic financial statements.

BOARD OF LIQUIDATION, CITY DEBTMANAGEMENT'S DISCUSSION'AND ANALYSIS

(Continued)DECEMBER 31. 2007

Other Information •

In addition to the basic financial statements and accompanying notes, this report alsopresents certain Supplemental Information. This supplemental information includes:

Combining Schedules of Assets, Liabilities and Debt Service, Reserve and CustodialFunds for all activities administered by the Board; Combining Schedules of CashReceipts, Disbursements and Changes in Liabilities, Debt Service, Custodial and ReserveFunds for all activities administered by the Board; details of bonded debt administeredby the Board; details of bond sales during the year; details of ad. valorem ta.x rnillageavailable to service bonded debt, details of certain disbursements made during theyear. Supplemental information follows the notes to the financial statements..

Financial Analysis of the Board's Funds

As year-to-year financial information is accumulated on a consistent basis., changes infund balances may be observed and.'used to discuss the changing financial position ofthe Board as a whole.

Fiduciary Funds

The Debt Service and Reserve Funds in the Debt Administration-section of the financialreport have a fund balance of $73,882,095. The Tax Credit Bond loan payable balanceof $100,312,712 is a result of the Board and the custodial agencies entering intoCooperative Endeavor Agreements with the State of Louisiana to secure proceeds from theGulf Opportunity Tax Credit Bond Loan Program. Escrow accounts were created at HancockBank to make debt service payments on outstanding bonds for governmental agencies,affected by Hurricanes Katrina and Rita. The General Obligation Debt.Service Funds aredesignated, for future debt service payments and were included, in calculating themillage necessary to service the General Obligation Debt for 2008. The .2008 millagelevy is 23.8 mills, down from 31.1-mills in 2007. A key factor in rolling back themillage is the positive increase in gross assessments of property values in the Cityof New Orleans during the reassessment year. This favorable trend along with an 85%ad valorem tax collection rate .provided a Debt. Service Fund balance to carry forwardto 2008 and allowed the millage rate to decrease.

The following table provides'a summary of the Board's assets, liabilities, custodial,debt services and reserve funds and the related changes in receipts over disbursements:

Debt Administration2007 2QQ6 • Changes

Total assets . $101,829,065 $ 89,753,746 $ 12,075,319

Total liabilities ' $ 27,946,969 $ 25,765.542 $ 2,181,427.

Total custodial debt service andreserve fund . '5 73,882/096 $ 63', 988,204 * $ 9,893,892

Receipts • ' • $212,363,384' $303,516,799 • Sf96,153.415)

Disbursements • $200,268,065 ' '$277,145,912 S (76,857,847)

Excess (deficiency) of receiptsover disbursements $ 12,075,319 $ 31,370,887 $ fl9,295.568)


<Continued). DECEMBER .31, 2007

'Total assets

Total liabilities

.Total custodial debt service andreserve fund

Receipts

Disbursements

Excess (deficiency) of receiptsover disbursements

Custodial Accounts'2007 2006

$153,506,490

$ 72,695,503

$ 157,837,734

$ 43,996.949

Changes

$ (4, 331,244.:

$• 28,698,554

$ 80,810,987 $ 113,840,785 $ (33,029,7981

$ .97,412,842 $ 152,827, 917 $ (55,415,0751

$101,744,085 $ 260,-571, 673 $(158.827,588)

$ (4,331,243) ' $(107,743, 756) $ 103,412/513

Totals

Total assets.

Total liabilities

Total custodial'debt, service andreserve fund

Receipts ' •

Disbursements

Excess (deficiency) of receiptsover disbursements

2007

$255,335.550

5100.642.473

5154,693,083

$309,776,226

$302,032.150

$ 7,744,076

2006

$247,591,480

• 5 69,762,491

$177,828,989

$461,344, 716'

$537,717,585

Changes.

$ 7,744,070

$ 30.879,982.

$ (23,135,906)

5(151.568.4901

5(235,685,435)

$(76,372, 869) $ 84,116,945

Key Changes in Assets and Liabilities include:

Assets increased in debt administration due .to better than expected ad valoremtax receipts.

Assets decreased in the custodial accounts due to decreased receipts and payment. of debt. '

• Liabilities increased primarily due to the Gulf Opportunity Tax Credit Bond LoanProgram loan proceeds drawn down and used during 2007.

Key changes in receipts include:

Debt Administration

Ad valorem tax receipts increased $5,155,290.

V Bond proceeds increased $51,512,127;

Debt service funds decreased $30,151,218. . ' .

Debt service from the Gulf Opportunity Tax Credit Bond Loan Program loandecreased $38,509,370.


(Continued)DECEMBER 31, 2007

Debt Administration (Cont'd)

Debt administered cost of issuance decreased $166,172.

Interest, on investments increased $2,114-, 409. This was primarily due to advalorem taxes being collected in January as normal.

Excess debt service and reserve increased $296,854.

Custodial Accounts

Ad valorem taxes increased $13,473,182.

Interest on investments increased $220,093.

FEMA reimbursements decreased $31.3 million.

Key changes in disbursements include: •

Interest payments decreased $5,748,909. This follows the debt service schedule.•

Principal payments were $147,754,476 less. 2006-decrease was attributed to debt

refunding of Sewer BANs. .

Insurance on new bonds was- paid from the Fiscal Agent Account in 2007 resulting

• ' in a $727,236 increase.

Debt service payments from custodial accounts decreased $128,577,262.

Contract services decreased $150,000.

•. Funds returned to Sewerage and Water Board increased $353,468.

Funds to Audubon Park Commission increased $289,609 due to excess debt service

funds drawn in 2006 returned in 2007.

Cost of issuance and discounts increased $79,.431 due to a bond sales in 2007.

.Long—term Debt Administration

At the end of the fiscal year, the Board administers total bonded debt outstanding-of$538,514,462 in General Obligation. Bonds, and $30,045,000 in Limited Tax Bonds. TheGeneral Obligation Bonds are backed and fully funded with an unlimited ad valorem taxlevy through the Board's statutory authority. The Limited Tax Bonds are supported bya voter approved tax millage of 2.5 mills collected by the City of New Orleans andremitted to the Board daily. Other Custodial, long-term debt is supported by voterapproved special tax millages and revenues generated through the custodial agency.Debt service is collected•from these custodial special taxes to pay debt service onspecial tax bonds. Debt service on the Revenue Bonds are supported by revenuesremitted to the Board on a monthly basis by the Sewerage and Water Board of NewOrleans

Outstanding bonds- -administered by the Board at December 31, 2007 and 2006 are asfollows: .



Long-term Debt Administration (Cont'd)

City of New Orleans:General Obligation BondsLimited Tax-Bonds

Sewerage & Water Board of New Orleans:

Drainage System BondsSewerage Service Revenue BondsSewerage Service Revenue BondsAnticipation Notes

Water Revenue Bonds

Audubon Park Commission:

Audubon Park Improvement BondsAudubon Aquarium Bonds

Downtown Development District:

Downtown Development District Bonds

2007

$538,514,462$ 30,045,000

$ 23,835,000$172,065,000

$ 24,030,000$ 40,069,000

$ 6,125,000

2006

$478,419,936$ 31,550,000

$ 24,905,000$189,465,000

$ 24,030,000$ 42,510,000

$ 2,870,000$ 36,333,572

$ 6,525,000

Bond Ratings

Bond ratings for the General Obligation Bonds of the City of New Orleans were upgradedby Moody's Rating Service and Fitch Rating Service to Baa3 and BBB- respectively Withinvestment grade ratings. Standard & Poor's Rating upgraded the general obligationbonds to BB, still non investment grade. These ratings are a result of the effects ofHurricanes Katrina and Rita. The Board officials as well as the City of New Orleansadministration continue to meet with the rating agencies and expect a favorable reportfrom the rating agencies when the City plans to issue bonds in 2008.

Contacting the Board's Financial Management

This financial report is designed to provide a general overview of the Board'sfinances, compliance with finance-related laws and regulations, and demonstrate theBoard's commitment to public accountability., If you have any questions about thisreport or would like to request additional information, contact the Board at Board ofLiquidation, City Debt, 1300 Perdido Street, Room 8E17, New Orleans, Louisiana 70112.

SPILSBURY, HAMILTON, LEGENDRK & PACIERA, ixcCERTIFIED PUBLIC ACCOUNTANTS

KIRTH M. PACIERA, C.P.A. 32°9 ^GELAKE DRIVE, SUITE 200RENEG.GAUTREAU.C.PA METAIRIE, LA 70002TIMOTHY L PRIEST, C.PA . (504)486-5573 SIDNEYT. SPILSBURY, C.PA

r- /2^v 7«Vo™< (1905-1985)MEMBERS OF FAX (504) 486-6091 KEITH T. HAMILTON, C.PA

AMERICAN INSTITUTE OF ,_, (1932-2003)CERTIFIED PUBLIC ACCOUNTANTS • www.shlpcpa.com LEROY P. LEGENDRE, C.PA

SOCIETY OF LOUISIANA . (Retired)CERTIFIED PUBLIC ACCOUNTANTS

Mr. J. Thomas Lewis, President, and MembersBoard of Liquidation, City DebtNew Orleans, Louisiana

We have audited the accompanying financial statements of the Board ofLiquidation, City Debt, a component unit of the City of New Orleans, asof and for the year ended December 31-, 2007 as listed in the table ofcontents. These financial statements are the responsibility .'of themanagement of the Board of Liquidation,.City Debt. Our responsibilityis. to express an opinion on these financial statement's based on ouraudit. ' • . •

We conducted- our audit in accordance with U.S. -generally acceptedauditing standards and standards applicable to financial auditscontained in Government Auditing Standards, issued 'by the ComptrollerGeneral of the United States. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether thefinancial statements are free of•• material, misstatement. An auditincludes examining,, on a test basis, .-evidence supporting the amounts anddisclosures in the financial statements. An audit also includesassessing the'accounting principles used and significant estimates madeby management, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis .-forour opinion.

As described in Note B, the Board of Liquidation, City Debt prepares, itsfinancial statements on the modified cash basis -of accounting, which isa comprehensive basis of accounting other than'U.S. generally accepted'accounting principles. •

Iri our opinion,- the financial statements referred to ab9ve presentfairly, in all material respects, the assets, liabilities, custodial,and debt service and reserve fund balances of the Board of Liquidation,City Debt, at December 31, 2007, and cash receipts, disbursements andchanges in liabilities, custodial and debt service fund balances for theyear then ended, on the basis of accounting described-in Note B.

10

Mr. Jr. Thomas Lewis/ President, and MembersBoard of Liquidation, City Debt

In accordance with Government Auditing Standards, we have also issuedour report dated May 12, 2008 on our consideration' of the Board ofLiquidation/ City Debt's internal control over financial reporting andour tests of its compliance with certain provision of laws, regulations,contracts, and grant agreements and other matters. The-purpose of thatreport is to describe the scope of our testing of internal control overfinancial reporting and compliance and the results of that testing, andnot to provide an opinion on the internal control over financialreporting or on compliance. That report is an integral paxt of an'auditperformed in accordance with Government Auditing Standards and should beread in conjunction with this report in considering the results of'.ouraudit.

The management7s -discussion and analysis on pages 5 through 9 are not arequired part of the basic financial statements but are supplementaryinformation required by accounting principles generally accepted in theUnited States, of America. We have applied certain limited procedures,which consisted principally of- inquiries of management regarding 'themethods, of measurement and presentation of the required supplementaryinformation. However, we did not audit the information and express noopinion on it.

Our audit was conducted for the purpose of forming an opinion on thefinancial statements taken as a whole. The accompanying supplementalinformation • listed, in' the table of contents is presented for thepurposes of additional analysis, and is not a re'quired part 'of thefinancial statements of -the -Board of Liquidation, City Debt. Suchinformation has been subjected to the'auditing procedures applied in theaudit, of the financial statements, and in' our opinion is fairly statedin all material respects in relation to the financial statements'takenas a whole. . • .. • . .

May 12, 2008

SFILSBURY, HAMILTON, LEGENDHE & PACIERA, LLC -, 1CERTIFIED PUBLIC ACCOUNTANTS ' ' 1J-

FINANCIAL STATEMENTS

BOARD OF LIQUIDATION, CITY DEBTFIDUCIARY.FUND*TYPE - AGENCY FUND

COMBINING STATEMENT OF ASSETS, LIABILITIES, AND CUSTODIAL,DEBT SERVICE AND RESERVE FUNDS-MODIFIED CASH BASIS

DECEMBER 31, 2001

Debt

AdministrationAccount of Sewerage

& Water Board

CashCash - Paying Agent

Certificates of deposit

U.S. Treasury Bills-cost

Total AssetsLIABILITE5 AND CUSTODIAL, DEBT

SERVICE AND RESERVE FUNDS

Interest payablePrincipal payablePrincipal payable-Paying AgentTax Credit Bond loan payableReserve fundsDebt service funds

Custodial fund balance (deficit)

Total Liabilities, and Custodial,

Debt Service and Reserve Funds

$

$

$ •

$

7 7 , 7 4 6 $60 ,300

100,837,5358 0 3 , 4 8 4

101,829,065 $

93,260 $" 176,200

60,3002 7 , 6 1 7 , 2 0 953 ,614 ,0942 0 , 2 6 8 , 002

0

101,829,065 $

349,3380

76, 180; 00066,601,312

143,130,650

000

6 4 , 6 5 9 , 9 7 700

7 8 , 4 7 0 , 6 7 3

143,130,650

See accompanying notes to .financial statements.

Account ofDowntown

DevelopmentDistract

Account ofAudubon ParkCommission

Accounts ofSpecial Taxing

Districts• Total

(Memorandum Only)'

11,6350

2,995,0004,179,874

• 3,0430

1,163,000

727,922

29,6580

364,000

901,709

4 7 1 , 4 2 060, 300

181,589, 53573 ,214 ,301

7 ,186 ,509 1,893,965 1,295,367 255,335, 556

000

9 0 6 , 2 4 600

6 , 2 8 0 , 2 6 3

7,186,509

000

7, 129,23100

(5 ,235 ,316)

1,693,965

00'0000

1 ,295 ,367

1,295,367 $

93, 260176,200

60, 300'100,312, 713

53,614, 0942 0 , 2 6 8 , 0028 0 , 8 1 0 , 9 8 7

255,335,556

12

BOARD OF LIQUIDATION, CITY DEBTFIDUCIARY FUND TYPE - AGENCY FUND

COMBINING STATEMENT OF CASH RECEIPTS, DISBURSEMENTS, AND CHANGES IN LIABILITIES,AND CUSTODIAL, DEBT SERVICE AND RESERVE FUNDS-MODIFIED CASH BASIS

YEAR ENDED DECEMBER 31, 2007

Debt

Administration

RECEIPTS

Ad valorem taxes-Current year $ 55,346,753Ad valorem taxes-Prior years 6,717,538Bond proceeds . 75,146,655Revenue sharing-State of Louisiana 0Debt service funds 38,476,466

Debt service-tax credit bond loan . 30,898,032Cost of issuance bond proceeds 2,872Fee-Current year 0Fee-Prior year 0Interest on investments . 4,414,807Reimbursement from EPA 0

Tax Credit Bond loan proceeds 0Excess reserve and debt service funds 1,360,261

Total receipts

DISBURSEMENTSInterest on bonds ' 57,840,839

Principal on bonds 63,875,474Warrants 0

Debt service . 0Personal services 328,532Contractual services 113,344Legal and office expenses 23,014

Funds returned to City of New Orleans, 658,379

Sewerage & Water Board, and Audubon Park Commission 76,510,813

Cost of issuance-bond issue 210,434Cost of issuance-tax credit bond loan - . 727,236

Total disbursements 200/288,065

Excess (Deficiency) of receipts over disbursements 12,075,319

Liabilities, and Custodial Debt Service andReserve Funds at;December 31, 2006 " 89,753,746December 31, 2007 _ $

See accompanying notes to financial statements.

Account ofSewerage & Water

Board

$ 37,035,1844 , 1 4 9 , 9 8 1

0544 ,553

00000

• . 8,429,34938,189

24,165,9031,110,867

. 7 5 , 4 7 4 , 0 2 6

00

56,283,87224,161,051

00.o -

.0000

8 0 , 4 4 4 , 9 2 3

( 4 , 9 7 0 , 8 9 7 )

143,101,547$ 143,130,650

Account ofDowntown

DevelopmentDistrict

$ 4 ,951,294618,680

00

367,92900 -00

4 7 9 , 7 4 40-. .

538,31717,542

6,973,506

00'

6 , 5 0 8 , 2 6 4538,318

0 •' 0

000 .00

7 ,046 ,582

(73,076)

7,259,585$ 7,186,509

Account ofAudubon Park

Commission

$ 7,493,1911,021,615

395,4720

2 9 0 , 4 5 000

: ' o0

69,1290

3,994,33415,960

13,280,151

00

8,827,4503,994,334

o •000000

12,821,784

458,367

1,435,598$ 1,893,965

Accounts ofSpecialTaxing

Districts

$ 791,1413 , 4 6 0

0000

' 0757,93351,31781,308

• '0 .0

• 0'1,685,.159

00

. 1 , 430 ,79600 .00 •00 .

'o'0

1,430,7.96

254,363

1,041,004. $ 1,295,367-

Total (MemorandumOnly}

$ 105,617,56312,511,27475,542,127

544,55339,134,845'30 ,898 ,032

2,872. 757,933

• 51,31713,474,337

38,18928,698,554

2 ,504 ,630309 ,776 ,226

57,840,83963 ,875 ,47473,050,382 '28,693,703 '

328,532113,344

23,014.658,37.9

.76,510,813210,434727,236 '

302,032,150

7 , 7 4 4 , 0 7 6

247,591,4805 255., 335, 556.

13

BOARD OF "LIQUIDATION, CITY DEBTNOTES TO FINANCIAL STATEMENTS-MODIFIED CASH BASIS

DECEMBER 31, 2007

A. General Information

The Board of Liquidation, City Debt (the "Board") is a component unit of theCity of New Orleans {the "City"). The Board has • exclusive control anddirection of all matters relating to the bonded debt of the City of NewOrleans. Accordingly, all of .the City of New Orleans general obligationbonds, and the revenue and limited tax bonds issued for the Sewerage andWater Board of New' Orleans, the Downtown Development District of NewOrleans, and the Audubon Park Commission of New Orleans are sold by andthrough the Board. No bonds may be sold without approval of the members ofthe Board. All property taxes levied by the City and dedicated to thepayment .of outstanding general obligation and limited tax bonds arecollected by the City and, as required by law, paid over to the Board, dayby day as. collected. Such tax revenues are invested in fully securedcertificates of deposit and/or full faith.and credit obligations of theU.S. Government until applied by the Board to the payment of principal andinterest on outstanding bonds.

The Board annually determines the amount of Ad Valorem Tax milla.ge necessary tobe levied and. collected by the City in the next fiscal year for thepayment during such year of.principal and interest on all outstandinggeneral obligation bonds of the City and all such general obligation bondsproposed to be issued by the City in such year.. This determination isbased upon an .analysis by the- Board of the current, and anticipatedassessed value of taxable property in the City and current and anticipatedcash reserves held by'the Board. The assessed value of property in the

• • City of New Orleans for each year is determined by the Board of Assessors,comprised of seven elected officials, and certified by the Louisiana TaxCommission .as complying with the Louisiana Constitution of 1974. Theannual determination of ,the necessary tax millage to service bonds of theCity is adopted by resolution of the Board that is submitted to the CityCouncil. The millage recommended by the Board is then levied by the CityCouncil.. . •

No general obligation bonds, special tax bonds, or revenue bonds of the agenciesmentioned above may be' issued by the City without the approval of theBoard of Liquidation, City Debt, and. the Council of the City of NewOrleans. The Board requires as a condition of such approval that a) thereasonably anticipated property tax revenues .of the City be adequate toservice the proposed bond issue and all. outstanding bonds of the City andto maintain reasonable.reserves, b) the proposed bond issue comply withany applicable legal debt limitation, and c) the purposes for which the

• bonds are sold be capital in nature. All new general obligation bondissuance must- be approved by a majority of the voters in the City. Act 1of 1994 by the Louisiana.Legislature establishes the 'legal debt limit forthe City of New Orleans. Act 4 of 1916, as amended, by the LouisianaLegislature- and Article VI, Section 33 of the Louisiana Constitution of.1974 provides that the full faith and credit of the City of New Orleansare pledged for- its general obligation bonds and the City is authorized tolevy taxes upon all taxable property in the City without limitation'ofrate or amount sufficient to pay the principal and interest on such bondsas they mature.

14

BOARD OF LIQUIDATION, CITY DEBTNOTES TO FINANCIAL STATEMENTS-MODIFIED CASH BASIS.

(Continued)DECEMBER 31. 2007 '_

General Information (Cont'd)

The Board of Liquidation issues bonds for the Sewerage and Water Board of NewOrleans, the Downtown Development District of New Orleans, and the AudubonPark Commission of New Orleans. Issued in the name of the. City of NewOrleans, these bonds may be funded by the dedicated rnillage or water andsewer rates. The Sewerage and Water Board, the Council of the City of NewOrleans, and the Board of Liquidation, City Debt, must approve the waterand sewerage service rates necessary to fund any bonds. Ad Valorem Taxmillage necessary to service special .tax bonds is.' set by statute andlevied by the. Council of the City of New Orleans each year. Ad Valorem Taxmillage necessary to service the general obligation'bonded'debt each yearis determined by the Board of Liquidation/ City Debt, and is levied by theCouncil of the City of New Orleans annually.

In addition, the Board of Liquidation, City Debt, serves in a custodial capacityfor the accounts of the Sewerage and Water Board of New Orleans/ theDowntown Development District of New Orleans-, the Audubon Park Commissionof New Orleans, the Lake Forest Estates Improvement.District, the GardenDistrict Security Tax District, the Springlake Improvement District, theAudubon Area. Security District, the Lake Carmel' Subdivision ImprovementDistrict, the Huntington Park Subdivision Improvement District, theTwinbrook Security District, the Touro-Bouligny•Security. District, the•Lake Oaks Subdivision Improvement District, and the Upper HurstvilleSecurity District.

Funds collected'for these agencies are deposited in special accounts or investedin Certificates of Deposit and/or full faith and credit' obligations of the.U.S. Government. The Board of Liquidation, City Debt, pays any expendituremade from these accounts as authorized -by 'warrants and supportingresolutions of the various agencies.

Administration expenditures paid in connection with the operations' of the Boardare recorded within Debt Administration.

B. Summary of Significant Accounting Policies

• Fund Accounting . . •

The Board maintains' one Fiduciary Fund to account for its activities, the-AgencyFund. An Agency fund is used to account for assets held for other funds,governments, or individuals. Accordingly, 'the accounts of the Board areorganized and maintained on the basis of funds, each, of which isconsidered a .separate accounting entity, and is maintained for the purposeof attaining objectives in accordance with . the various specialrestrictions, regulations and limitations. . •

Method of Accounting

The Board prepares its financial statements on the modified cash basis ofaccounting wherein receipts are recognized when received rather than whenearned and disbursements are recognized when disbursed rather than whenincurred, except for matured and unpaid bonds and coupons and the taxcredit bond loans, which are reflected as -liabilities when the obligationis incurred.

15

BOARD OF LIQUIDATION, CITY DEBTNOTES'TO FINANCIAL STATEMENTS-MODIFIED CASH BASIS


C. Cash, Escrow funds and Time Certificates of Deposit

At December 31, 2007, the Board's deposits with banks consisted of cash totaling$471,420, and time certificates of deposit of $181,589,535. Thesedeposits were covered by Federal Deposit Insurance or by collateral heldby a third party in the Board's name.

D. Funds Held in Trust

. At December 31, 2007, the Board's paying agent, the Bank of New York, washolding cash in trust of $60,300. . These, funds are to be used to paymatured or called bonds when they are presented for payment. Also, therelated bonds payable is included in the principal payable balance atDecember 31, 2007. The Bank of New York in the Board's name holds theseinsured deposits. _

E. Bank Balances . •

At December 31, 2007, the Board had bank balances of cash and certificates of.deposits categorized as follows:

Insured . $ 461,306• ' - Collateralized . 182.649,176

Total Bank Balances ' . . $183.110,482

F. Investments .

Investments are stated at cost. At December 31, 2007 the carrying amount of theBoard's investment in U.S. Treasury Bills was $73,214,301 with a marketvalue of $73,841,423. The Board's agents in the Board's name hold theseuninsured and unregistered investments.

• G. Annual and' Sick Leave

All present employees of the Board are permitted to accumulate annual and sickleave. Upon termination of employment, an employee is paid for theiraccumulated annual leave based on his current hourly rate of pay, and fortheir accumulated sick leave on a formula basis. If termination is the

' result of retirement, the employee has the option of converting their• ' accrued sick leave to additional years of service. At December 31, 2007

this amount totaled $90,037'.

H. Pension Plan

Employees of the Board are covered under a City of New Orleans Employees'Pension Plan,, a single-employer, and contributory defined benefit pensionplan. The plan issues a publicly available financial report that 'includesfinancial statements and required supplementary information for the plan.This report may be obtained by writing or-calling the plan at:

Employee Retirement System of New Orleans1300 Perdido Street, Room 1E08New Orleans, Louisiana 70112(504) 299-4150

' 1 6

BOARD OF LIQUIDATION, CITY DEBTNOTES TO FINANCIAL STATEMENTS-MODIFIED CASH BASIS


H. Pension Plan (Cont'd)

Under this plan, employees with thirty years of service, or who attain age sixtywith ten years of service, or age sixty-five, irrespective of length ofservice are entitled to a retirement allowance.. The retirement allowanceconsists of an annuity, which is the actuarial equivalent of the employeesaccumulated contribution plus an annual pension, which, together with the.annuity, provides a total retirement allowance equal to 2% to 4% ofaverage compensation times the number of years of service. The maximumpension may not exceed 100% of.average compensation. Pension, amounts arereduced for service retirement prior to age sixty-two. Averagecompensation is defined as average .annual earned compensation for thehighest thirty-six consecutive months of service. Mandatory retirementage is seventy.

Pension benefits vest at age sixty or after completion of ten years of service.The Employees' Pension Plan also provides death and disability benefits.

Employees contribute 4% of their salary per year. Employer contributions to.theplan are ' based upon the amount necessary to fund normal cost and.amortization of past service costs over a period of thirty years beginningJuly 1,. 1974, using the level percentage of payroll method. The Board's' .contributions to the Plan during the year totaled $20,659. .•

I. . Tax Credit. Bond Loan Program

On July 19, .2006 the Board of Liquidation, City Debt entered into CooperativeEndeavor Agreements with the State of Louisiana to secure proceeds from .the State's Gulf • Opportunity Tax Credit Bond Loan Program. These•agreements are Intended for the following purposes:

Paying debt service of the City of New Orleans on outstanding debt forgeneral obligation and. special limited tax bonds.

Paying outstanding debt for special tax bonds of the:

Downtown Development District,

Audubon Commission, and ' '

Sewerage and Water Board of New Orleans, and

Paying outstanding sewerage revenue and water revenue bonds of the• Sewerage and Water Board. . •

The loan proceeds will be held in escrow at Hancock Bank and distributed to theBank.of New York, the Board of- Liquidation's paying agent, as debt servicematurities become'payable. The amounts in escrow are not recorded on'thebooks until these transfers take place. • Once transferred, the debtservice payments are made and the loan proceeds' are recorded as loanspayable in the appropriate'custodial accounts.

These loans mature on July 15., 2012, at which time the borrower can either applyfor a five year deferment, pay the' loan in full or make semi-annualpayments in accordance with the .twenty-five year debt service schedulethat ends on July 15, 2026.

17-


(Continued).DECEMBER 31, 2007

I. Tax Credit Bond Loan Program (Conf d)

Total amounts available under these loans are:

Cooperative Endeavor Agreement between the State and:

Board of Liquidation:

General obligation bondsLimited tax bonds

'• 27, 617,209

Downtown Development District 1,600,153

Audubbn Park Commission: , ' -

Audubon Park Commission .44 Mills .1,091,230Audubon Park Commission 4.11 Mills 10,759,776

11,851,006

. Sewerage and Water Board . 77-, 465.247

: ' $118,533,615.'

Borrowings as of December 31,. 2007 were:

Cooperative Endeavor Agreement between the State and:

Board of Liquidation:

General obligation bonds , ' $ 24,713,549.Limited tax bonds " • . . .. 2,903,660

• . - ' 27,.617,209

Downtown Development . District '. 906,246 -

Audubon Park Commission: .'

Audubon Park Commission .. 44 Mills 657,7.15Audubon Park Commission 4.11 Mills 6,471,566

. ' • . . ' . " ' 7,129,231

Sewerage and Water Board . 64,659.977

$100,312,713

As of December, 31, 2007, the $24,713,549 available for general obligation bondswas borrowed to make fiscal year 2006 debt service payments. ;

As of December 31, 2007, the $2,903,660 available for the City of New OrleansLimited' Tax bonds was borrowed to make the debt service payment that weredue'September 1, 2006 and'the March 1-, 2007.

18

BOARD OF LIQUIDATION, CITY'DEBTNOTES TO FINANCIAL STATEMENTS-MODIFIED CASH BASIS


I. Tax Credit Bond Loan Program (Cont'd) .

As of December 31, 2007, $906,246 of the $1,600,153 available for the DowntownDevelopment District was borrowed to make the debt service payments whichwere due on December 1, 2006;. June !•, 20-07 and December 1, 2007. Theremaining balance of $693,907 will be borrowed to make debt servicepayments through June 1, 2009 as follows:

20082009

Total • . $693,907

As of December 31, 2007, $7,129,281 of the $11,851,006 available for the AudubonPark Commission was borrowed. The remaining balance of $4,721,725 will beapplied to debt service payments on Zoo Special Tax Bonds through June 1,200'9 and Aquarium Special Tax Bonds through April 1, 2009 as follows:

2008 ' . $4,003,0722009 -718,653

Total • ' $4,721,725

In addition to the above loans, the Audubon.. Park Commission's Cooperativeendeavor agreement includes an additional $4,907,500 for their 1997Ac^iarium Revenue Bonds. These bonds are not part of the Board'sresponsibility; 'accordingly, the related loan is not included in theaccompanying financial statements.

As of December 31,. 2007, $64,659,977 of .the $77,465,247 available for the-Sewerage and Water'Board of New Orleans was borrowed. $33,159,977 was usedto make debt service payments on the Drainage System special tax bonds,the Sewerage Service revenue bonds, and the Water revenue bonds that weredue on December 1, 2006, June 1, 2007, and December 1, 2007. $31,500,000was used to make a partial payment on the maturing Sewerage ServiceRevenue bond anticipation notes, that matured on July 26, 2006. Theremaining balance of $12,805,270 will- be borrowed to make debt servicepayments through June--l, 2008 as follows:

2008 • '. $12,805,270

Debt service payments made-through the Gulf Opportunity Tax Credit Loan Programin the current year are recorded as defeased bonds and listed separatelyfrom the outstanding bonds of the Audubon Commission; Downtown DevelopmentDistrict; and Sewerage and Water Board of New Orleans.

19


(Continued)DECEMBER 31, 2007 .

J. • Advance Refunding and Defeased Bonds •

On July 6, 2-005, the City of New Orleans entered into a transaction whereby itissued $105,280,000 of general obligation ' bonds for the purpose ofrefunding a portion of its outstanding general obligation bonds atDecember 31, 2005. Net proceeds from issuance of the refunding bonds wereplaced in an irrevocable escrow account along with general obligationbond debt service funds collected and invested in U.S. Treasuryobligations that/ together with the interest earned thereon, will provideamounts sufficient for payment of all principal and interest on therefunding bonds.. Accordingly, the escrow account and the refunded bondsare not included in these financial statements. At December 31, 2007, theoutstanding balance of the refunded general obligation bonds .totaled$27,005,000. .

As mentioned in Note I, the Board of Liquidation, City Debt entered intoCooperative Endeavor Agreements with the .State of Louisiana, DowntownDevelopment District, Audubon Commission, and Sewerage and Water Board o-fNew Orleans to secure proceeds from the State's Gulf Opportunity" TaxCredit Bond Loan Program in the amounts of $1,600,153, $11,851,006, and$77,465,247 respectively. . These proceeds were placed in an irrevocableescrow account at. Hancock Bank, held to fund debt service payments and.wired to the Board of Liquidation, City Debt paying agent, Bank of NewYork, on the maturity dates designated- in the agreements and defea.singliability of the bonds paid to the issuing agency. Accordingly, theescrow account and defeased bonds are'not included in these financialstatements. At December 31, 2007, the outstanding balance-of the bondsdefeased by the Gulf Opportunity Tax Credit Loan Program were as-follows:

Downtown Development District Bonds $ 205,000.Audubon Commission Zoo Bonds $ 235,000Audubon Commission Aquarium Bonds $2,230,000.Sewerage Service Revenue Bonds' - ' $8,270,000

K. Total (Memorandum Only) Columns

The total columns are captioned "memorandum only" because they do notrepresent consolidated financial information and.are presented only tomake financial analysis easier. .Data in these columns do not presentfinancial position in accordance with the other comprehensive basis of

• . accounting disclosed in Note B. Interfund eliminations have not beenmade in the aggregation of this data..

20

SUPPLEMENTAL INFORMATION

BOARD OF LIQUIDATION, CITY DEBTDEBT ADMINISTRATION.

COMBINING SCHEDULE OF ASSETS, LIABILITIES, ANDDEBT SERVICE AND RESERVE FUNDS-MODIFIED CASH BASIS

DECEMBER 31, 2007

Cash (Due to othei; funds)Cash-Paying AgentCertificates of depositU.S. Treasury Bills-costTotal Assets

LIABILITES AND DEBT SERVICEAND RESERVE FUNDS

GeneralObligation

$

$

Bonds

(69,228)40,000

65,532,239803,484

66,306,495

DrainageCapital System

Improvement Bonds 6Limited Tax mill

$ 0 $0

6,788,7030

$ 6,788,703 $

8000080

DrainageSystem Bonds

9 mill

$ 23,9050

1,604,3510

$ 1,628,256

Water RevenueBonds

3 7,561

04,984,381

0$ 4,991,942

Interest payablePrincipal payablePrincipal payable-Paying AgentTax Credit Bond loan payable

Reserve fundsDebt service funds

Total Liabilities, and DebtService and Reserve Funds

$

$

24,30,

10,

66,

40,82,40,713,779,

650,

306,

714300000549069

863

495

$ 0 $

00

2,903,660

0

3,885,043

$ 6,788,703 $

800000

0

80

$ 5,

18,

1,604,

S 1,628,

755150000

351

256

S 2,5,

3,928,

1,056,

$ 4,991,

50600000

380

056

942

SewerageService

Revenue Bonds

Sewerage fiWater BoardMatured

Bonds

AudubonPark

CommissionBonds

Audubon. ParkCommissionAquariumBonds

DowntownDevelop-ment

DistrictTax Bonds

DefeasedBonds Total

5 6f283. 0

21,396,9040

$ 21,403,187

$

. $ '

37,142

000

37,142

$ 710

0307,088

0$ 307,798

?15,

$ 15,

0300

0 "•

0300

S

$

00

273,8690

273,869

$ 71,2935,000

00

$ 76,293

. $.

$

100,

101,

77,74660,300887,535803,434829,065

$ ' 810

. 5,00000 '

18,325,688

3,071,689

$ '12,14225,000

. 000

0

S 710

000

307,088

0

S 00

15,30000

0

5 • 0000

273,859

0

S 30,54340,7505,000

00

0

$ 93,260

176,200-60,300

27,617,20953, 614,094

20,268,002

$21,403 ,187- $ 37,142 $ 3 0 7 , 7 9 8 .$'15,300 $ 2 7 3 , 8 6 9 - $ 7 6 , 2 9 3 $ 101,829,065

21

BOARD. OF LIQUIDATION, CITY DEBTACCOUNT OF SEWERAGE & WATER BOARD OF NEW ORLEANSCOMBINING SCHEDULE OF ASSETS, LIABILITIES, AND

CUSTODIAL FUNDS-MODIFIED CASH BASISDECEMBER 31, 2007

CashCertificates of depositU.S. Treasury Bills-costTotal Assets

LIABILITES AND CUSTODIAL FUNDSTax Credit Bond Loan payableCustodial fund balance {deficit}Total Liabilities and Custodial Funds

Construction£ ExtensionFund 2 mill

$

$

$

$

4,

2,358,2,362,

2,362,2,362,

0090

052061

0061061

DrainageSystem Fund 3

mill

$13,5,

•.$ 19,

$19,

$ 19,

3,360,921,285,

285,285,

862000966828 '

0828828


mill

$10,8,

$ 19,

$19/

$ 19,

6,800,935,742,

742,742,

912000305217

0217217


mill

$ 30,439,182

$ '3 ,800 ,227

26,638,955$ 30,439,182

DrainageSystem Bond

Proceeds

$ 56,5875 , 0 0 0 , 0 0 06,759,341

$ 11,815,928

$ 011,815,928

$ 11,815,928

$ 108,1153 ,450 ,0006,784,810

$ 10,342,925

$ 6,555,0083,787,917

$ 10,342,925

SewerageService RevenueBond Proceeds

$•

$

$

$

21,27,49,

54,(5,49,

164,000,977,142,

304,162,142,

967000 •542509

742233)509

S

$

$

$

76,66,

143,

64,78,143,

349,180,601,130,

659,470,130,

338000'312650

977

673650

22

BOARD OF LIQUIDATION, CITY DEBTACCOUNT OF DOWNTOWN DEVELOPMENT DISTRICT OF NEW ORLEANS

COMBINING SCHEDULE OF ASSETS, LIABILITIES ANDCUSTODIAL FUNDS-MODIFIED CASH BASIS

DECEMBER 31, 2007

Special Tax FundODD BondProceeds

Cash •Certificates of depositU.S. Treasury Bills-cost

Total Assets

T.IABTLITES AND CUSTODIAL FUNDSTax Credit Bond Loan payableCustodial fund balance

Total Liabilites And Custodial Funds

906,2464,087,149

02,193,114

Total

$

s

8,071

1,935,0003, 050, 324

4, 993,395

5

$

3,5641, 060, 000

1, 129, 550

2,193,114

$ 11,6352,995,0004,179,874

$ 7,186,509

4, 993,395 2,193,114

.$ 906,2466,280-, 263

$ 7,186,509

23

Intentionally left blank

BOARD OF LIQUIDATION, CITY DEBTACCOUNT OF AUDUBON PARK COMMISSION OF NEW ORLEANS

COMBINING SCHEDULE OF ASSETS, LIABILITIES ANDCUSTODIAL' FUNDS-MODIFIED CASH BASIS

DECEMBER 31, 2007

Aquarium Tax

Fund

Cash $ 850Certificates of deposit . 0

O.S. Treasury Bills-cost 9/841

LIABILITES AMD CUSTODIAL FUNDS

Tax Credit Bond Loan payableCustodial fund balance (deficit)

Total Assets $ 10,691

Liabilites And. Custodial Fungs $ . 10,691

Aquarium Bond Special TaxProceeds Fund Total

$

$

1,231

1,163, 000718,081

1,882,312

$

S

9620

0

962

$

$

3 , 0 4 31,163,000

727, 922

1,893,965

0 $ 657,715 $ 7 ,129,281

1,882,312 ( 6 5 6 , 7 5 3 ) (5 ,235,316)1,882,312 $ 962 $ 1,893,965 '

24

BOARD OF LIQUIDATION, CITY DEBTACCOUNTS OF SPECIAL TAXING DISTRICTS OF NEW ORLEANS

COMBINING SCHEDULE OF ASSETS ANDCUSTODIAL FUMDS-MODIFIED CASH BASIS

DECEMBER 31, 2007

CashCertificates of depositU.S. Treasury Bills-cost

Total Assets

CUSTODIAL FUND BALAMCS

Audubon AreaSecurity

District

$ 1,2780 •

116,7595 118,037

$ 118,037

GardenDistrict

Security TaxDistrict

$ 214255,000284,339

$ 539,553

$ 539,553

HuntingtonPark

SubdivisionImprovementDistrict

$ 4,132. 0

9,796$ - -13,928

$ 13,928

Lake ForestEstates

Improvement.District

$ 3,03522,000

. 62,202$ 87,237

-$ 87,237

SpringlakeImprovementDistrict

S 5,3550

'20,571S 25,926

$ . 25,926

Lake CarmelSubdivisionImprovement

District

$ 5,53952,00060,722

$ 118,261

$ 118,261

UpperHurstvilleSecurityDistrict

S 2,51435, 000

134, 044$ 171,558

$ 171,558

Lake OaksSubdivisionImprovementDistrict

$ 3,642

057,133

$ 60,775

$ 60,775

Touro-EoulignySecurityDistrict

5 1,3030

97,190$ 98,493'

$ 98,493

Twinbrook

SecurityDistrict

? 2,6460 •

58,953S 61,599

$ 61,599

- Total

S 29,658

364, 000901,709

$ 1,295,367

S 1,295,367

25

BOARD OF LIQUIDATION, CITV DEBTCEBT ADMINISTRATION

COMBINING SCHEDULE OF CASH RECEIPTS, DISBURSEMENTS AND CHANGESIN LIABILITIES, AMD DEBT SERVICE AND RESERVE FUNDS-MODIFIED CASH BASIS


Ad valorem taxes-Current yearAd valorem taxes-Prior yearsBond proceeds <Dgbt service funds

Debt service fundstax credit bond loanCost of issuanceInterest on inveatmentsExcess reserve and debt service funds

Total receipts

DISBURSEMENT^}

Interest on bondsPrincipal on bondsPersonal servicesContractual servicestegal and office expensesFunds returned to city of Hew Orleans,

Sewerage 6. Hater Board, and AudubonPark Commission

Cost of issuance-bond issueCost of Bond insurance-bond issue

Total disbursementsExcess (Deficiency) of receipts over

disbursementsLiabilities, and Debt Service and

Reserve funds at:December 31, 2006December 31, 2007

General Obligation

Bonds

$ 52,143,352

6,711.538

75,1*6,655

0

00

4,414,8070

138,422,352

37,944,10014,905,474

328,532113,344

23,014

075,150,551

195,434

727,236

129,387,685

9,034,667

57,271,828

5 66,306,495

Capital

ImprovementLimited Tax

S 3,203,401

000

0000

3,203,401

676,7550000

0000

616,755

2,526,646

4,262,0575 6,788,703

DrainageSystem

Bonds 6mill

5 00

00

00000

00000

0000

0

0

eo$ 80

Drainage

System Bonds 9

mill

5 0

00

0

0. 0000

00000

0000

0

o .

1,628,256

S 1,625,256

Water Revenue

Bonds

S 0

0

0277,755

000

271,551549,306

0.0000

0271,551

00

271,551

277,755

4,714,187

S 4,991,942

Sewerage ServiceRevenue Bonds

S 000

2 , 0 6 2 , 9 0 7

02,372

, 01,055,2083 ,140 ,967

1,176,1180000

0

1,055,20915,000 '

0.

2,246,357

694,630

20,508,5575 21,403,191

Sewerage iHater Board

MaturedBonds

S 000Q

00000

00000

000 '0

0

0

37, 142S 37 ,142

AudubonPark

CommissionBonds

5 000

0

00

015,56015,960

000 ,00

290,35015,960

00

306,410

(290 ,450)

598 ,248S 307,798

Audubon p&rfcCommission

Aquar ium Bonds

5 00Q

0

D0

. C00

000

0 .0

0

000

0 '

0

15,300S 15,300

Dov:ntownDevelopmentDistrict Tax

Bonds

5 00

0

0

000

17,54217,542

0000Q -

367,92917,542

00

385,471

(.367,529)

641,798S _ - 2 7 3 , 8 6 9

Defeased Bonds

5 000

36,115 ,804

3 0 , B 9 S , 0 3 2 •000

• 67, 013, 836

IS, 043,83648, 970 ,000

000

00

00

57,013,836

0

76,293S 76,293

Total

5 55 ,346 ,7536,717,538

75,116,6553 8 , 4 7 6 , 4 6 6

30 ,896 ,0322 , 8 7 2

4 , 4 1 4 , 8 0 71,360,261

212,363,364

57,840,83963,875,474

328,532113,344

23,014

658,37976,510,813

210,434727,236

200 ,288 ,065

12,075,319

8 9 , 7 5 3 , 7 4 6S 101,829,065

26

ACCOUNT OF SEWERAGE &' WATER BOARD OF NEW ORLEANSCOMBINING SCHEDULE OF CASH RECEIPTS, DISBURSEMENTS AND

CHANGES IN CUSTODIAL FUNDS-MODIFIED CASH BASISYEAR ENDED DECEMBER 31, 2007

RECEIPTS

Ad valorem taxes-Current yearAd valorem taxes-Prior yearsRevenue sharing-State of.LouisianaInterest on investmentsReimbursement from EPA

Tax Credit Bond loan proceedsExcess reserve and debt service funds

Total receipts

DISBURSEMENTS

WarrantsDebt service

Total disbursements

Excess (Deficiency) of receiptsover disbursements

Liabilities and Custodial Fund Balance at:

December 31, 2006December 31, 2007

Construction& ExtensionFund 2

$

138

138

mill

0•120

0,392

000

,512


mill

$ 10,496,3351,192,396544,553

1,322,597

000

13,555,881


mill

$ 10,621,4931,203,550

01,231,715

000

13,056,758

120,4860

120,486

18,026

2,344,035

15,210,707

(1,654,826)

20,.940, 654

10,284,0880

10,284,088

2,772,670

16,96.9,547$ 2,362,061 $ 19,285,828 $ 19,742,217

Drainage System Drainage System Water RevenueFund 9 mill Bond Proceeds Bond Proceeds

Sewerage ServiceRevenue Bond

Proceeds Total

$ 15,911,3561,753,915

•01,324,912

02,195,876

021,192,059

12,627,4482,195,87614,823,324

$ " 000

685,806000

685,806

2,174,0020

• . .2,174,002

• $ o .00

637,6000

3,800,068156,813'

4,594,481

2,985,0123,800,0686,785,080

$ 000

3,088,32738,189

18,169,959'954,054

22,250,529

12,882,12918,165,-10731,047,236

$ 37,035,1844,149,981544,553

8,429,34938,189

24,165,9031,110,.867

75,474,026

56,283,87224,161,05180,444,923

(1,488,196).

13,304,124

(2,190,599)

12,533,524

(8,796,707)

57,939,216S 30,439,182 $" 11,815,928 49,142,509 $•143,130,650

27

BOARD OF LIQUIDATION, CITY DEBTACCOUNT OF DOWNTOWN DEVELOPMENT DISTRICT OF NEW ORLEANSCOMBINING SCHEDULE OF CASH RECEIPTS, DISBURSEMENTS AND

CHANGES IN CUSTODIAL FUNDS-MODIFIED CASH BASISYEAR ENDED DECEMBER 31, 2007

RECEIPTSAd valorem taxes-Current yearAd valorem taxes-Prior yearsDebt Service funds - returnedInterest on investmentsTax Credit Bond loan proceedsExcess reserve and debt service funds-

Total receipts

DISBURSEMENTSWarrantsDebt'service

Total disbursements

Excess (Deficiency) of receipts over disbursementsLiabilities and Custodial Fund Balance at:


Special TaxFund

$ 4,951,294618,680367,929283,601538,317

0

6,760,021

4,682,498

538, 3185,220,816

DDD BondProceeds

$ 000

195, 9430

17,542213,485

1,.825,7660

1,825,766

Total

$ 4,951,294618, 680367,929479,744.538,31717,542

•6,973,506-

6,508,264538,318

7,046,582

1,539,205

3 , 4 5 4 , 1 9 0S 4 , 9 9 3 , 3 9 5

(1,612,281)

3,805,395'2,193,114

(73 ,076)

7,259,585$ 7,186,509

28

BOARD OF LIQUIDATION, CITY DEBTACCOUNT OF AUDUBOW PARK COMMISSION OF NEW ORLEANS

COMBINING SCHEDULE OF CASH RECEIPTS, DISBURSEMENTS ANDCHANGES IN CUSTODIAL FUNDS-MODIFIED CASH BASIS

YEAR ENDED DECEMBER 31, 200"?

Aquarium Tax

Fund

RECEIPTS

Ad valorem taxes-Current year $ 6,760,517Ad valorem taxes-Prior years 923,053

Bond Proceeds 0Debt Service Funds-returned 0

Interest on investments 256Tax Credit Bond loan proceeds . 3,627,074Excess reserve and debt service funds 0

Total receipts 11,310,900

DISBURSEMENTS

Warrants . : ;7, 680,000Debt service ' 3> 627', 074

Total disbursements '11,307,074

Excess (Deficiency) of receipts over disbursements 3,826Liabilities and Custodial Fund Balance at:

December 31, 2006 . 6,865December 31, 2007 $ 10,691

Aquarium Bond Special TaxProceeds Fund Total

7 3 2 , 6 7 4 ? 7 ,493 ,191

395,

68,

463,,

0472

0

5000 •0

972

98,

290,

367,15,

1, 505,

562

0

450

373260960

279

1;

3,

13,

021,

395,

290,

69,

994,

15,

280,

615

472 '

450

129

334

960

151

0 1,147,450 8,827,450

0 . 367,260 '3,994,334-0 1,514,710 12,821,784

• 463,972' (9,431)' 458,367

1,418,340 10,393 ' 1,435,598$ 1,882,312 $ 962

29

BOARD OF LIQUIDATION, CITY DEBTACCOUNTS OF SPECIAL TAXING DISTRICTS OF NEW ORLEANS

COMBINING SCHEDULE OF CASH RECEIPTS, DISBURSEMENTS ANDCHANGES IN CUSTODIAL FUNDS-MODIFIED CASH BASIS


Garden

RECEIPTSAd valorem taxes-Current yearAd valorem taxes-Prior yearsFee-Current yearFee-Prior yearInterest on investments

Total receipts

DISBURSEMENTSWarrants

Total disbursements

Excess (Deficiency) of receipts over disbursementsCustodial Fund Balance at:


Audubon AreaSecurityDistrict

5 00

105,87524, 6967,097

137,668

129,000129,000

8;668

109,369$ 118,037

DistrictSecurity

TaxDistrict

S 361,9243,460

00 .

40,752606,136

695,000695,000

,(88>864)

628,4175 539,553

HuhtingtonPark

ImprovementDistrict

S 0' 0

17,7501,213560

19,323

8, 6008,600

10,923

3,005$ 13,928

Lake ForestEstates

ImprovementDistrict

$ 00

58,3752,6955,53366,603

35,00035,000

31,603

55,634$ 87,237

SpringlakeImprovementDistrict

$ - o .0

. 37,0152,9421,89041,847

55,00055,000

(13,153}

39,079$ 25,926

Lake Carmel

SubdivisionImprovementDistrict

$ 00

77,25011,7786,28695,314

75,00075,000

20,314

97,947$ 118,261

Upper

Hurstville1

Security. District

$ 00

149,816. 3,5598,223

161,598

70,000'70,000

91,598

79,960$ 171,558.

Lake Oaks• Subdivision

ImprovementDistrict

$ 00

80,6504,434,3,09888,182

55,00055,000

33,182

27,593$ 60,775

Touro-Bouligny

Security. District

$ 229,2170

0

04,374

233,591

135,098135,098

98,493

0$ 98,493

TwinbrookSecurity

District

$ '0' 0

231,2020

3,495234,697

173,098173,098

61,599".

0$ 61,599

Total

$ 791,141

3,460

757,93351,31781,308

1,685,159

1,430,7961,430,796

254,363

01/041,004

$: 1,295,367

30

FinalSerial

Date of Bonds Maturity

GENERAL OBLIGATION BONDS fNofrp C.I

General Obligation RefundingBonds, Series 1991 (Notes E. and F.)

General Obligation RefundingBonds, Series 1998

Public Improvement Bonds,Issue of 1999 (Note D.)

Public Improvement Bonds,Issue of 2001

Public Improvement Bonds,issue of 2002




Public Improvement Bonds,Issue of 2005A


Public Improvement Bonds,Issue of 2007A

LIMITED TAX BONDS fNote G.iSeries 2005

DRAINAGE SYSTEM SPECIAL TAX BONDS (Note H.I

Drainage System Bonds,Series 1998 (9 mill)Series 2002 (9 mill}

Sep.

Dec.

Nov.

Apr.

Apr.

Apr.

Oct.

July

May

July

Dec,

July

Dec.Oct.

1,

If

>

1,

I/

If

1,

13,

24,

6,

14,

6,

1,1,

1991

1998

1999

2001

2002

2002

2003

2004

2005

2005

2007

2005

1998.2002

Sep.

Dec.

Nov.

Dec.

Dec.

Sep.

Oct.

Dec.

Dec.

Dec.

Dec.

Mar.

Dec,Dec.

1,

If

1,

1,

1.

If.

1*

1,

if

if'

1,

i.

i/i.

2021

2026

2029

2030

2031

2021

2033

2033

2034

2029

2036

2021

20182022

See accompanying notes.

Average Annual Principal dueInterest Cost 2008

7.071% $ 7 , 9 4 3 , 9 2 9

4 . 9 4 8 % 2 , 970, 0 0 0

5 . 6 4 3 % 665, 000

5 . 2 2 5 % 495, 000

5 . 3 0 7 % 665,000

5.384% 0

5 , 0 2 1 % 895,000

5 . 0 9 6 % 610,000

4 . 3 4 7 % 315,000

5 . 1 8 0 % ' 0

5 . 0 8 6 % ' 0$ 14,558, 929

4 . 0 4 5 % $ 1,565,000

4 . 8 3 8 % $ 475 ,0004 . 4 5 7 % 650,000

$ 1,125,000

Interest due2008

5 17,501,071

. 5,127,198

•95,115

1, 134, 613

1,621,193

3, 018 ,769

1, 970,163

1,. 609, 288

7 1 4 , 7 0 0

5 , 4 4 4 , 9 5 0

• 3 ,673,2125 41 ,910,272

$ 1,330,035

$ . 157,330. 377,558

$ 5 3 4 , 8 8 8

Debt Servicedue 2008

$ 25, 445 , 000

8 ,097 ,198

' 760,115

1, 629, 613

2,286,193

3,018,769

2,865,163

. 2 ,219 ,288

, 1 ,029,700

• 5 , 4 4 4 , 9 5 0

. 3 ,673,212$ 5 6 , 4 6 9 , 2 0 1

$ 2 ,895,035

$ 632,3301, 027,558

$ 1,659,888

Arooun tOutstanding

(Note A. )

$ 62, 3 5 4 , 462 '

9 7 , 0 0 0 , 0 0 0

1 , 3 7 0 , 0 0 0

21, 755, 000

30, 6 4 5 , 0 0 0

.58, 415,000

39, 115,000

31, 8 7 0 , 0 0 0

15, 710 ,000 .

105, 2 8 0 , 0 0 0

75, 0 0 0 , 0 0 0$ 538, 514 ,462

$ 30, 0 4 5 , 0 0 0

$ 6, 650 ,00017, 185,000

$ 23, 835,000

See accompanying, notes.

SEWERAGE SERVICE REVENUE BONDS (Note 11Bond Series 1997Bond Series 1998Bond Series 2000Bond Series 2000BBond Series 2001Bond Series 2002Bond Series 2003Bond Series 2004

Date of Bonds

June 1, 1997Dec. 1, 1998May 1, 2000Nov. 1, 2000Dec. 1, 2001Dec. 1, 2002Dec. 3, 2003Dec. 16, 2004

Final SerialMaturity

June 1, 2017June 1, 2018June 1, 2020June 1, 2020June 1, 2021June 1, 2022June 1, 2023June. 1, 2024

BOND ANTICIPATION NOTES (Note J.ISewer Service Revenue Refunding 2006 July 26, 2006 July 15, 2009

WATER REVENUE BONDS (Note K.ISeries 1998Series 2002

Dec. 1, 1998

Oct. 1, 2002Dec. 1, 2018Dec. 1, 2022

AUDUBQN PARK COMMISSION BONDS .4 MILL (Mote L.Refunding & Improvement Bonds,Series 1997 Jan. 1, 1997 Dec. 1, 2016

AUDDBON PARK COMMISSION AQUARIUM BONDS 3.8 MILL (Note M.1Refunding Bonds, Series 2001ABond Series 2001BRefunding Bonds, Series 2003A

Nov. 1, 2001Nov. 1, 2001July 9, 2003

Oct. 1, 2017Oct. 1, 2021Oct. 1, 2013

DOWNTOWN DEVELOPMENT DISTRICT TAX BONDS 22.97 MILL (Note N.1

Limited Tax BondsSeries 2001 July 1, 2001 Dec. 1, 2026


Average Annual

Interest Cost

Principal due2008

Interest due2008

Debt Service

due 2008

AmountOutstanding(Note A.)

5.359%4.817%5.478%5.424%5.018%4.362%3.939%4.262%

00

1,095,00000

0225,000

0

469,085369,567

1,103,069396,484588,700

1,120,325179,371582,747

$ 1,320,000 $ 4,809,348

$ 17,685,00015,625,00020,680,00014,905,00024,435,00045,740,0004,715,00028,280,000

$ 172,065,000

5.020% 1,206,306 $ 24,030,000

4,817% $ 770,0004.567% 1,150,000

$ 1,920,000

252,034

1,413,063$ 1,665,097

S 10,770,00029,920,000

$ 40,690,000

5.422%

4.731%5.586%3.726%

2,415,000

$ o. $00

$ 0 $

0000

$

$

0000

$

$

13,405,0006,288,57212,270,00031,963,572

5.193% 6,125,000


32

BOARD OF LIQUIDATION, CITY DEBTSCHEDULE OF BONDED DEBT ADMINISTERED BY BOARD OF LIQUIDATION, CITY DEBT (CONTINUED)

DECEMBER 31, 2007

Date of Bonds

DEFEA3ED BONDS-DEBT SERVICE

GUARANTEED BY ESCROW AGREEMENTS (Note B.I

DRAINAGE SYSTEM SPECIAL TAX BONDS

Drainage System Bonds,

Series 1998 (9 mill)

Series 2002 (9 mill)

Dec, 1, 1998Oct. 1, .2002

July 19, 2006

July 19, 2006

SEWERAGE SERVICE REVENUE BONDS

Bond Series 1997Bond Series 1998

Bond Series 2000B

Bond Series 2001

Bond Series 2002Bond Series 2004

June 1, 1997Dec. 1, 1998Nov. 1, 2000

Dec. 1, :2001Dec. 1, 2002

Dec, 16, 2004

July 19, 2006

July 19, 2006

July 19, 2006

July 19, 2006

July 19, 2006

July 19, 2006

WATER REVENUE BONDSSeries 1998 Dec. 1, 1998

AUDUBOK PARK COMMISSION BONDS .4 MILL

Jan. 1, 1997 July 19, 2006

AUDUBQN PARK COMMISSION AQUARIUM BONDS 3.8 MILL

Refunding Bonds, Series 2001ABond Series 2001BRefunding Bonds, Series 2003A

Nov. 1, 2001

Nov. 1, 2001July 9, 2003

DOWWTOWM DEVELOPMENT DISTRICT TAX BONDS 22.97 MILL

Limited Tax BondsSeries 2001 July. 1, 2001 July 19, 2006

GENERAL OBLIGATION REFUNDING

Public Improvement Bonds,Issue of 1999 (Note O.) Dec. 1, 1997 July 6, 2005


Date of Callsor FinalMaturity

Principal due2008

Dec. 1,Dec; 1,

June 1,June 1,June 1,June 1 ,June 1,June 1 ,

20082008

200820082008200820082008

5

?

$ 1,490,1,200,

850,1,360,2,135,1,235,

$ 8,270,

000

000000000000000

000000

$ 157,377,

$ ' 534,

$ 506,

395,417,

653,1,163,

619,$ 3,755,

330558'888

335067

734670025797628 .

?

5 ,

$ 1,1,1,2,3,1,

$ 12,

157,377,534,

996,595,267,

013,298,854,025,

330558888

335067734670025797628

5

$

5

5

1,1,

1,2,1,8,

000

490,000200, 000650,000360,000135, 000-235,000270,000

Dec. 1, 2008

Dec. 1, 2008 235,000

Oct. 1, 2008Oct. 1, 2008Oc.t. 1, 2008

$ 15,00060,000 '

2,155,0005 2 ,230 ,000

$ 691,9713 2 , 5 4 0

677,300$ 1,401,811 .

$ 706,971. ' . 92 ,540

2 ,832 ,300$ 3,631,811

$ 15, 000 '60,000

2,155,000$ 2 ,230 ,000

Dec. 1, 2008 205,000

Nov. 1, 2009 1,549,947 1,549,947 $ 27,005,000

33

BOARD OF LIQUIDATION, CITY DEBTNOTES TO SCHEDULE OF BONDED DEBT ADMINISTERED

BY BOARD OF LIQUIDATION, CITY DEBTDECEMBER 31, 2007

Note A. Amount Outstanding - Amount excludes balances recorded as liabilites in theCombining Statement of Asset's, Liabilities, and Custodial, Debt Service andReserve Funds-Modified Cash Basis

Note B. Defeased Bonds - Defeased bonds are not obligations of the City of NewOrleans, the Sewerage & Water Board, the Downtown Development District orthe Audubon Park Commission.

Note C. General Obligation Bonds - Legal Debt Limit:' $992,048,631; Debt ServiceCoverage: Unlimited Ad Valorem Tax Levy; Reserve Fund: Sufficient tocover 1/2 of.the high year's Principal and Interest due.

Refunded General Obligation Bonds (2005) - A portion of these IssuesRefunded in 2005. Debt Service guaranteed by Escrow.Agreement.

Note E. Refunded General Obligation Bonds (2002) - A portion of these IssuesRefunded in 2002. Debt Service guaranteed by Escrow Agreement.

Note F. Refunded General Obligation Bonds. (1998) - A portion of these IssuesRefunded in 1998. Debt Service guaranteed by Escrow Agreement.

Note G. -Limited Tax Bonds - Debt Service Coverage:Service due

2007 Tax Yield 110% of Debt

Note H, Drainage System Bonds - Legal Debt Limit: 9 mill $68,000/000; Debt ServiceCoverage: 2007 Tax Yield 725% of Debt Service Due- 9 mill

Note I. Sewerage Service Revenue Bonds - Bond Debt' Service Coverage: Ratessufficient to produce -revenues over and above the amount required foroperation and maintenance of the system which shall be not less than 130%of the maximum of Debt Service due in any calendar year on all outstanding,bonds. Bond Reserve Fund: High year's principal and interest due.

Note J. Bond Anticipation Notes - Bond Debt Service Coverage: Interest on BANsdeposited in equal monthly installments from the 'Sewerage Service RevenueAccount at the Sewerage Service Revenue Account at the Sewerage & WaterBoard of New Orleans to the Board of Liquidation, City Debt. Reserve Fund:None

Note K. Water Revenue Bonds - Debt Service Coverage: Rates sufficient to producerevenues over and above the amount required for operation and maintenanceof the system which shall be not less than 130% of the maximum of DebtService due in any calendar year on all outstanding bonds. Reserve Fund:High year's principal and interest due.

Note L. Audubon Park Commission .4 Mill Bonds - Debt Service Coverage:Yield 197% of Debt Service due.

2007 Tax

34

BOARD OF LIQUIDATION., CITY DEBTNOTES TO SCHEDULE OF BONDED DEBT ADMINISTEREDBY BOARD OF LIQUIDATION, CITY DEBT (CONTINUED)

DECEMBER 31, 2007

Note M. Audubon Park Commission 3.8 Mill Bonds - .Debt Service Coverage: 2007 TaxYield 186% of Debt Service due. Reserve Fund; Sufficient to cover 1/2 ofthe high year's Principal and Interest due.

Note N. Downtown Development District. Bonds - Debt Service Coverage: 2007 TaxYield 925% of Debt Service due. Reserve Fund: Sufficient to cover 1/2 ofthe high year's Principal and Interest due.

Note 0. Refunded Defeased Public Improvement Bond (2005) - Only a portion-of theissue was refunded in 2005.

35

BOARD OF LIQUIDATION, CITY DEBTSCHEDULE OF BOND SALES

FOR THE YEAR ENDED DECEMBER 31, 2007

Public Improvement Bonds, Issue of 2007ASold: October 30, 2007 Delivered: December 14, 2007Bonds Dated: December 1, 2007 and due December 1, 2009 through December 1, 2036

Average life of issue: 18.363556 yearsNet Interest Cost: ' 5.104347%True Interest Cost: 5.086344%

Sold to: Merrill-Lynch & Co. .

Sources:

Principal sum $ 75,000,000Premium $ 146,655Total S 75,146,655

Total proceeds of $75,146,655 were delivered to the Treasury Department' of the

City of New Orleans on-December 14, 2007.

36

Intentionally left blank

BOARD OF LIQUIDATION, CITY DEBTSCHEDULE OF DEDICATED AD VALOREM TAX MILLAGE AVAILABLE FOR SERVICING OF BONDED DEBT

DECEMBER 31, 2007

1987

DEBT SERVICE 30.70

CAPITAL IMPROVEMENT LIMITED TAX (Note B.I N/A

SEWERAGE & WATER BOARD:

Construction & Extension of Sewerage,Water & Drainage System (Tax expired 12/31/91) 3.94

Operation, Maintenance and Construction

& Extension of Drainage System 5.92

Operation, Maintenance and Construction of Drainage System 6.00

Operation, Maintenance and Construction of Drainage System 9.00

PARK COMMISSION:

Audubon Park Zoo .40

Audubon Park Aquarium (Note C.) • N/A

DOWNTOWN DEVELOPMENT DISTRICT 12.50


Millage (Note A.)1993 2003 .

1990 & through through

1988 1989 laSl 1222 -2002 2005 2006 2JJ07

34.20 37.90 35.30' 26.90 26.90 28.40 38.20 31.70

N/A N/A N/A ' N/A 2.50 2 . 5 0 , 2.50 2 . 50

2008.

23.80

1.82

4 . 0 0 4 . 0 0 4 .00 N/A N/A N/A N/A N/A N/A

6.01

6 . 0 9

9.13

6.01

6 .09

9.13

6.01

6.09

9.13

6 . 4 0 '

6.48

9,71

6 . 4 0

6 .48

9.71

6 . 4 0

6 .48

9.71

6 . 4 0

6 . 4 8

9.71

6 . 4 0

6 . 4 8

9.71

4 . 6 6

4.71

' 7 . 0 6

;. 41 .41 .41

3.86 3.86 3.86

12.50 13.24 13.24

. 4 4 . 4 4 . 4 4 . 4 4 . 4 4 0 .32

4.11 4.11 4.11 • 4.11 4.11 ' 2 . 9 9

15.68 15.90 15.90 15.90 15.90 14.76

37

BOARD OF LIQUIDATION, CITY DEBTNOTES TO SCHEDULE OF DEDICATED AD VALOREM TAX MILLAGE

AVAILABLE FOR SERVICING OF BONDED DEBTDECEMBER 31, 2007

Note A. Millage is approved in December of each year by the City Council of NewOrleans for the new tax year.

Note B, The 2.5 mills for Capital Improvement Limited Tax is in effect for the firsttime in 1996.

Note C, The 3.8. mills for Audubon Park Aquarium was in effect for the first time in,'1987.

38

BOARD OF LIQUIDATION, CITY DEBTSCHEDULE OF SEWERAGE & WATER BOARD MATURED BONDS-DEBT ADMINISTRATION

DECEMBER 31, 2007

Sewerage, Water£ Drainage Bonds

2 mill *

Drainage SystemBonds 3 mill

6.40 Total

ASSETS •Cash .

Total Assets

LIABILITIESInterest PayablePrincipal Payable

Total Liabilities

5?

5

$

30,30,

10,20,30,

2 4 3243 .

2 4 3

000243

6,899-6,399

1,8995, 000

37,142

12,14225,000

6,899 37,142

Tax expired December 31,. 1991.

39

BOARD OF LIQUIDATION/ CITY DEBTSCHEDULE OF DEFEASED BONDS-DEBT ADMINISTRATIONAT AND FOR THE YEAR ENDED DECEMBER 31, 2007

RECEIPTS

Debt service funds-Escrow AccountsInterestPrincipal

Total Receipts

DISBURSEMENTSInterest on refunded bondsPrincipal on refunded bonds

Total disbursements

Receipts over disbursementsFund Balances at:


CashTotal Assets

LIABILITIES

Interest payablePrincipal payablePrincipal payable-Paying Agent

Total liabilities

$

$

$$

$

?

GeneralObligation

Bonds

3,225,804 -32,890,000

36,115,804

3,225,80432,890,000

36,115,804

0

43,67843, 678

43, 67843,678

15,46323,2155,000

43,678

DrainageSystem Fund

$ 1,125,8761,070,000

2,195,876

1,125, 876 .1,070,000

2,195,876

0

0$ 0

$ 0$ 0

$ 0. 0

0

? . o

SewerageService

Revenue Bonds

9,035,1089,130,000

18,165,108

14,320.14,320

14,32014,320

1,78512,535

. '' 0

Water P-evenueBonds

Audubon ParkCommission

Aquarium Bonds

AudubonPark

CommissionBonds

DowntownDevelopment

District

Lirnited TaxBonds 2.5

Mills Total

1 , 9 8 0 , O G 81 , 8 2 0 , 0 0 0

3 , 8 0 0 , 0 6 8

3 1 , 4 8 7 , 0 7 42, 1 -30 ,000

3 , 6 2 7 , 0 7 4

1 4 7 , 2 6 02 2 0 , 0 0 0

3 6 7 , 2 6 0

343,316195,000

538,316

699,330, 5 0 5 , 0 0 0

$ 18 ,043 ,6354 8 , 5 7 0 , 0 0 0

67,013, 636

1, £ 8 0 , 0 6 81, 820,000

3, 800, 068

16, 07616, 076

1 , 4 8 7 , 0 7 42 ,140 ,000

3 , 6 2 7 , 0 7 4

2 ,2192,219

1 4 7 , 2 6 0220 ,000

367,260 f

343,316195,000

699,3301, 505, 000

~2, 204,330"

0

0

18,043, 83648 ,570 , 000

67, 013, 836

76 ,29376 ,293

16, 075

16,076

2,2192,219

2,21900_

2,219

76,2937 6 , 2 9 3

30,5434 0 , 7 5 0

5, QOO

76,293

40

BOARD OF LIQUIDATION, CITY DEBTSCHEDULE OF ITEMIZED DISBURSEMENTS-INTEREST AMD PRINCIPAL PAID


GENERAL OBLIGATION BONDS

Public Improvement Bonds, Issue of 19S7APublic Improvement Bonds, Issue of 1998ftPublic Improvement Bonds, Issue of 1999Public Improvement Bonds, Issue of 2001Public Improvement Bonds/ Issue of 2002Public Improvement Bonds, Issue of 2003Public Improvement Bonds, Issue of 2004Public Improvement Bonds, Issue of 2Q05AGeneral Obligation Refunding Bonds, Series 1991General Obligation Refunding Bonds, Series'1998General Obligation Refunding Bonds, Series 2002General Obligation Refunding Bonds, Series 2005

Total General Obligation Bonds

SPECIAL TAX BOMD5

Limited Tax Bonds, Series 2005

REVENUE BOHDS

Sewerage Service Revenue Refunding Bond Anticipation Notes, 2006

SPECIAL TAX & REVENUE DSFERSED BONDS

limited Tax Bonds, Series 2005

Drainage System Bonds, Series 1998Drainage System Bonds, Series 2002Total Drainage

sewerageSewerage

, SewerageSewerageSewerageSewerageSewerageSewerage

ServiceServiceServiceServiceServiceServiceServiceService

Total Sewerage

System 9 mill bonds

RevenueRevenueRevenueRevenueRevenueRevenueRevenueRevenueService

Bonds ,Bonds ,Bonds ,Bonds ,Bonds,Bonds fBonds ,Bonds ,Revenue

SeriesSeriesSeriesSeriesSeriesSeriesSeriesSeriesBonds

1997199820002000B2001200220032004Defessed

Debt ServiceFund

53,7000

139,7551,167,5131,659,2932, 016,1001,632,488. 732,70016,869,5265,209,3083/018,767'3,444,95037,944,100

'1,176,148

Interest Paid Principal Paid

Tax Credit BondLoan

5 00000000000

' 00

0

0

699,330

333,560792,316

1, 125,876

1,056,889813,969'

1,165,450855,468

1,317,293 •2 ,366,550

184 ,0461, 275 ,443

$ 9,035,108

Debt Service TaxTotal Interest

5 53,700 $0

139,7551,167, 5131 ,659 ,2932,016,1001, 632, 488

732, 70016,869, 525

5 , 2 0 9 , 3083,018,7675, 4 4 4 , 950

37 ,944 ,100

676,755

1,176,148

699,330

333,560792,316

1,125, 876

1, 056, 889813, 969

1,165, .450855 ,468

1,317,2932,366 ,550' 184 ,046 .1 , 2 7 5 , 4 4 3

$ 9 ,035,108 $

Fund

895 ,000 $0

620, 000470, 000635,0008-75, 000580, .0003 0 0 , 0 0 0

8,575, 4741,955,000

00

14,905, 474

0

0

. o

0o .0

000000o.

-o • $

Credit BondLoan

000000000000

. -

0

0

1,505,000

450 ,000620,000

1,070,000

1,415,0001,135,0001,. 035, 000

800 ,0001,305,0002 , 0 2 5 , 0 0 0

220,0001,195,000.9,130,000 .

Total "Principal

S 395 ,0000

620, 000470 , 000635,000875,000530, 000300 ,000

8 , 5 7 5 , 4 7 41, 955, .000

00

14, 9 0 5 , 4 7 4

0

0

1,505,000

450 ,000620,000

1 , 0 7 0 , 0 0 0

• .1, 415,000 '1, 135,0001, 035,000

8 0 0 , 0 0 01 ,305 ,0002, 025,000

220 ,0001, 195,000 •

$ 9,130,000

Total Interestand Principal

$ 9 4 8 , 7 0 00

759,7551,637,5132 , 2 9 4 , 2 9 32,891,1002,212 ,4881,032,700

25 , 4 4 5 , 0 0 07,164,3083,018, 7675 , 4 4 4 , 9 5 0

52,849, .574

€76,755

1,176,148

2/204 ,330

783,5601,412,3162,195 ,876

2 ,471 ,8891,948,9692 , 2 0 0 , 4 5 01 ,655 ,4682, 6 2 2 , 2 9 34,391,550

4 0 4 / 0 4 62, 470 , 443

$ 18,165,108

41

BOARD OF LIQUIDATION, CITY DEBTSCHEDULE OF ITEMIZED DISBURSEMENTS-INTEREST AND PRINCIPAL PAID (CONTINUED)


Audubon Park Commission Improvement Bonds, Series 1997

Downtown Development District Special Tax Bonds, Series 2001

Total Special Tax fi Revenue Bonds Defeased

Debt ServiceFund

SPECIAL TAX 6 REVEMUE DEFEASED BONDS I CONTINUED)

Water Revenue Bonds, Series 199B $ 0Water Revenue Bonds, Series 2002 0_Total Water Revenue Bonds 0

Audubon Park Commission Aquarium Bonds, Series 2001A 0Audubon Park Commission Aquarium Bonds, Series 2001B 0Auduboh Park Commission Aquarium Bonds, Series 2003A 0_Total Audubon Park Commission Aquarium Bonds 0

GENERAL OBLIGATION DEFEASED BONDS .Public Improvement Bonds, Issue of 1998A . . 1,675,857Public Improvement.Bonds/ Issue of 1999 I,549,947Total General Obligation Defeased Bonds 3,225,804Total Defeased Bonds 3,225,804

Total Itemized Disbursements-Interest,Principal and Premium Paid . $ 43,022,807

Interest Paid Principal Paid

Tax Credit BondLoan

• $ 534,155

1,.445, 913

1, 980,068

147,260

692,50434,670

759, 900

1, 487, 074

• 343,316

14, 819, 032

000

14,818,032

$ '.14,818,032

Debt Service Tax Credit BondTotal Interest

$ 534,155

1,445,913

1,980,068

1'47, 260

692,504

34,670

759,9̂ 001,487,074

343,316

14,818,032

1,675, 857

1,549,947

3,225,804'

18,043,836

S 57,840,839

Fund

$ 0 S00

0

0000

0

32, 890, 0000

32f 890,000

32,890', 000

$ 47,795,474 $

Loan

725,000

1,095,000 •

1,820,000

220,000

15,000

60,000

2,065,000

2,140, 000

195,000

16,080,000

0 '00

16,080,000

16,080, 000

Total Principal

$ 725,000

1,095, 000

1,820, 000

220,000

. 15,000

60, 0002,065,000 '

. 2,140,000

195,000

16,080,000 '

32,, 890,000

032,890, 000

48,970,000

$ 63,875,474

Total Interestand Principal

$ 1,259,155

2,540,913

3,800,068

367,260

707,50494,670

2,824,900

• 3,627,074

538,316

30,898,032

34,565,857 .

1,549,947

36,115,804

. 67,013,836

5 121,716,313

42

SPILSBURY, HAMILTON, LEGENDRE & PACIERA, LLCCERTIFIED PUBLIC ACCOUNTANTS

KIRTH M. PACIERA. C.P.A. 3209 R'DGELAKE DR.VE, SUITE 200

RENE G. GAUTREAU, C.P.A. METAIRIE, LA 70002

TIMOTHY L. PRIEST. C.P.A. (5Q4) 486-5573 SIDNEYT. SPILSBURY, C.P.A.

MEMBERSOF FAX (504) 486-6091 KEITH T. HAMILTON. C.P.A.AMERICAN INSTITUTE OF ., (1932-2003)

CERTIFIED PUBLIC ACCOUNTANTS . WWW.ShipCpa.COm LEROY P. LEGENDRE, C.P.A.

SOCIETY OF LOUISIANA (Retired)CERTIFIED PUBLIC ACCOUNTANTS

INDEPENDENT AUDITOR'S REPORT

REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING AND' ON COMPLIANCE AND OTHER MATTERS BASEDON AN AUDIT OF FINANCIAL STATEMENTS 'PERFORMED INACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Mr. J. Thomas Lewis, President, and MembersBoard of Liquidation, City DebtNew Orleans, Louisiana

We have audited the financial statements of the Board of Liquidation,City Debt- as of and for the year ended December 31, 2007, and haveissued our report thereon dated May 12, 20.08. We conducted our auditin accordance with auditing standards generally accepted in the UnitedStates, of America and the standards applicable, to' financial auditscontained in Government Auditing Standards, issued by the-ComptrollerGeneral of the United States. .

Internal Control Over Financial Reporting

In planning' and performing our audit, we considered the Board of.Liquidation, City Debt's internal control over financial reporting as.a basis for designing our auditing procedures for the purpose ofexpressing our opinion on the financial statements, but not for thepurpose of expressing an opinion on the effectiveness of the Entity'sinternal control over financial reporting. Accordingly, we do notexpress an opinion on the effectiveness of the Entity's internalcontrol over financial reporting.

A control deficiency exists when the design or operation of a controldoes not allow management or employees, in the normal course ofperforming their assigned functions, to prevent or detect misstatementson a timely basis. A significant deficiency is a control deficiency,or combination of control deficiencies, that adversely affects theEntity's ability to initiate, authorize, record, process, or reportfinancial data reliably in accordance with generally acceptedaccounting principles such that there is more than a remote likelihoodthat a misstatement of the Entity'.s financial statements that is morethan inconsequential will not be prevented or detected by the Entity'sinternal control.

A material weakness is a significant deficiency, or combination ofsignificant deficiencies, that results in more than a remote likelihoodthat a material misstatement of the financial statements will not beprevented or detected by the Entity's internal control.

43

Mr. J. Thomas Lewis, President, and MembersBoard of Liquidation, City Debt

Our consideration of internal control over financial reporting was forthe limited purpose described in the first paragraph of this sectionand would not necessarily identify all deficiencies in internal controlthat, might be significant deficiencies or'material weaknesses. We didnot identify any deficiencies in internal control over financialreporting that we consider to be material weaknesses, as defined above.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Board ofLiquidation, City Debt's financial statements are free of materialmisstatement, we performed tests of its compliance with certainprovisions of laws, regulations, contracts and grant agreements,noncompliance with which could have a direct and material effect on thedetermination of financial"statement amounts. However, providing anopinion on compliance with those provisions, was not an objective of.ouraudit, and accordingly, we do not.express such an opinion. The resultsof our tests disclosed no instances of noncompliance or other .mattersthat are required to be reported under Government Auditing Standards.

This report is intended solely for the information and use ofmanagement, the members of the Board,, the City of New Orleans, and theLouisiana Legislative Auditor,, and is not intended to be and should notbe used by anyone other than these specified parties.

May 12,. 2008

SPILSBURY, HAMILTON, LEGENDRE & PACIERA, LLCCERTIFIED PUBLIC ACCOUNTANTS .

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