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2023-017 Debt Summary Report February 24,2023 Report No. 2023-017 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Debt Summary Report of City's Outstanding Debt BACKGROUND: Attached is the Debt Summary Report with principal and interest outstanding as of September 30, 2022. This report is prepared on an annual basis to provide residents and the public with a comprehensive and easy to understand summary of the City's debt profile. Additionally, this report includes required information in accordance with Texas Local Government Code 140.008 (House Bill 1378). The report provides a high-level introduction to the types and uses of debt issued by the City as well as the most recent bond ratings. Staff has differentiated between tax-supported and revenue- supported debt to give the public a better understanding of which debt is paid for by property taxes versus rate revenues. Furthermore, the report details the principal and interest for each major service area of the City and provides two visual representations by dollar amount and percentages. This Debt Summary Report is provided annually to City Council for feedback. CONCLUSION: If no feedback is received within a week, staff will post the report on the City's website for the public on Tuesday, March 7, 2023. The report is intended to be updated annually in conjunction with the City's fiscal year end. ATTACHMENT(S): Debt Summary Report as of September 30, 2022 STAFF CONTACT: Randee Klingele, Treasury Manager (940) 349-8206 Randee.klingele&cityofdenton.com City of Denton Debt Summary Report Fiscal Year Ending September 30, 2022 Contact: City of Denton Finance Department Attn: Nicholas Vincent—Interim Director of Finance 215 E. McKinney St. Denton, Texas 76201 Email: Nick.Vincent@cityofdenton.com Phone: 940-349-8063 Fax: 940-349-7206 Website: www.cityofdenton.com Published: February 24, 2023 Disclaimer: Data provided in this report is as of the date of publication, constitutes existing long- term debt obligations only, and has been prepared pursuant to Texas Local Government Code 140.008 (House Bill 1378). This report does not include forward looking statements nor does it include debt that may be incurred in the future. Interested parties should refer to the City's audited financial statements and other disclosure documents when investing. 1 TABLE OF CONTENTS Introduction.......................................................................................................3 CITYDEBT SECTION Schedule—Total Annual Debt Service by Type of Debt....................................................6 Bar&Pie Charts—Total Annual Debt Service by Type of Debt...........................................7 Schedule—Tax Supported Debt Service..................................................................... 8 Bar&Pie Charts—Tax Supported Debt Service............................................................9 Schedule—Revenue Supported Debt Service................................................................10 Bar&Pie Charts—Revenue Supported Debt Service...................................................... 11 Schedule—General Government Debt Service...............................................................12 Bar&Pie Charts—General Government Debt Service.....................................................13 Schedule—Electric Debt Service..............................................................................14 Bar&Pie Charts—Electric Debt Service..................................................................... 15 Schedule—Water Debt Service................................................................................ 16 Bar&Pie Charts—Water Debt Service.......................................................................17 Schedule—Wastewater Debt Service......................................................................... 18 Bar&Pie Charts—Wastewater Debt Service................................................................19 Schedule—Solid Waste Debt Service.........................................................................20 Bar&Pie Charts—Solid Waste Debt Service................................................................21 HOUSE BILL 1378 SECTION Summary of Debt Obligations...................................................................................23 Individual Debt Obligations.....................................................................................24 Glossaryof Terms................................................................................................34 2 INTRODUCTION This report is divided into two sections. The first section(City Debt)presents the City's outstanding debt by the manner in which the City intends to pay for such debt (tax-supported versus revenue- supported). Additionally, this section provides a breakdown of the City's outstanding debt by purpose (General Government, Electric, Water, Wastewater, Solid Waste and Airport). The second section(House Bill 1378) is intended to comply with reporting requirements pursuant to Texas Local Government Code 140.008. The City of Denton utilizes long-term debt to finance non-operating expenses, which may include equipment, facilities, and the acquisition of land. Unlike the Federal Government,the City generally issues debt for the purchase or construction of capital assets and infrastructure improvements and cannot issue debt to fund operating expenses or deficit spending. All debt issued by the City must be approved by the Texas Attorney General's Office prior to the final sale of the debt. Additional information on the City's outstanding debt including statistical comparisons and ratios can be found in the City's Annual Financial Report, which is located on the City's website under the Finance Department. (www.cityofdenton.com) The City issues two types of long-term debt: General Obligation Debt and Revenue Bond Debt. The City also differentiates between tax-supported and revenue-supported debt to provide the public with a clear understanding of which debt will be paid by property taxes versus rate revenues. The following table shows the latest bond ratings for each type of debt for which ratings are given: Mood 's' Standard& Poor's Fitch General Obligation Debt Not Rated AA+z AA+4 Revenue Bond Debt Not Rated A+3 A 'Moody's does not currently rate any of the City's outstanding debt. ZS&P GO/CO,May 2022 3S&P Utility System Revenue Bonds.October 2022. 417itch GO/CO,May 2022. 5Fitch Utility System Revenue Bonds,Series 2017&2021. August 2022. GENERAL OBLIGATION DEBT. The largest category of debt is General Obligation Debt. It consists of two categories of bonds: General Obligation Bonds (GOs) and Certificates of Obligation(COs). GOs are generally voter approved and backed by the full faith and credit of the City (property tax pledge) and must be approved at an election. Voter approval may be granted during one of two general election dates each year. GOs which are issued to refund outstanding debt do not require voter approval. Under the City's debt policy, GOs strive to have a final maturity of twenty (20) years or less. COs do not require voter approval and generally have a dual pledge of a specific City revenue source as well and the full faith and credit of the City. Some examples of pledged City revenues are electric, water, wastewater, and drainage revenues. Under the City's debt policy, COs will strive to have a final maturity of thirty (30) years or less. Historically, COs have mostly been issued with twenty (20) year final maturities for general government purposes. In 2010, the City began issuing COs not only for general government purposes which are repaid by property taxes,but also for utility related projects of the City. The COs issued for utility purposes are repaid from the specific utility fund for which the debt was issued. COs have a lower interest rate than revenue bonds, due to the pledge of full faith and credit of the City. A portion of the interest savings to the City's utilities 3 through issuing COs (instead of revenue bonds) is being paid to the general government and placed in the Street Improvement Fund. REVENUE BOND DEBT: The second category of debt is Revenue Bond Debt. This debt is secured by only a pledge of the operating revenues of the City's Electric, Water and Wastewater Funds (collectively known as the "Utility System") and not the full faith and credit of the City. Under the City's debt policy, revenue bonds will strive to have a final maturity of thirty (30) years or less. Historically, most revenue bonds have been issued with a twenty (20) year final maturity. As of September 30, 2022, the City has the Utility System Revenue Bonds, Series 2017 and 2021's outstanding. OUTSTANDING DEBT: The City's total outstanding principal and interest as of September 30, 2022, is shown in Table 1 on page 6 of this report. 4 CITY DEBT SECTION 5 Table 1—Total Outstanding Debt(in millions)as of September 30,2022 Principal Interest Total GOs $ 336 $ 91 $ 427 COs $ 625 $ 270 $ 895 Revenue Bonds $ 333 $ 148 $ 481 Total $ 1,294 $ 508 $ 1,802 City of Denton Total Annual Debt Service(Principal&Interest)-All Debt Fscal Year Ending September 30,2022 FYEnd General Obligation Bonds(GOs) Certificates of Obligation(COs) Revenue 9-30 Tax Supported Revenue Supported Tax Supported Revenue Supported Bonds Total 2023 $ 22,426,455 $ 23,898,764 $ 14,010,690 $ 36,234,346 $ 25,295,259 $ 121,865,514 2024 21,883,462 21,566,619 13,178,750 35,820,875 25,300,313 117,750,019 2025 20,992,455 17,151,254 12,056,075 37,572,700 25,298,018 113,070,502 2026 20,354,450 10,165,850 11,265,875 37,396,375 25,295,282 104,477,833 2027 19,770,472 9,753,125 10,346,188 37,153,603 25,298,300 102,321,688 2028 18,306,025 10,398,850 8,969,519 34,674,206 25,300,530 97,649,130 2029 17,137,353 9,244,325 8,333,575 34,556,353 25,300,299 94,571,906 2030 17,139,625 9,286,575 8,185,362 34,615,963 25,298,164 94,525,689 2031 16,815,872 3,838,750 8,182,881 34,653,388 25,298,194 88,789,084 2032 16,615,956 - 8,064,225 37,215,400 25,299,853 87,195,434 2033 16,416,584 7,733,803 34,650,406 25,295,276 84,096,069 2034 16,127,197 7,138,850 31,434,975 25,301,145 80,002,167 2035 15,860,131 6,635,122 30,022,138 25,296,215 77,813,606 2036 14,282,209 6,405,737 29,123,713 25,299,258 75,110,918 2037 13,201,453 6,164,637 27,962,550 25,297,732 72,626,373 2038 12,066,116 5,583,175 27,933,650 7,223,309 52,806,250 2039 10,689,663 3,443,541 27,945,144 7,224,204 49,302,551 2040 9,447,744 3,181,778 27,132,681 7,225,700 46,987,903 2041 7,839,913 1,797,238 26,553,813 7,222,724 43,413,686 2042 4,258,500 474,300 24,303,622 7,225,125 36,261,547 2043 - - 19,150,300 7,223,201 26,373,501 2044 19,144,316 7,221,587 26,365,903 2045 15,780,903 7,224,314 23,005,217 2046 11,908,497 7,221,224 19,129,721 2047 8,911,097 7,222,160 16,133,257 2048 5,371,084 7,221,888 12,592,972 2049 5,369,781 7,225,170 12,594,951 2050 4,988,369 7,221,849 12,210,218 2051 3,829,531 7,221,769 11,051,300 2052 - - - 1,976,119 - 1,976,119 $ 311,631,636 $ 115,304,112 $ 151,151,321 $ 743,385,897 $ 480,598,061 $ 1,802,071,027 6 Total Annual Debt Service ($) $140 $120 $100 $80 e $60 $40 $20 $- M � h � — — a O ;-- N M -.I- h � r — a O N M V V O N N N N N N N N M M M M M M — — M V O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N M GO-Tax Supported M G0-Revenue Supported NCO-Tax Supported M CO-Revenue Supported o Revenue Bonds Total Annual Debt Service(%) ■ 17 29% ■26.67% ■6.40% ■GO-Tax Suppoted ■CO-Revenue SnppoAed ■8.39% ■CO-Tax Supported ■CO-RSV CUW Supponwd ■Revuuta Rnnd\ ■11.25% 7 City of Denton Total Annual Debt Service(Principal&Interest)-Tax Supported Debt Fiscal Year Ending September 30, 2022 FY End General Obligation Bonds Certificates of Obligation 9-30 (GOs) (COS) Total 2023 $ 22,426,455 $ 14,010,690 $ 36,437,145 2024 21,883,462 13,178,750 35,062,212 2025 20,992,455 12,056,075 33,048,530 2026 20,354,450 11,265,875 31,620,325 2027 19,770,472 10,346,188 30,116,659 2028 18,306,025 8,969,519 27,275,544 2029 17,137,353 8,333,575 25,470,928 2030 17,139,625 8,185,362 25,324,988 2031 16,815,872 8,182,881 24,998,753 2032 16,615,956 8,064,225 24,680,181 2033 16,416,584 7,733,803 24,150,387 2034 16,127,197 7,13 8,850 23,266,047 2035 15,860,131 6,635,122 22,495,253 2036 14,282,209 6,405,737 20,687,947 2037 13,201,453 6,164,637 19,366,091 2038 12,066,116 5,583,175 17,649,291 2039 10,689,663 3,443,541 14,133,203 2040 9,447,744 3,181,778 12,629,522 2041 7,839,913 1,797,238 9,637,150 2042 4,258,500 474,300 4,732,800 $ 311,631,636 $ 151,151,321 $ 462,782,957 8 Tax Supported Debt($) $40 $35 $30 $25 e $20 $15 $10 $5 N N N N N N N M M M M M M M M M M O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N N NCO EGO Tax Supported Debt (%) ■ 32.66% ■GO ■CO 67.34% 9 City of Denton Total Annual Debt Service(Principal&Interest)-Revenue Supported Debt Fiscal Year Ending September 30,2022 FY End General Obligation Bonds Certificates of Obligation Revenue 9-30 GOs Cos Bonds Total 2023 $ 23,898,764 $ 36,234,346 $ 25,295,259 $ 85,428,369 2024 21,566,619 35,820,875 25,300,313 82,687,807 2025 17,151,254 37,572,700 25,298,018 80,021,972 2026 10,165,850 37,396,375 25,295,282 72,857,508 2027 9,753,125 37,153,603 25,298,300 72,205,028 2028 10,398,850 34,674,206 25,300,530 70,373,586 2029 9,244,325 34,556,353 25,300,299 69,100,978 2030 9,286,575 34,615,963 25,298,164 69,200,702 2031 3,838,750 34,653,388 25,298,194 63,790,331 2032 - 37,215,400 25,299,853 62,515,253 2033 - 34,650,406 25,295,276 59,945,682 2034 - 31,434,975 25,301,145 56,736,120 2035 - 30,022,138 25,296,215 55,318,353 2036 - 29,123,713 25,299,258 54,422,971 2037 - 27,962,550 25,297,732 53,260,282 2038 - 27,933,650 7,223,309 35,156,959 2039 - 27,945,144 7,224,204 35,169,348 2040 - 27,132,681 7,225,700 34,358,382 2041 - 26,553,813 7,222,724 33,776,536 2042 - 24,303,622 7,225,125 31,528,747 2043 - 19,150,300 7,223,201 26,373,501 2044 - 19,144,316 7,221,587 26,365,903 2045 - 15,780,903 7,224,314 23,005,217 2046 - 11,908,497 7,221,224 19,129,721 2047 - 8,911,097 7,222,160 16,133,257 2048 - 5,371,084 7,221,888 12,592,972 2049 - 5,369,781 7,225,170 12,594,951 2050 - 4,988,369 7,221,849 12,210,218 2051 - 3,829,531 7,221,769 11,051,300 2052 - 1,976,119 - 1,976,119 $ 115,304,112 $ 743,385,897 $ 480,598,061 $ 1,339,288,070 10 Revenue Supported ($) $90 $80 $70 $GO $50 $40 $30 $20 $10 N N N N N N N M f��1 INYI M M f�/7 M 1^YI M f�/7 S g g R a 9 9 S 9 R O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N ■GO ■CO ■Revenue Bonds Revenue Supported (%) ■35.88% ■55.51% ■GO ■CO ■Revenue Bonds 11 City of Denton Total Annual Debt Service (Principal&Interest)-General Government Fiscal Year Ending September 30,2022 FY End 9-30 General Airport Water Park Warehouse Total 2023 $ 35,480,945 $ 737,293 $ 170,542 $ 48,366 $ 36,437,145 2024 $ 34,148,625 742,938 170,650 - 35,062,212 2025 $ 32,202,593 674,963 170,974 - 33,048,530 2026 $ 30,776,236 673,663 170,426 - 31,620,325 2027 $ 29,313,582 632,638 170,440 - 30,116,659 2028 $ 26,520,939 583,875 170,730 - 27,275,544 2029 $ 24,721,927 578,181 170,820 - 25,470,928 2030 $ 24,571,749 582,581 170,657 - 25,324,988 2031 $ 24,247,032 581,362 170,358 - 24,998,753 2032 $ 23,925,042 584,484 170,655 - 24,680,181 2033 $ 23,387,972 591,625 170,791 - 24,150,387 2034 $ 22,640,031 455,150 170,866 - 23,266,047 2035 $ 21,991,599 332,878 170,776 - 22,495,253 2036 $ 20,216,362 332,563 139,022 - 20,687,947 2037 $ 19,034,378 331,713 - 19,366,091 2038 $ 17,323,691 325,600 - - 17,649,291 2039 $ 14,133,203 - - - 14,133,203 2040 $ 12,629,522 - - - 12,629,522 2041 $ 9,637,150 - - - 9,637,150 2042 $ 4,732,800 - - - 4,732,800 $ 451,635,378 $ 8,741,505 $ 2,357,708 $ 48,366 $ 462,782,957 12 General Government ($) $40 $35 $30 $25 q $20 $15 $10 $5 N N N N N N N M M M M t+�l M M M M M 7 O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N N Warehouse ■Water Park ■Airport ■General General Government (%) o.olro u ■0.51% ■ 1.89% ■97.59% Warehouse ■Water Park ■Airport ■General 13 City of Denton Total Annual Debt Service(Principal&Interest)-Electric Fiscal Year Ending September 30,2022 FY End General Obligation Bonds Certificates of Obligation Revenue 9-30 GOs Cos Bonds Total 2023 $ 15,471,129 21,895,970 $ 25,295,259 $ 62,662,357 2024 14,129,475 21,875,113 25,300,313 61,304,900 2025 10,398,000 23,010,588 25,298,018 58,706,605 2026 5,329,875 23,001,688 25,295,282 53,626,845 2027 5,034,650 23,012,825 25,298,300 53,345,775 2028 5,718,875 21,725,244 25,300,530 52,744,649 2029 4,915,750 21,684,203 25,300,299 51,900,253 2030 4,946,250 21,721,169 25,298,164 51,965,583 2031 2,739,125 21,746,813 25,298,194 49,784,131 2032 23,335,500 25,299,853 48,635,353 2033 - 21,747,853 25,295,276 47,043,129 2034 19,023,731 25,301,145 44,324,877 2035 19,035,788 25,296,215 44,332,003 2036 19,061,125 25,299,258 44,360,383 2037 19,085,175 25,297,732 44,382,907 2038 19,115,163 7,223,309 26,338,472 2039 19,133,050 7,224,204 26,357,254 2040 19,149,556 7,225,700 26,375,257 2041 19,154,781 7,222,724 26,377,505 2042 19,152,622 7,225,125 26,377,747 2043 19,150,300 7,223,201 26,373,501 2044 19,144,316 7,221,587 26,365,903 2045 15,780,903 7,224,314 23,005,217 2046 11,908,497 7,221,224 19,129,721 2047 8,911,097 7,222,160 16,133,257 2048 5,371,084 7,221,888 12,592,972 2049 5,369,781 7,225,170 12,594,951 2050 4,988,369 7,221,849 12,210,218 2051 3,829,531 7,221,769 11,051,300 2052 1,976,119 - 1,976,119 $ 68,683,129 $ 513,097,952 $ 480,598,061 $ 1,062,379,142 14 Electric($) $70 $60 $50 $40 e $30 $20 ME $10 $- y pp op bp pp N N N N N N M M M M M M M M M M V V V C h h O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N ■GO ■CO ■Revenue Bonds Electric(%) ■6.47% ■45.24% 48.3oNu ■GO ■CO ■Revenue Bonds 15 City of Denton Total Annual Debt Service(Principal&Interest)-Water Fiscal Year Ending September 30,2022 FY End General Obligation Bonds Certificates of Obligation Revenue 9-30 GOs Cos Bonds Total 2023 $ 5,818,369 $ 4,421,449 - $ 10,239,819 2024 5,905,975 4,421,188 - 10,327,163 2025 5,636,950 4,733,488 - 10,370,438 2026 3,771,575 4,730,038 - 8,501,613 2027 3,781,175 4,731,372 - 8,512,547 2028 3,453,500 4,369,994 - 7,823,494 2029 3,140,200 4,349,781 - 7,489,981 2030 3,156,950 4,354,519 - 7,511,469 2031 389,500 4,358,150 - 4,747,650 2032 4,791,494 - 4,791,494 2033 - 4,353,781 - 4,353,781 2034 4,347,406 - 4,347,406 2035 3,721,544 - 3,721,544 2036 3,519,294 - 3,519,294 2037 3,026,756 - 3,026,756 2038 3,027,344 - 3,027,344 2039 3,025,691 - 3,025,691 2040 2,832,519 - 2,832,519 2041 2,830,713 - 2,830,713 2042 - 1,688,100 - 1,688,100 $ 35,054,194 $ 77,634,618 $ - $ 112,688,812 16 Water($) $12 $10 $8 0 ° $6 0 5 $4 $2 $- O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N N ■GO ■CO Water(%) ■68.89% ■31.11% ■GO CO 17 City of Denton Total Annual Debt Service(Principal&Interest)-Wastewater Fiscal Year Ending September 30,2022 FY End General Obligation Bonds Certificates of Obligation Revenue 9-30 GOs Cos Bonds Total 2023 1,747,649 6,881,043 - 8,628,693 2024 677,100 6,869,875 - 7,546,975 2025 342,050 7,236,575 - 7,578,625 2026 348,750 7,236,175 - 7,584,925 2027 354,850 7,231,900 - 7,586,750 2028 719,875 6,833,675 - 7,553,550 2029 733,000 6,775,400 - 7,508,400 2030 729,250 6,789,681 - 7,518,931 2031 451,000 6,801,319 - 7,252,319 2032 - 7,292,475 - 7,292,475 2033 6,791,716 - 6,791,716 2034 6,431,256 - 6,431,256 2035 5,976,131 - 5,976,131 2036 5,503,894 - 5,503,894 2037 5,279,944 - 5,279,944 2038 5,287,019 - 5,287,019 2039 5,283,528 - 5,283,528 2040 4,647,706 - 4,647,706 2041 4,064,019 - 4,064,019 2042 - 2,958,000 - 2,958,000 $ 6,103,524 $ 122,171,331 $ - $ 128,274,856 18 Wastewater($) 9 8 7 6 0 5 0 4 3 2 1 N N N N N N N M M M M M M M M M M CD CD C. O O O O O O O O O O O O O O O O O O O C. N N N N N N N N N N N N N N N N N N N N ■GO ■co Wastewater(%) ■95.24% ■ 4.76% ■GO ■CO 19 City of Denton Total Annual Debt Service(Principal&Interest)-Solid Waste Fiscal Year Ending September 30,2022 FY End General Obligation Bonds Certificates of Obligation Revenue 9-30 GOs Cos Bonds Total 2023 $ 861,617 $ 3,035,883 $ - $ 3,897,500 2024 854,069 2,654,700 - 3,508,769 2025 774,254 2,592,050 - 3,366,304 2026 715,650 2,428,475 - 3,144,125 2027 582,450 2,177,506 - 2,759,956 2028 506,600 1,745,294 - 2,251,894 2029 455,375 1,746,969 - 2,202,344 2030 454,125 1,750,594 - 2,204,719 2031 259,125 1,747,106 - 2,006,231 2032 - 1,795,931 - 1,795,931 2033 1,757,056 - 1,757,056 2034 1,632,581 - 1,632,581 2035 1,288,675 - 1,288,675 2036 1,039,400 - 1,039,400 2037 570,675 - 570,675 2038 504,125 - 504,125 2039 502,875 - 502,875 2040 502,900 - 502,900 2041 504,300 - 504,300 2042 - 504,900 - 504,900 $ 5,463,265 $ 30,481,996 $ - $ 35,945,260 20 Solid Waste ($} $4 $4 $3 $3 0 o $2 7 $2 $1 $� 00 N M 00 ON O N oN oNo ONO oNo oNo oNo oN oM oM OM oM QM oM M oM oM QM 5of `07 '7 N N N N N N N N /'N ■GO NCO Solid Waste (%) ■84.8% ■ 15.2% EGO NCO 21 HOUSE BILL 1378 SECTION 22 City of Denton Summary of Debt Obligations Fiscal Year Ending September 30,2022 TOTAL TAX-SUPPORTED AND REVENUE DEBT HB 1378 Calculation trl City Calculation 12i Total Authorized Debt Obligations $ 1,382,800,000 $ 1,382,800,000 Total Principal Of All Outstanding Debt Obligations $ 1,293,945,000 $ 1,293,945,000 Combined Principal And Interest Required To Pay All Outstanding Debt Obligations On Time And In Full $ 1,802,071,027 $ 1,802,071,027 TOTAL DEBT SECURED BY AD VALOREM TAXATION Total Authorized Debt Obligations Secured By Ad Valorem Taxation $ 1,049,845,000 $ 443,198,240 Total Principal Of All Outstanding Debt Obligations Secured By Ad Valorem Taxation $ 960,990,000 $ 354,343,240 Combined Principal And Interest Required To Pay All Outstanding Debt Obligations Secured By Ad Valorem Taxation On Time And In Full $ 1,321,472,966 $ 462,782,957 PER CAPITA TOTAL DEBT SECURED BY AD VALOREM TAXATION Total Authorized Debt Obligations Secured By Ad Valorem Taxation Expressed As A Per Capita Amount $ 7,144 $ 3,016 Total Principal Of Outstanding Debt Obligations Secured By Ad Valorem Taxation As A Per Capita Amount $ 6,540 $ 2,411 Combined Principal And Interest Required To Pay All Outstanding Debt Obligations Secured By Ad Valorem Taxation On Time And hi Full As A Per Capita Amount $ 8,993 $ 3,149 Population Total Used To Calculate Per Capita Figures 146,950 146,950 Source And Year of Data Used To Calculate Per Capita Figures City of Denton City of Denton Planning Department, Planning Department, 2022 2022 (0 For all"Authorized Debt Obligations"amounts and calculations,the City has included all voted but unissued amounts and all amounts of debt that were authorized by the City Council to be issued,but,as of the end of the fiscal year remained unissued,as well as all outstanding debt as of the end of the fiscal year.The City currently has a$100 million GO ECP Program under existing GO debt authorization. (2)City Calculation excludes general obligation debt issued for Enterprise Funds(Electric,Water,Wastewater and Solid Waste)since the City has paid that debt with revenues from each respective fund. General obligation debt is issued with a limited pledge of Utility System revenue for this purpose. The City currently has a$300 million Utility ECP Program under existing utility debt authorization. 23 City of Denton Individual Debt Obligations Fiscal Year Ending September 30,2022 Outstanding Debt Principal Principal Combined Final Matu ity Secured By Total Proceeds Proceeds Proceeds Current Credit Rating Obligations Issued Outstanding ' Principal&Interest Date Taxes Received Spent Unspent Moody's S&P Fitch Certificates of $ 44,675,000 $ 8,575,000 $ 10,079,759 February 15,2032 Yes $ 48,950,742 $ 48,950,742 $ - Not Rated AA+ AA+ Obligation,Series 2012 Proceeds from the sale of the Certificates will be used for(a) acquisition of vehicles and equipment for, and acquiring,constructing,installing and equipping additions, extensions,renovations and improvements to,the City's solid waste disposal system; (b)renovations to, and equipping of, existing municipal buildings, including the acquisition and installation of replacement heating,venting and air conditioning equipment and flooring; (c)acquisition of vehicles and equipment for the fire,police, streets and traffic control, facilities management, and parks and recreation departments; (d)constructing and improving streets, including installation of traffic signals; (e)acquisition of equipment for, and acquiring, constructing,installing and equipping additions, extensions,renovations and improvements to,the City's waterworks and sewer system; (f) acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions,renovations and improvements to,the City's electric light and power system; and also for the purpose of paying all or a portion of the City's contractual obligations for professional services, including engineers, architects, attorneys,map makers,auditors, and financial advisors,in connection the design of an animal shelter and with said projects and said Certificates General Obligation $ 33,590,000 $ 2,545,000 $ 2,876,494 February 15,2032 Yes $ 4,152,707 $ 4,152,707 $ - Not Rated AA+ AA+ Refunding and Improvement Bonds, Series2012 Proceeds of the Bonds are expected to be used(i)to refund certain outstanding obligations of the City for debt service savings and(ii)for various street improvements and park land acquisitions and improvements, and(iii)to pay the costs associated with the issuance of the Bonds. Certificates of $ 63,520,000 $ 34,835,000 $ 41,652,625 February 15,2033 Yes $ 67,807,600 $ 67,807,600 $ - Not Rated AA+ AA+ Obligation,Series 2013 Proceeds from the sale of the Certificates will be used for(a) acquisition of vehicles and equipment for, and acquiring,constructing,installing and equipping additions, extensions,renovations and improvements to,the City's solid waste disposal system, including the acquisition of land for the City landfill; (b)renovations to, and equipping of, existing municipal buildings, including the acquisition and installation of replacement heating, venting and air conditioning equipment,roofing and flooring; (c)acquisition of vehicles and equipment for the fire,police,building inspections, animal services, streets and traffic control, facilities management, and parks and recreation departments; (d)constructing and improving streets, including installation of traffic signals; (e) acquisition of land for the municipal airport; (t) acquiring, constructing, installing and equipping a 24 Outstanding Debt Principal Principal Combined Final Matu ity Secured By Total Proceeds Proceeds Proceeds Current Credit Rating Obligations Issued Outstanding ' Principal&Interest Date Taxes Received Spent Unspent Moodys S&P Fitch public safety training facility; (g)acquiring, constructing, installing and equipping additions, extensions,renovations and improvements to existing fire stations, (h)acquiring, constructing,installing and equipping two animal shelters; (i)acquisition of equipment for, and acquiring,constructing, installing and equipping additions, extensions,renovations and improvements to,the City's waterworks and sewer system; and G)acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions,renovations and improvements to,the City's electric light and power system; and also for the purpose of paying all or a portion of the City's contractual obligations for professional services,including engineers,architects, attorneys,map makers, auditors, and financial advisors,in connection with said projects and said Certificates. General Obligation $ 10,735,000 $ 4,610,000 $ 5272231 February 15,2033 Yes $ 4,081,275 $ 4,081275 S - Not Rated AA+ AA+ Refunding and Improvement Bonds, Series 2013 Proceeds of the Bonds are expected to be used(i)to refund certain outstanding obligations of the City for debt service savings; (ii)for various street improvements, and(iii)to pay the costs associated with the issuance of the Bonds. Certificates of $ 89,180,000 $ 66,310,000 $ 94,828,481 February 15,2044 Yes $ 93,781,795 $ 93,781,795 $ Not Rated AA+ AA+ Obligation,Series 2014 Proceeds of the sale of the Certificates will be used(a) acquisition of vehicles and equipment for, and acquiring, constructing,installing and equipping additions, extensions,renovations and improvements to,the City's solid waste disposal system, including the acquisition of land for the City landfill; (b)renovations to, and equipping of, existing municipal buildings, including the acquisition and installation of replacement heating, venting and air conditioning equipment,roofing and flooring; (c)acquisition of vehicles and equipment for the fire,police,building inspections, animal services, streets and traffic control, facilities management, and parks and recreation departments; (d)constructing and improving streets, including installation of traffic signals; (e) acquiring, constructing, installing and equipping hangars for the municipal airport; (f)acquiring, constructing,installing and equipping additions, extensions,renovations and improvements to the Civic Center Pool facilities; (g)acquiring, constructing,installing and equipping replacement facility for Fire Station Number 2, including related site preparation; (h)acquisition of equipment for, and acquiring, constructing,installing and equipping additions, extensions,renovations and improvements to,the City's waterworks and sewer system; (i)acquisition of equipment for, and acquiring,constructing, installing and equipping additions, extensions,renovations and improvements to,the City's electric light and power system; and also for the purpose of paying all or a portion of the City's contractual obligations for professional services,including engineers, architects, attorneys,map makers, auditors, and financial advisors, in connection with said projects and said Certificates. 25 Outstanding Debt Principal Principal Combined Final Matu ity Secured By Total Proceeds Proceeds Proceeds Current Credit Rating Obligations Issued Outstanding ' Principal&Interest Date Taxes Received Spent Unspent Moody's S&P Fitch General Obligation $ 7,330,000 $ 2,700,000 $ 3,273,625 February 15,2034 Yes $ 4,063,543 $ 4,063,543 $ Not Rated AA+ AA+ Refunding and Improvement Bonds, Series 2014 Proceeds of the Bonds are expected to be used(i)to refund certain outstanding obligations of the City for debt service savings; (ii)for various street improvements, and(iii)to pay the costs associated with the issuance of the Bonds. General Obligation $ 27,155,000 $ 9,590,000 $ 10,001,150 February 15,2025 Yes $ 147,264 $ 147264 $ - Not Rated AA+ AA+ Refunding Bonds, Series 2014 Proceeds of the Bonds are expected to be used(i)to refund certain outstanding obligations of the City for debt service savings; (ii)to refinance a portion of the City's contractual obligations to the Texas Municipal Power Agency(the "TMPA")under a power sales contract with the TMPA, specifically in respect to the refunding of approximately$13,430,000 in maturity value of certain outstanding TMPA bonds; and(iii)to pay the costs associated with the issuance of the Bonds. Certificates of $ 93,015,000 $ 70,045,000 $ 104,941,019 February 15,2045 Yes $ 97,983,335 $ 97,983,335 $ Not Rated AA+ AA+ Obligation,Series 2015 Proceeds of the sale of the Certificates will be used(a) acquisition of vehicles and equipment for, and acquiring, constructing,installing and equipping additions, extensions,renovations and improvements to,the City's solid waste disposal system, including the acquisition of land for the City landfill; (b)renovations to, and equipping of, existing municipal buildings, including the acquisition and installation of replacement heating, venting and air conditioning equipment,roofing and flooring; (c)acquisition of vehicles and equipment for the fire,police,building inspections, animal services, streets and traffic control, facilities management, and parks and recreation departments; (d)acquiring,constructing,installing and equipping parking facilities; (e) acquisition of land and buildings to be used for administration facilities and/or park purposes; (f)acquiring, constructing,installing and equipping additions, extensions,renovations and improvements to the Civic Center Pool facilities; and(g) acquiring, constructing,installing and equipping replacement facility for Fire Station Number 2, including related site preparation, and acquiring, constructing,installing and equipping a new fire station, including the acquisition of land therefor; (h)acquisition of vehicles and equipment for, and acquiring, constructing, installing and equipping additions, extensions,renovations and improvements to,the City's waterworks and sewer system; and(i)acquisition of equipment for,and acquiring, constructing, installing and equipping additions, extensions,renovations and improvements to,the City's electric light and power system, and also for the purpose of paying all or a portion of the City's contractual obligations for professional services,including engineers, architects, attorneys,map makers, auditors, and financial advisors, in connection with said projects and said Certificates. 26 Outstanding Debt Principal Principal Combined Final Matu ity Secured By Total Proceeds Proceeds Proceeds Current Credit Ratmg Obligations Issued Outstanding ' Principal&Interest Date Taxes Received Spent Unspent Moody's S&P Fitch General Obligation $ 37,640,000 $ 24 240,000 $ 29277,469 February 15,2035 Yes $ 23,013,425 $ 23,013,425 $ Not Rated AA+ AA+ Refunding and Improvement Bonds, Series 2015 Proceeds of the Bonds are expected to be used(i)to refund certain outstanding obligations of the City for debt service savings; (ii)for street improvements,public safety facilities improvements, stormwater drainage and flood control improvements, and park system improvements, and (iii)to pay the costs associated with the issuance of the Bonds. General Obligation $ 33,945,000 $ 3,540,000 $ 3,739,125 February 15,2026 Yes $ 37,992,142 $ 37,992,142 $ - Not Rated AA+ AA+ Refunding Bonds, Series 2015 Proceeds of the Bonds will be used(i)to currently refund in part, and advance refund in part,certain outstanding obligations of the City for debt service savings; (ii)to refinance a portion of the City's contractual obligations to the Texas Municipal Power Agency(the "TMPA")under a power sales contract with the TMPA, specifically in respect to the refunding of approximately$3,430,000 in maturity value of certain outstanding TMPA bonds; and(iii)to pay the costs associated with the issuance of the Bonds. Certificates of $ 83,305,000 $ 64295,000 $ 93,471,616 February 15,2046 Yes $ 92,340,554 $ 92,340,554 $ Not Rated AA+ AA+ Obligation,Series 2016 Proceeds from the sale of the Certificates will be used(a)acquisition of vehicles and equipment for, and acquiring,constructing, installing and equipping additions, extensions,renovations and improvements to,the City's solid waste disposal system, including the acquisition of land for the City landfill; (b)renovations to, and equipping of, existing municipal buildings, including the acquisition and installation of replacement heating, venting and air conditioning equipment,roofing and flooring; (c)acquisition of vehicles and equipment for the fire,police,building inspections, community improvement services , animal services, streets and traffic control , facilities management, and parks and recreation departments; (d) acquiring,constructing, installing and equipping additions, extensions,renovations and improvements to parking facilities; (e)constructing and improving streets, including landscaping, drainage,utility line relocations and the acquisition of land and rights-of-way therefor; (f)acquiring, constructing,installing and equipping a new fire training facility; and(g) acquisition of land for a new fire station; (h) acquisition of vehicles and equipment for, and acquiring, constructing , installing and equipping additions, extensions,renovations and improvements to,the City's waterworks and sewer system; and(i)acquisition of equipment for,and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to,the City's electric light and power system, and also for the purpose of paying all or a portion of the City's contractual obligations for professional services, including engineers, architects, attorneys,map makers,auditors , and financial advisors, in connection with said projects and said Certificates. 27 Outstanding Debt Principal Principal Combined Final Matwity Secured By Total Proceeds Proceeds Proceeds Current Credit Ratmg Obligations Issued Outstanding ' Principal&Interest Date Taxes Received Spent Unspent Moody's S&P Fitch General Obligation $ 28,930,000 $ 20,540,000 $ 24,577,400 February 15,2036 Yes $ 16,915297 $ 16,915,297 $ Not Rated AA+ AA+ Refunding and Improvement Bonds, Series 2016 Proceeds of the Bonds are expected to be used(i)to refund certain outstanding obligations of the City for debt service savings; (ii)for street improvements,public safety facilities improvements, stormwater drainage and flood control improvements, and park system improvements, and (iii)to pay the costs associated with the issuance of the Bonds. General Obligation $ 38,425,000 $ 23,115,000 $ 26,833,400 February 15,2030 Yes $ 175,657 $ 175,657 $ - Not Rated AA+ AA+ Refunding Bonds, Series 2016 Proceeds from the sale of the Bonds,together with funds contributed by the City, are expected to be used(i)refund all outstanding obligations of the City's Utility System for debt service savings; and(ii)to pay the costs associated with the issuance of the Bonds. Utility System Revenue $ 214,890,000 $ 190,965,000 $ 271,136,875 December 1,2036 No $ 246,164298 $ 246,107,783 $ 56,515 Not Rated A+ A Bonds,Series 2017 Proceeds from the sale of the Series 2017 Bonds will be used to(a)acquire and construct additions and improvements to the City's electric light and power system including new quick start peak power generation facilities; (b) fund capitalized interest on the Series 2017 Bonds; and(c)pay the costs of issuance in connection with the issuance of the Series 2017 Bonds. Certificates of $ 90,800,000 $ 66,765,000 $ 102,572,575 February 15,2047 Yes $ 98,365,003 $ 95,118,873 $ 3,246,130 Not Rated AA+ AA+ Obligation,Series 2017 Proceeds from the sale of the Certificates will be used for(a) acquisition of vehicles and equipment for, and acquiring,constructing,installing and equipping additions, extensions,renovations and improvements to,the City's solid waste disposal system; (b)renovations to, and equipping of, existing municipal buildings, including the acquisition and installation of replacement heating,venting and air conditioning equipment,roofing and flooring; (c) acquisition of vehicles and equipment for the fire,police,building inspections, community improvement services, animal services, streets and traffic control, facilities management, and parks and recreation departments; (d)acquiring, constructing, installing and equipping additions, extensions,renovations and improvements to parking facilities; (e) constructing and improving streets, including landscaping, drainage,utility line relocations and the acquisition of land and rights-of-way therefor; (f) acquisition of equipment for, and acquiring, constructing,installing and equipping additions, extensions,renovations and improvements to,the City's electric light and power system; and also for the purpose of paying all or a portion of the City's contractual obligations for professional services, including engineers, architects, attorneys, map makers, auditors, and financial advisors, in connection with said projects and said Certificates. 28 Outstanding Debt Principal Principal Combined Final Matu ity Secured By Total Proceeds Proceeds Proceeds Current Credit Ratmg Obligations Issued Outstanding ' Principal&Interest Date Taxes Received Spent Unspent Moody's S&P Fitch General Obligation $ 29,105,000 $ 13,530,000 $ 17,137,909 February 15,2037 Yes $ 17,294,871 $ 16,868,653 $ 426,218 Not Rated AA+ AA+ Refunding and Improvement Bonds, Series 2017 Proceeds of the Bonds are expected to be used(i)to refund certain outstanding obligations of the City described on Schedule I attached hereto(the "Refunded Obligations") for debt service savings; (ii) for street improvements and public safety facilities improvements, and(iii)to pay the costs associated with the issuance of the Bonds. General Obligation $ 19235,000 $ 16,660,000 $ 21,919,038 February 15,2038 Yes $ 19,871,128 $ 19,871,128 $ - Not Rated AA+ AA+ Bonds,Series 2018 Proceeds of the Bonds are expected to be used(i) street improvements, storm water drainage and flood control improvements, and park system improvements; and(ii)to pay the costs associated with the issuance of the Bonds. Certificates of $ 9,555,000 $ 51990,000 $ 7,485,213 February 15,2038 Yes $ 10,020,370 $ 9,365,186 $ 655,184 Not Rated AA+ AA+ Obligation,Series 2018 Proceeds will be used for(a)renovations to, and equipping of, existing municipal buildings, including the acquisition and installation of replacement heating,venting and air conditioning equipment,roofing and flooring; (b)acquisition of vehicles and equipment for the fire,police, building inspections,community improvement services, animal services, streets and traffic control, facilities management, and parks and recreation departments; (c)acquiring, constructing, installing and equipping additions, extensions,renovations and improvements to runways and taxiways at the municipal airport; and(d) acquiring, constructing,renovating,installing and equipping fire stations, including the acquisition of land therefor: and also for the purpose of paying all or a portion of the City's contractual obligations for professional services,including engineers, architects, attorneys,map makers, auditors, and financial advisors, in connection with said projects and the Certificates(see "Plan of Financing"). Certificates of $ 29,545,000 $ 24,470,000 $ 32,423,235 February 15,2038 Yes $ 31,802,097 $ 24,937,683 $ 6,864,414 Not Rated AA+ AA+ Obligation,Series Proceeds from the sale of the Certificates will be used for(a)renovating, constructing, expanding, improving and equipping existing municipal service center building; (b) constructing and improving streets, including landscaping, drainage,utility line relocations and the acquisition of land and rights-of-way therefor; (c)constructing,reconstructing and improving vehicle roadways at the municipal airport; (d)acquiring, constructing, installing and equipping fire stations, including the acquisition of land therefor; (e) acquiring, constructing, installing and equipping a public safety facility for the police department,including the acquisition of land therefor; (acquiring and installing a radio communications system for the City; 29 Outstanding Debt Principal Principal Combined Final Matwity Secured By Total Proceeds Proceeds Proceeds Current Credit Ratmg Obligations Issued Outstanding ' Principal&Interest Date Taxes Received Spent Unspent Moodys S&P Fitch and also for the purpose of paying all or a portion of the City's contractual obligations for professional services, including engineers, architects, attorneys,map makers, auditors, and financial advisors. General Obligation $ 44,340,000 $ 3U45,000 $ 36243,900 February 15,2039 Yes $ 48,176,707 $ 32,697,284 $ 15,479,423 Not Rated AA+ AA+ Refunding& Improvement Bonds, Series 2019 (i)up to $28,620,000 for the public purpose of refunding the Refunded Obligations, (ii)for the purpose of the acquisition of property and making improvements for public purposes in said Issuer,to wit: (A) $14,580,000 for street improvements, (B) $705,000 for stormwater drainage and flood control improvements, and(C) $4,085,000 for park system improvements. Certificates of $ 28,755,000 $ 23,780,000 $ 31,608,225 February 15,2049 Yes $ 30,516239 $ 29,009,401 $ 1,506,838 Not Rated AA+ AA+ Obligation,Series 2019 Proceeds will be used for acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions,renovations and improvements to,the(a)Issuer's waterworks system; (b) Issuer's wastewater system; and(c)the Issuer's electric light and power system; and also for the purpose of paying all or a portion of the Issuer's contractual obligations for professional services, including engineers, architects, attorneys, map makers, auditors, and financial advisors, in connection with said proj ects and said Certificates of Obligation; and up to$10,110,000 in principal amount for the purpose of: renovations to, and equipping of, existing municipal buildings, (a)including the acquisition and installation of replacement heating,venting and air conditioning equipment,roofing and flooring; (b)acquisition of vehicles and equipment for the fire,police, building inspections,community improvement services, animal services, streets and traffic control, facilities management, and parks and recreation departments; (c)constructing and improving streets, including landscaping, drainage,utility line relocations and the acquisition of land and rights-of-way therefor; (d) acquiring, constructing, installing and equipping a public safety facility for the police department, including the acquisition of land therefor; (e) acquiring, extending, constructing,renovating, improving and equipping parking facilities,including the acquisition of land therefor; and(f) acquisition and installation of technology equipment including computer equipment and software for various municipal departments; and also for the purpose of paying all or a portion of the Issuer's contractual obligations for professional services, including engineers, architects, attorneys,map makers, auditors, and financial advisors, in connection with said projects and said Certificates of Obligation. General Obligation $ 62,080,000 $ 47,770,000 $ 58,140,875 February 15,2040 Yes $ 70,866,956 $ 56,151,038 $ 14,715,918 Not Rated AA+ AA+ Refundmg& Improvement Bonds, Series 2020 30 Outstanding Debt Principal Principal Combined Final Matu ity Secured By Total Proceeds Proceeds Proceeds Current Credit Ratmg Obligations Issued Outstanding � Principal&Interest Date Taxes Received Spent Unspent Moody's S&P Fitch Proceeds of the Bonds are expected to be used for(i)various street improvements,park system improvements and public safety facilities for the police department, (ii)to refund the bonds described in Schedule I—Schedule of Refunded Obligations(the "Refunded Obligations")for debt service savings and(iii)to pay the costs associated with the issuance of the Bonds(see "Plan of Financing"). Certificate of $ 58,080,000 $ 53,950,000 $ 69,885,050 February 15,2050 Yes $ 64267,139 $ 58,041,418 $ 6225,721 Not Rated AA+ AA+ ObliPations.Series 2020 Proceeds will be used for the purpose of paying all or a portion of the Issuer's contractual obligations incurred pursuant to contracts for the purchase, construction and acquisition of certain real and personal property,to wit: up to $37,120,000 in principal amount for the purpose o£ (a) acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions,renovations and improvements to,the Issuer's wastewater system; and(b) acquisition of equipment for, and acquiring, constructing,installing and equipping additions, extensions, renovations and improvements to,the Issuer's electric light and power system; and also for the purpose of paying all or a portion of the Issuer's contractual obligations for professional services, including engineers, architects, attorneys,map makers, auditors, and financial advisors, in connection with said projects and said Certificates of Obligation; and up to$27,250,000 in principal amount for the purpose of: (a) acquisition of vehicles and equipment for the fire,police,building inspections, community improvement services, animal services, streets and traffic control, facilities management, and parks and recreation departments; (b) acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to existing fire stations; (c) acquiring, constructing,reconstructing,renovating, installing and equipping a municipal government building for municipal development services and other municipal administrative purposes, and the acquisition of land and interests in land and properties therefor; (d)acquiring,constructing,reconstructing,renovating, installing and equipping municipal parks; (e) acquiring land and building for facility for homeless and indigent shelter and services; and also for the purpose of paying all or a portion of the Issuer's contractual obligations for professional services, including engineers, architects, attorneys,map makers, auditors, and financial advisors, in connection with said projects and said Certificates of Obligation(collectively,the "Projects"). General Obligation $ 14,150,000 $ 12,635,000 $ 15,316,600 February 15,2031 Yes $ 17,031,195 $ 17,031,195 $ Not Rated AA+ AA+ Refunding Bonds, Series 2020A Proceeds of the Bonds are expected to be used for(i)to refund the bonds described in Schedule I—Schedule of Refunded Obligations(the "Refunded Obligations")for debt service savings and(ii)to pay the costs associated with the issuance of the Bonds(see"Plan of Financing"). Certificates of $ 97,035,000 $ 93,830,000 $ 126285,578 February 15,2021 Yes $ 104246,453 $ 19,629,962 $ 84,616,490 Not Rated AA+ AA+ Obligation,Series 2021 31 Outstanding Debt Principal Principal Combined Final Matwity Secured By Total Proceeds Proceeds Proceeds Current Credit Ratmg Obligations Issued Outstanding � Principal&Interest Date Taxes Received Spent Unspent Moody's S&P Fitch PURPOSE . . . Proceeds from the sale of the Certificates will be used for(i)acquisition of equipment for, and acquiring,constructing, installing and equipping additions, extensions,renovations and improvements to,the City's waterworks and wastewater system; (ii)acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions,renovations and improvements to,the City's electric light and power system; (iii) constructing and improving streets, including landscaping, drainage,utility line relocations and the acquisition of land and rights-of-way therefor; (iv)acquisition of vehicles and equipment for the fire,police,building inspections, community improvement services, animal services, streets and traffic control, facilities management, and parks and recreation departments; (v)renovations to, and equipping of, existing municipal buildings, including the acquisition and installation of replacement heating,venting and air conditioning equipment,roofing and flooring; (vi) acquisition and installation of technology equipment including computer equipment and software for various municipal departments; (vii) constructing,reconstructing,renovating, installing and equipping facility for homeless and indigent shelter and services; and (viii)renovations to, expansion of, and equipping existing municipal vehicle maintenance facility; and also for the purpose of paying all or a portion of the City's contractual obligations for professional services, including engineers,architects, attorneys,map makers, auditors, and financial advisors,in connection with said projects and the Certificates (see "Plan of Financing"). General Obligation $ 54,710,000 $ 52,985,000 $ 68,044,769 February 15,2041 Yes $ 59,608,180 $ 51,859,593 $ 7,748,587 Not Rated AA+ AA+ Bonds,Series 2021 PURPOSE . . . Proceeds from the sale of the Certificates will be used for(i)acquisition of equipment for, and acquiring,constructing, installing and equipping additions, extensions,renovations and improvements to,the City's waterworks and wastewater system; (ii)acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions,renovations and improvements to,the City's electric light and power system; (iii) constructing and improving streets, including landscaping, drainage,utility line relocations and the acquisition of land and rights-of-way therefor; (iv)acquisition of vehicles and equipment for the fire,police,building inspections, community improvement services, animal services, streets and traffic control, facilities management, and parks and recreation departments; (v)renovations to, and equipping of, existing municipal buildings, including the acquisition and installation of replacement heating,venting and air conditioning equipment,roofing and flooring; (vi) acquisition and installation of technology equipment including computer equipment and software for various municipal departments; (vii) constructing,reconstructing,renovating, installing and equipping facility for homeless and indigent shelter and services; and (viii)renovations to, expansion of, and equipping existing municipal vehicle maintenance facility; and also for the purpose of paying all or a portion of the City's contractual obligations for professional services,including engineers, architects, attorneys,map makers, auditors, and financial advisors,in connection with said projects and the Certificates (see "Plan of Financing"). Utility System Revenue $ 141,990,000 $ 141,990,000 $ 209,461,186 February 15,2050 No $ 141,990,000 $ 141,990,000 $ Not Rated A+ A Refunding Bonds, Taxable Series 2021 32 Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Current Credit Rating Obligations Issued Outstanding ' Principal&Interest Date Taxes Received Spent Unspent Moody's S&P Fitch Proceeds from the sale of the Taxable Series 2021 Bonds will be used to(a)refund outstanding commercial paper notes("Refunded Notes"); and (b)pay the costs of issuance in connection with the issuance of the Taxable Series 2021 Bonds(See"Plan of Financing—Purpose"and"Plan of Financing—Refunded Notes"). Certificates of $ 112,155,000 $ 112,155,000 $ 179,303,842 February 15,2052 Yes $ 119,729,679' $ 1,367286 $ 118,362,393 Not Rated AA+ AA+ Obligation,Series 2022 PURPOSE . . . Proceeds from the sale of the Certificates will be used for the purchase, construction and acquisition of certain real and personal property,to wit: (i) acquiring, constructing, installing and equipping fire stations; (ii)acquisition of vehicles and equipment for the fire,police, building inspections,community improvement services, animal services, streets and traffic control, facilities management, airport,technology services, fleet management,warehouse management and parks and recreation departments; (iii)renovations to, and equipping of, existing municipal buildings, including the acquisition and installation of replacement heating,venting and air conditioning equipment,roofing and flooring; (iv)acquisition and installation of electric generator equipment for municipal buildings; (v)acquiring, constructing and installing door security systems, including security system technology equipment and software, for municipal buildings; (vi)constructing,reconstructing, renovating, installing and equipping municipal parks; (vii)renovations to, expansion of, and equipping existing municipal vehicle maintenance facility; and(viii) acquisition of vehicles and equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to,the City's solid waste disposal system; (ix)acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions,renovations and improvements to,the City's waterworks and wastewater system; and(x)acquisition of equipment for,and acquiring, constructing, installing and equipping additions, extensions,renovations and improvements to,the City's electric light and power system and also for the purpose of paying all or a portion of the City's contractual obligations for professional services, including engineers,architects, attorneys,map makers, auditors, and financial advisors,in connection with said projects and the Certificates (see "Plan of Financing"). General Obligation $ 71285,000 $ 71,85,000 $ 104,81,763 February 15,2042 Yes $ 76,874,578' $ 17,145,023 $ 59,729555 Not Rated AA+ AA+ Bonds,Series 2022 PURPOSE . . . Proceeds of the Bonds are expected to be used for(i)various street improvements, (ii)public safety facilities, (iii)the acquisition of park land, (iv)refunding the obligations described in Schedule I—Schedule of Refunded Obligations (the "Refunded Obligations")for debt service savings , and(v)to pay the costs associated with the issuance of the Bonds(see "Plan of Financing"). TOTAL $ 1,669,155,000 $ 1,293,945,000 $ 1,802,071,027 $ 19648,230,227 $ 19328,596,840 $319,633,386 33 Glossary of Terms The HB 1378 Section of the Annual Debt Report contains terminology provided by the Texas Comptroller's Office. To assist the reader of this document in understanding these terms, a glossary of terms has been included in the document as provided by the Texas Comptroller's Office. Political Subdivision. Political subdivisions are counties, municipalities,school districts,junior college districts, other special districts, or other subdivisions of state government. Total Authorized Debt Obligations. Debt obligations are defined in the bill as issued public securities which are instruments, including bonds, certificates, notes, or other types of obligations authorized to be issued by an issuer under a statute, a municipal home-rule charter, or the constitution of this state. Issuance is the process of authorizing, selling, and delivering public debt. Public security authorization means a resolution, order or ordinance that is approved or adopted,or any other action taken in a proceeding, by the governing body of an issuer in authorizing the issuance of a public security. Total Principal of all Outstanding Debt Obligations.Total amount borrowed (par)of all obligations that have yet to be repaid. Combined Principal and Interest required to pay all Outstanding Debt Obligations on time and in full. Total amount borrowed (par)that has yet to be repaid plus the cost of interest. Total Authorized Debt Obligations Secured by Ad Valorem Taxation.Total debt obligations secured by a pledge of property taxes. Total Principal of all Outstanding Debt Obligations secured by Ad Valorem Taxation. Total amount borrowed (par) of obligations secured by a pledge of property taxes that have yet to be repaid. Combined Principal and Interest required to pay all Outstanding Debt Obligations secured by Ad Valorem Taxation on time and in full. Total amount borrowed (par)of all property tax-secured obligations plus the cost of interest. Total Authorized Debt Obligations secured by Ad Valorem Taxation expressed as a Per Capita Amount. Total authorized debt obligations secured by a pledge of property taxes divided by the population of the political subdivision. Total Principal of Outstanding Debt Obligations secured by Ad Valorem Taxation as a Per Capita Amount.Total amount borrowed (par) secured by a pledge of property taxes divided by the population of the political subdivision. Combined Principal and Interest required to pay all Outstanding Debt Obligations secured by Ad Valorem Taxation on time and in full as a Per Capita Amount. Total debt obligations secured by a pledge of property taxes plus the cost of debt service on these obligations divided by the population of the political subdivision. 34 Glossary of Terms Population total used to calculate per capita figures. The denominator used to calculate per capita figures. This is a population total for the political subdivision. Source and Year of population figure used to calculate Per Capita figures.The source of population data comprising the denominator of per capita figures. Outstanding Debt Obligation. An issued public security that has yet to be repaid. Conduit or Component Debt. Debt that is not a legal liability of the political subdivision but is secured by another entity. Principal Issued.Total amount borrowed (par). Principal Outstanding.Total amount borrowed (par)of obligation that has yet to be repaid. Combined principal and interest required to pay each Outstanding Debt Obligation on time and in full. The total amount borrowed (par) plus the cost of interest for each individual debt obligation or bond series. Final Maturity Date.The final payment date of individual debt obligation at which point all principal and interest will be paid off. Secured in any way by Ad Valorem Taxes. Indicates which individual debt obligations are in part or whole pledged with property taxes. Total Proceeds Received.Total assets received from the sale of a new issue of public securities. Proceeds Spent. The portion of total proceeds received that have been spent. Proceeds Unspent.The portion of total proceeds received that are remaining to be spent. Official stated purpose for which the debt obligation was authorized. The reason for the debt issuance as defined in ballot language, if applicable, or the Official Statement. Current Credit Rating. Existing rating given by any nationally recognized credit rating organization to debt obligations. 35