2019-039 Debt Summary Report as of Sept. 30, 2018Date: March 8, 2019 Report No. 2019-039
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 Sept. 30,
2018. This report is prepared on an annual basis to provide citizens and the general 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 in order 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.
On March 5, 2019 the City’s Audit/ Finance Committee reviewed the Debt Summary Report and
recommended that it be submitted to the full City Council for any additional feedback.
CONCLUSION:
If no feedback is received, Staff will post the report on the City’s website for the general public
on Friday, March 15, 2019. The report is intended to be updated annually in conjunction with
the City’s fiscal year end.
ATTACHMENT(S):
1. Debt Summary Report as of Sept. 30, 2018
STAFF CONTACT:
Antonio Puente, Jr.,
Chief Financial Officer
(940) 349-7283
Antonion.Puente@cityofdenton.com
City of Denton
Debt Summary Report
Fiscal Year Ending September 30, 2018
Contact:
City of Denton Finance Department
Attn: Antonio Puente, Jr. – Chief Financial Officer
215 E. McKinney St.
Denton, Texas 76201
Email: Antonio.Puente@cityofdenton.com
Phone: 940-349-7283
Fax: 940-349-7206
Website: www.cityofdenton.com
Published: March 15, 2019
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.
TABLE OF CONTENTS
Introduction…………………………………………………………………………………………. 3
CITY DEBT 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
Glossary of Terms………………………………………………………………………….……..…32
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 (i.e., 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 Comprehensive 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:
Moody’s1 Standard & Poor’s Fitch
General Obligation Debt Aa2 AA+ AA+
Revenue Bond Debt2 Not Rated AA- A+
1Moody’s has not rated a new general obligation debt issue since 2011 or a revenue bond debt issue since 2008, although
surveillance ratings remain unchanged. All previously rated revenue bond debt have been refunded or paid off.
2Ratings for the Utility System Revenue Bonds, Series 2017 which were originally rated in December 2016. Fitch rating
was affirmed in December 2018.
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 CO’s issued for utility purposes are repaid from the specific utility
fund for which the debt was issued. CO’s 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 CO’s (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, 2018, the City
only has the Utility System Revenue Bonds, Series 2017 outstanding.
OUTSTANDING DEBT:
The City’s total outstanding principal and interest as of September 30, 2018 is shown in Table 1 on
page 6 of this report.
4
CITY DEBT SECTION
5
Principal Interest Total
GOs 239.00$ 54.98$ 293.98$
COs 528.25$ 236.80$ 765.05$
Revenue Bonds 214.89$ 121.16$ 336.05$
Total 982.14$ 412.94$ 1,395.08$
FY End Revenue
9-30 Tax Supported Revenue Supported Tax Supported Revenue Supported Bonds Total
2019 15,043,965 23,665,908 10,284,850 41,201,958 10,685,000 100,881,680
2020 14,263,450 23,707,969 9,850,681 40,574,794 18,075,500 106,472,396
2021 13,930,960 19,961,411 9,057,981 38,738,082 18,076,750 99,765,184
2022 13,012,842 17,280,317 8,286,669 37,525,925 18,073,125 94,178,877
2023 11,721,321 12,031,201 6,816,394 35,477,406 18,073,625 84,119,946
2024 11,185,337 9,625,569 5,981,794 35,147,882 18,077,000 80,017,581
2025 10,297,714 6,830,129 5,794,044 35,102,607 18,077,125 76,101,618
2026 9,655,171 4,896,300 5,624,706 29,493,632 18,073,500 67,743,309
2027 9,084,052 4,438,525 5,461,350 29,291,703 18,075,875 66,351,505
2028 7,604,690 3,152,100 5,018,344 28,933,078 18,077,375 62,785,586
2029 6,420,349 1,929,825 4,389,822 28,879,115 18,075,750 59,694,862
2030 6,429,808 1,933,575 4,394,444 28,980,583 18,074,625 59,813,034
2031 6,112,528 - 4,335,213 24,878,043 18,077,375 53,403,159
2032 5,938,019 - 4,313,075 23,039,744 18,077,375 51,368,213
2033 5,728,422 - 4,293,478 20,474,825 18,073,125 48,569,850
2034 5,444,959 - 3,693,750 17,249,069 18,077,750 44,465,528
2035 5,174,469 - 3,190,797 15,843,531 18,074,375 42,283,172
2036 3,593,472 - 2,966,550 14,939,306 18,076,125 39,575,453
2037 2,515,491 - 2,725,675 13,780,781 18,075,875 37,097,822
2038 1,369,378 - 2,141,838 13,740,956 - 17,252,172
2039 - - - 13,761,881 - 13,761,881
2040 - - - 13,776,881 - 13,776,881
2041 - - - 13,779,188 - 13,779,188
2042 - - - 13,779,269 - 13,779,269
2043 - - - 13,778,544 - 13,778,544
2044 - - - 13,772,788 - 13,772,788
2045 - - - 10,404,397 - 10,404,397
2046 - - - 6,541,894 - 6,541,894
2047 - - - 3,544,500 - 3,544,500
164,526,395$ 129,452,829 108,621,454$ 656,432,359 336,047,250$ 1,395,080,287$
Table 1 - Total Outstanding Debt (in millions) as of September 30, 2018
General Obligation Bonds (GOs)Certificates of Obligation (COs)
City of Denton
Total Annual Debt Service (Principal & Interest) - All Debt
Fiscal Year Ending September 30, 2018
6
-
20
40
60
80
100
120
20192020202120222023202420252026202720282029203020312032203320342035203620372038203920402041204220432044204520462047MillionsTotal Annual Debt Service ($)
Revenue Bonds
CO - Revenue Supported
CO - Tax Supported
GO - Revenue Supported
GO - Tax Supported
12%
13%
5%
48%
22%
Total Annual Debt Service (%)
GO - Tax Supported
GO - Revenue Supported
CO - Tax Supported
CO - Revenue Supported
Revenue Bonds
7
FY End General Obligation Bonds Certificates of Obligation
9-30 (GOs)(COs)Total
2019 15,043,965 10,284,850 25,328,814
2020 14,263,450 9,850,681 24,114,131
2021 13,930,960 9,057,981 22,988,941
2022 13,012,842 8,286,669 21,299,511
2023 11,721,321 6,816,394 18,537,714
2024 11,185,337 5,981,794 17,167,130
2025 10,297,714 5,794,044 16,091,757
2026 9,655,171 5,624,706 15,279,877
2027 9,084,052 5,461,350 14,545,402
2028 7,604,690 5,018,344 12,623,034
2029 6,420,349 4,389,822 10,810,171
2030 6,429,808 4,394,444 10,824,251
2031 6,112,528 4,335,213 10,447,741
2032 5,938,019 4,313,075 10,251,094
2033 5,728,422 4,293,478 10,021,900
2034 5,444,959 3,693,750 9,138,709
2035 5,174,469 3,190,797 8,365,266
2036 3,593,472 2,966,550 6,560,022
2037 2,515,491 2,725,675 5,241,166
2038 1,369,378 2,141,838 3,511,216
164,526,395$ 108,621,454$ 273,147,849
City of Denton
Total Annual Debt Service (Principal & Interest) - Tax Supported Debt
Fiscal Year Ending September 30, 2018
8
-
5
10
15
20
25
30
20192020202120222023202420252026202720282029203020312032203320342035203620372038MillionsTax Supported Debt ($)
GO
CO
60%
40%
Tax Supported Debt (%)
GO
CO
9
FY End General Obligation Bonds Certificates of Obligation Revenue
9-30 GOs COs Bonds Total
2019 23,665,908 41,201,958 10,685,000 75,552,866
2020 23,707,969 40,574,794 18,075,500 82,358,264
2021 19,961,411 38,738,082 18,076,750 76,776,243
2022 17,280,317 37,525,925 18,073,125 72,879,366
2023 12,031,201 35,477,406 18,073,625 65,582,232
2024 9,625,569 35,147,882 18,077,000 62,850,451
2025 6,830,129 35,102,607 18,077,125 60,009,861
2026 4,896,300 29,493,632 18,073,500 52,463,432
2027 4,438,525 29,291,703 18,075,875 51,806,103
2028 3,152,100 28,933,078 18,077,375 50,162,553
2029 1,929,825 28,879,115 18,075,750 48,884,690
2030 1,933,575 28,980,583 18,074,625 48,988,783
2031 - 24,878,043 18,077,375 42,955,418
2032 - 23,039,744 18,077,375 41,117,119
2033 - 20,474,825 18,073,125 38,547,950
2034 - 17,249,069 18,077,750 35,326,819
2035 - 15,843,531 18,074,375 33,917,906
2036 - 14,939,306 18,076,125 33,015,431
2037 - 13,780,781 18,075,875 31,856,656
2038 - 13,740,956 - 13,740,956
2039 - 13,761,881 - 13,761,881
2040 - 13,776,881 - 13,776,881
2041 - 13,779,188 - 13,779,188
2042 - 13,779,269 - 13,779,269
2043 - 13,778,544 - 13,778,544
2044 - 13,772,788 - 13,772,788
2045 - 10,404,397 - 10,404,397
2046 - 6,541,894 - 6,541,894
2047 - 3,544,500 - 3,544,500
129,452,829$ 656,432,359$ 336,047,250$ 1,121,932,438$
City of Denton
Total Annual Debt Service (Principal & Interest) - Revenue Supported Debt
Fiscal Year Ending September 30, 2018
10
-
10
20
30
40
50
60
70
80
90
20192020202120222023202420252026202720282029203020312032203320342035203620372038203920402041204220432044204520462047MillionsRevenue Supported ($)
Revenue Bonds
CO
GO
12%
58%
30%
Revenue Supported (%)
GO
CO
Revenue Bonds
11
FY End
9-30 General Airport Water Park Warehouse Total
2019 24,424,215 792,635 62,625 49,339 25,328,814
2020 23,244,875 759,804 60,700 48,752 24,114,131
2021 22,119,582 762,923 58,500 47,936 22,988,941
2022 20,464,289 724,659 61,200 49,364 21,299,512
2023 17,803,225 686,259 - 48,230 18,537,714
2024 16,476,459 690,672 - - 17,167,130
2025 15,467,920 623,838 - - 16,091,757
2026 14,659,965 619,913 - - 15,279,877
2027 13,964,015 581,388 - - 14,545,402
2028 12,039,159 583,875 - - 12,623,034
2029 10,231,990 578,181 - - 10,810,171
2030 10,241,670 582,581 - - 10,824,251
2031 9,866,378 581,363 - - 10,447,741
2032 9,666,609 584,484 - - 10,251,094
2033 9,430,275 591,625 - - 10,021,900
2034 8,683,559 455,150 - - 9,138,709
2035 8,032,388 332,878 - - 8,365,266
2036 6,227,459 332,563 - - 6,560,022
2037 4,909,453 331,713 - - 5,241,166
2038 3,185,616 325,600 - - 3,511,216
261,139,100$ 11,522,102$ 243,025$ 243,621$ 273,147,848$
City of Denton
Total Annual Debt Service (Principal & Interest) - General Government
Fiscal Year Ending September 30, 2018
12
;
-
5
10
15
20
25
30
20192020202120222023202420252026202720282029203020312032203320342035203620372038MillionsGeneral Government ($)
Airport
Warehouse
Water Park
General
0.1%0.1%4.2%
95.6%
General Government (%)
Warehouse
Water Park
Airport
General
13
FY End General Obligation Bonds Certificates of Obligation Revenue
9-30 GOs COs Bonds Total
2019 8,936,950 27,377,620 10,685,000 46,999,570
2020 8,968,588 27,328,364 18,075,500 54,372,452
2021 8,219,550 27,289,126 18,076,750 53,585,426
2022 7,421,175 27,290,706 18,073,125 52,785,006
2023 5,834,175 27,339,188 18,073,625 51,246,988
2024 4,425,900 27,389,714 18,077,000 49,892,614
2025 1,678,250 27,435,989 18,077,125 47,191,364
2026 1,679,500 21,966,126 18,073,500 41,719,126
2027 1,355,250 22,004,106 18,075,875 41,435,231
2028 841,500 22,026,975 18,077,375 40,945,850
2029 - 22,022,988 18,075,750 40,098,738
2030 - 22,092,512 18,074,625 40,167,137
2031 - 19,541,081 18,077,375 37,618,456
2032 - 17,966,419 18,077,375 36,043,794
2033 - 16,381,572 18,073,125 34,454,697
2034 - 13,649,800 18,077,750 31,727,550
2035 - 13,661,981 18,074,375 31,736,356
2036 - 13,687,956 18,076,125 31,764,081
2037 - 13,714,481 18,075,875 31,790,356
2038 - 13,740,956 - 13,740,956
2039 - 13,761,881 - 13,761,881
2040 - 13,776,881 - 13,776,881
2041 - 13,779,188 - 13,779,188
2042 - 13,779,269 - 13,779,269
2043 - 13,778,544 - 13,778,544
2044 - 13,772,788 - 13,772,788
2045 - 10,404,397 - 10,404,397
2046 - 6,541,894 - 6,541,894
2047 - 3,544,500 - 3,544,500
49,360,838$ 527,046,999$ 336,047,250$ 912,455,087$
City of Denton
Total Annual Debt Service (Principal & Interest) - Electric
Fiscal Year Ending September 30, 2018
14
-
10
20
30
40
50
60
20192020202120222023202420252026202720282029203020312032203320342035203620372038203920402041204220432044204520462047MillionsElectric ($)
Revenue Bonds
CO
GO
5%
58%
37%
Electric (%)
GO
CO
Revenue Bonds
15
FY End General Obligation Bonds Certificates of Obligation Revenue
9-30 GOs COs Bonds Total
2019 9,972,081 2,728,114 - 12,700,195
2020 9,977,800 2,711,006 - 12,688,806
2021 8,167,800 2,702,756 - 10,870,556
2022 6,980,175 2,713,656 - 9,693,831
2023 4,703,800 2,713,631 - 7,417,431
2024 4,779,775 2,719,731 - 7,499,506
2025 4,793,250 2,715,206 - 7,508,456
2026 2,917,375 2,734,281 - 5,651,656
2027 2,917,875 2,741,290 - 5,659,165
2028 2,254,500 2,745,512 - 5,000,012
2029 1,929,825 2,733,300 - 4,663,125
2030 1,933,575 2,750,606 - 4,684,181
2031 - 1,763,506 - 1,763,506
2032 - 1,766,075 - 1,766,075
2033 - 1,327,238 - 1,327,238
2034 - 1,324,113 - 1,324,113
2035 - 700,700 - 700,700
2036 - 492,275 - 492,275
61,327,831$ 40,082,993$ -$ 101,410,824$
City of Denton
Total Annual Debt Service (Principal & Interest) - Water
Fiscal Year Ending September 30, 2018
16
-
2
4
6
8
10
12
14
201920202021202220232024202520262027202820292030203120322033203420352036MillionsWater ($)
CO
GO
60%
40%
Water (%)
GO
CO
17
FY End General Obligation Bonds Certificates of Obligation Revenue
9-30 GOs COs Bonds Total
2019 4,044,644 2,813,423 - 6,858,067
2020 4,053,113 2,794,412 - 6,847,525
2021 2,875,925 2,476,137 - 5,352,062
2022 2,250,875 2,375,787 - 4,626,662
2023 1,071,125 2,370,787 - 3,441,912
2024 - 2,367,612 - 2,367,612
2025 - 2,364,912 - 2,364,912
2026 - 2,370,862 - 2,370,862
2027 - 2,370,062 - 2,370,062
2028 - 2,378,012 - 2,378,012
2029 - 2,336,512 - 2,336,512
2030 - 2,346,259 - 2,346,259
2031 - 2,015,312 - 2,015,312
2032 - 2,012,694 - 2,012,694
2033 - 1,509,709 - 1,509,709
2034 - 1,146,825 - 1,146,825
2035 - 694,050 - 694,050
2036 - 223,300 - 223,300
14,295,681$ 36,966,668$ -$ 51,262,349$
City of Denton
Total Annual Debt Service (Principal & Interest) - Wastewater
Fiscal Year Ending September 30, 2018
18
-
1
2
3
4
5
6
7
201920202021202220232024202520262027202820292030203120322033203420352036MillionsWastewater ($)
CO
GO
28%
72%
Wastewater (%)
GO
CO
19
FY End General Obligation Bonds Certificates of Obligation Revenue
9-30 GOs COs Bonds Total
2019 712,233 8,282,801 - 8,995,034
2020 708,469 7,741,013 - 8,449,482
2021 698,136 6,270,063 - 6,968,199
2022 628,092 5,145,776 - 5,773,867
2023 422,101 3,053,801 - 3,475,902
2024 419,894 2,670,826 - 3,090,719
2025 358,629 2,586,501 - 2,945,129
2026 299,425 2,422,363 - 2,721,788
2027 165,400 2,176,244 - 2,341,644
2028 56,100 1,782,579 - 1,838,679
2029 - 1,786,316 - 1,786,316
2030 - 1,791,207 - 1,791,207
2031 - 1,558,144 - 1,558,144
2032 - 1,294,556 - 1,294,556
2033 - 1,256,306 - 1,256,306
2034 - 1,128,331 - 1,128,331
2035 - 786,800 - 786,800
2036 - 535,775 - 535,775
2037 - 66,300 - 66,300
4,468,479$ 52,335,700$ -$ 56,804,179$
City of Denton
Total Annual Debt Service (Principal & Interest) - Solid Waste
Fiscal Year Ending September 30, 2018
20
-
1
2
3
4
5
6
7
8
9
2019202020212022202320242025202620272028202920302031203220332034203520362037MillionsSolid Waste ($)
CO
GO
8%
92%
Solid Waste (%)
GO
CO
21
HOUSE BILL 1378 SECTION
22
TOTAL TAX-SUPPORTED AND REVENUE DEBT HB 1378 Calculation (1)City Calculation (2)
Total Authorized Debt Obligations 1,016,170,000$ 1,016,170,000$
Total Principal Of All Outstanding Debt Obligations 982,135,000$ 982,135,000$
Combined Principal And Interest Required To Pay All Outstanding Debt Obligations On Time And
In Full 1,395,080,287$ 1,395,080,287$
TOTAL DEBT SECURED BY AD VALOREM TAXATION
Total Authorized Debt Obligations Secured By Ad Valorem Taxation 1,016,170,000$ 242,882,936$
Total Principal Of All Outstanding Debt Obligations Secured By Ad Valorem Taxation 982,135,000$ 208,847,936$
Combined Principal And Interest Required To Pay All Outstanding Debt Obligations Secured By Ad
Valorem Taxation On Time And In Full 1,395,080,287$ 273,147,848$
PER CAPITA TOTAL DEBT SECURED BY AD VALOREM TAXATION
Total Authorized Debt Obligations Secured By Ad Valorem Taxation Expressed As A Per Capita
Amount 7,995$ 1,911$
Total Principal Of Outstanding Debt Obligations Secured By Ad Valorem Taxation As A Per Capita
Amount 7,728$ 1,643$
+
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 10,977$ 2,149$
Population Total Used To Calculate Per Capita Figures 127,093 127,093
Source And Year of Data Used To Calculate Per Capita Figures City of Denton Planning
Department, 2018
City of Denton Planning
Department, 2018
City of Denton
Summary of Debt Obligations
Fiscal Year Ending September 30, 2018
(1) 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.
(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.
23
Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated
Obligations Issued Oustanding Principal & Interest Date Ad Valorem Taxes Received Spent Unspent Purpose Moody's S&P Fitch
Certificates of Obligation,
Series 2004
14,000,000.00$ -$ -$ February 15, 2024 No 13,928,018.45$ 13,928,018.45$ -$ Proceeds from the sale oftheCertificateswill be used topaythecostsof(a)
road and street improvements,including FM 2181,Spencer Road,State
School Road and miscellaneous paving projects;(b)construction and
equipping of a public safety training facility on Bonnie Brae Road;(c)
improvement and equipping of the Emily Fowler Library;(d)improvement
and equipping of the Civic Center;(e)improvements and equipment at the
Denton Municipal Airport;(f)expansion and equipping of the Denton City
Jail;(g)computer and technology equipment and upgrades for the City's
information technology and communication systems;and (h)improvements
to the City's solid waste disposal system and acquisition of related
equipment;and also for the purpose of paying allor 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.
Aa2 AA+Not Rated
Certificates of Obligation,
Series 2005
7,145,000.00$ -$ -$ February 15, 2025 No 7,082,370.20$ 7,082,370.20$ -$ Proceeds from the sale oftheCertificateswill be used topaythecostsof(a)
road and street improvements;(b)construction and equipping of a new
westside fire station No.7;(c)purchase of vehicles for use by the City's
public safety departments;and (d)improvements to the City's solid waste
disposal systemand acquisitionofrelated equipment,and 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 the Certificates.
Aa2 AA+Not Rated
Certificates of Obligation,
Series 2006
12,665,000.00$ -$ -$ February 15, 2026 No 12,735,096.41$ 12,735,096.41$ -$ Proceeds from the sale of the Certificates will be used for the purchase,
constructionand acquisitionofcertain realand personal property,to wit:(a)
road,street and parkingimprovements;(b)construction andequippingof fire
station No.7;(c)acquistion and installation of replacement heating venting
and air condition equipment for City buildings;(d)improvements to the
City's solid waste disposal system and acquisition of related equipment;(e)
construction of a crematorium for the City's animal control department;(f)
improvements to the municipal airport;(g)acquistion of vehicles and
equipmentfor the City's motor pool;(h)construction ofamulti-modal transit
station and the acquisition of interests in land in connection with the
constuction of such station;and also for the purpose of paying all or a
portion of the City's contractual obligations for professional services,
includingengineers,architects,attorneys,map makers,auditors,and financial
advisors, in connection with the Certificates.
Aa2 AA+Not Rated
Certificates of Obligation,
Series 2007A
7,065,000.00$ -$ -$ February 15, 2017 Yes 7,131,492.75$ 4,510,152.35$ 2,621,340.40$ Proceeds fromthe sale of the Certificates willbe used for improvements to
the City's drainage and storm sewer systems and acquisition of related
equipment;and also for the purpose of paying allor 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 Certificates.
Aa2 AA+Not Rated
City of Denton
Individual Debt Obligations
Fiscal Year Ending September 30, 2018
Current Credit Rating
24
Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated
Obligations Issued Oustanding Principal & Interest Date Ad Valorem Taxes Received Spent Unspent Purpose Moody's S&P Fitch
City of Denton
Individual Debt Obligations
Fiscal Year Ending September 30, 2018
Current Credit Rating
Certificates of Obligation,
Series 2008
10,685,000.00$ -$ -$ February 15, 2018 Yes 10,746,326.08$ 10,712,325.52$ 34,000.56$ Proceeds from the sale of the Certificates will be used for (a)acquisition of
land for,and design,construction and equipping of,a public safety radio
antenna;(b)renovations and improvements to,and equipping of,existing
municipal facilities,including City Hall East and City libraries;(c)
improvements to the City's solid waste disposal system and acquisition of
related equipment;(d)acquisition of land for,and design,construction and
equipping of,animalshelter;(e)acquisitionof vehiclesandequipment forthe
City's motor pool;and (f)acquisition of land for and improvements to
municipal parks;and also for the purpose of paying all or a portion of the
City's contractual obligations for professional services,inlcluding engineers,
architects,attorneys,map makers,auditors and financial advisors,in
connection with the preparation of the City's master plan for downtown
improvements, and with said Certficates of Obligation.
Aa2 AA+Not Rated
Certificates of Obligation,
Series 2012
44,675,000.00$ 28,730,000.00$ 38,098,509.46$ February 15, 2032 Yes 48,950,741.64$ 48,950,741.64$ -$ 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,theCity'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)
constructingandimproving streets,including installation oftraffic signals;(e)
acquisition of equipment for,and acquiring,constructing,installing and
equipping additions,extensions,renovations and improvements to,theCity's
waterworks and sewer system;(f)acquisition of equipment for,and
acquiring,constructing,installing and equipping additions,extensions,
renovations and improvementsto,the City's electric light and power system;
and also for the purpose of paying all or a portion ofthe 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
Not Rated AA+AA+
25
Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated
Obligations Issued Oustanding Principal & Interest Date Ad Valorem Taxes Received Spent Unspent Purpose Moody's S&P Fitch
City of Denton
Individual Debt Obligations
Fiscal Year Ending September 30, 2018
Current Credit Rating
Certificates of Obligation,
Series 2013
63,520,000.00$ 46,230,000.00$ 58,907,025.00$ February 15, 2033 Yes 67,807,600.00$ 66,833,605.25$ 973,994.75$ 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,theCity'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 ofreplacement 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 andimproving streets,including installation of
traffic signals;(e)acquisition ofland for the municipal airport;(t)acquiring,
constructing,installing and equipping a 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 improvementsto,the City's electric light and power system;
and also for the purpose of paying all or a portion ofthe City's contractual
obligations for professional services,including engineers,architects,
attomeys,map makers,auditors,and financial advisors,in connection with
said projects and said Certificates.
Not Rated AA+AA+
26
Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated
Obligations Issued Oustanding Principal & Interest Date Ad Valorem Taxes Received Spent Unspent Purpose Moody's S&P Fitch
City of Denton
Individual Debt Obligations
Fiscal Year Ending September 30, 2018
Current Credit Rating
Certificates of Obligation,
Series 2014
89,180,000.00$ 77,395,000.00$ 117,508,256.25$ February 15, 2044 Yes 93,781,044.89$ 85,788,277.09$ 7,992,767.80$ Proceedsofthe saleofthe Certificates willbe used (a)acquisitionofvehicles
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)acquisitionofvehicles and
equipment for the fire,police,building inspections,animal services,streets
and traffic control,facilities management,and parks and recreation
departments;(d)constructing andimproving streets,including installation of
traffic signals;(e)acquiring,constructing,installing and equipping hangars
for the municipal airport;(f)acquiring,constructing,installing andequipping
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 equippingadditions,extensions,renovations and improvements
to,theCity'swaterworksand sewer system;(i)acquisition of equipment for,
and acquiring,constructing,installing and equipping additions,extensions,
renovations and improvementsto,the City's electric light and power system;
and also for the purpose of paying all or a portion ofthe 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.
Not Rated AA+AA+
27
Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated
Obligations Issued Oustanding Principal & Interest Date Ad Valorem Taxes Received Spent Unspent Purpose Moody's S&P Fitch
City of Denton
Individual Debt Obligations
Fiscal Year Ending September 30, 2018
Current Credit Rating
Certificates of Obligation,
Series 2015
93,015,000.00$ 82,690,000.00$ 130,692,442.00$ February 15, 2045 Yes 97,983,335.00$ 91,801,511.70$ 6,181,823.30$ Proceedsofthe saleofthe Certificates willbe used (a)acquisitionofvehicles
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,oofing 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,onstructing,installing and
equipping additions,extensions,enovations 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 tation,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,theCity's
waterworks and sewer system;and (i)acquisition of equipment for,and
acquiring,constructing,installing and equipping additions,extensions,
renovations and improvementsto,the City's electric light and power system,
and also for the purpose of paying all or a portion ofthe 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.
Not Rated AA+AA+
General Obligation
Refunding and
Improvement Bonds, Series
2015
37,640,000.00$ 33,605,000.00$ 43,235,795.00$ February 15, 2035 Yes 23,013,424.58$ 14,703,739.65$ 8,309,684.93$ 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
andflood control improvements,and park system improvements,and (iii)to
pay the costs associated with the issuance of the Bonds.
Not Rated AA+AA+
28
Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated
Obligations Issued Oustanding Principal & Interest Date Ad Valorem Taxes Received Spent Unspent Purpose Moody's S&P Fitch
City of Denton
Individual Debt Obligations
Fiscal Year Ending September 30, 2018
Current Credit Rating
Certificates of Obligation,
Series 2016
83,305,000.00$ 77,345,000.00$ 118,231,390.89$ February 15, 2046 Yes 92,340,554.08$ 77,111,960.48$ 15,228,593.60$ 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,theCity'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 ofreplacement heating,venting and
air conditioning equipment,roofing and flooring;(c)acquisition of vehicles
and equipment for the fire,police,building inspections,community
improvement services ,animalservices,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,utilityline 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
improvementsto,theCity's waterworks and sewersystem;and (i)acquisition
of equipment for,and acquiring,constructing,installing and equipping
additions,extensions,renovations and improvements to,the City's electric
light andpowersystem,and also for the purpose ofpaying all ora 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.
Not Rated AA+AA+
General Obligation
Refunding and
Improvement Bonds, Series
2016
28,930,000.00$ 27,430,000.00$ 35,362,975.00$ February 15, 2036 Yes 16,915,296.52$ 6,365,664.97$ 10,549,631.55$ Proceeds of the Bonds are expected to be used (i)to refimd certain
outstanding obligations of the City for debt service savings;(ii)for street
improvements,public safety facilities improvements,stormwater drainage
andfloodcontrolimprovements,andpark system improvements ,and (iii)to
pay the costs associated with the issuance of the Bonds.
Not Rated AA+AA+
Utility System Revenue
Bonds, Series 2017
214,890,000.00$ 214,890,000.00$ 336,047,250.00$ December 1, 2037 No 246,164,298.03$ 217,810,705.61$ 28,353,592.42$ Proceeds from the sale of the Series 2017 Bonds willbe 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.
Not Rated AA-A+
29
Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated
Obligations Issued Oustanding Principal & Interest Date Ad Valorem Taxes Received Spent Unspent Purpose Moody's S&P Fitch
City of Denton
Individual Debt Obligations
Fiscal Year Ending September 30, 2018
Current Credit Rating
Certificates of Obligation,
Series 2017
90,800,000.00$ 86,860,000.00$ 135,898,850.00$ February 15, 2047 Yes 98,365,003.11$ 43,765,106.65$ 54,599,896.46$ 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,theCity'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,utilitylinerelocations 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 andpowersystem;and also for the purpose ofpaying all ora portion of
the City's contractual obligations for professional services,including
engineers,architects,attorneys,map makers,auditors,and financialadvisors,
in connection with said projects and said Certificates.
Not Rated AA+AA+
General Obligation
Refunding and
Improvement Bonds, Series
2017
29,105,000.00$ 24,975,000.00$ 31,269,884.59$ February 15, 2037 Yes 17,294,870.71$ 473,355.65$ 16,821,515.06$ 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.
Not Rated AA+AA+
General Obligation
Refunding Bonds, Series
2018
19,235,000.00$ 19,235,000.00$ 27,407,747.52$ February 15, 2038 Yes 19,871,127.54$ -$ 19,871,127.54$ 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.
Not Rated AA+AA+
Certificates of Obligation,
Series 2018
9,555,000.00$ 9,555,000.00$ 12,351,476.95$ February 15, 2038 Yes 10,020,369.57$ 3,588,261.08$ 6,432,108.49$ 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").
Not Rated AA+AA+
30
Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated
Obligations Issued Oustanding Principal & Interest Date Ad Valorem Taxes Received Spent Unspent Purpose Moody's S&P Fitch
City of Denton
Individual Debt Obligations
Fiscal Year Ending September 30, 2018
Current Credit Rating
Certificates of Obligation,
Series 2018A
29,545,000.00$ 29,545,000.00$ 42,107,314.27$ September 30, 2038 Yes 31,802,096.74$ 1,410,400.07$ 30,391,696.67$ 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 ofland 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;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.
Not Rated AA+AA+
TOTAL 884,955,000.00$ 758,485,000.00$ 1,127,118,916.93$ 915,933,066.30$ 707,571,292.77$ 208,361,773.53$
31
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.
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.
32
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.
33