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2020-022 Debt SummaryDate: March 6, 2020 Report No. 2020-022       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, 2019. 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. On February 18, 2020 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 public on Friday, March 13, 2020. 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, 2019 STAFF CONTACT: David Gaines, Director of Finance (940)-349-8260 David.Gaines@cityofdenton.com REQUESTOR: Regular report Date: March 6, 2020 Report No. 2020-022       PARTICIPATING DEPARTMENTS: Finance STAFF TIME TO COMPLETE REPORT: The estimated amount of cumulative staff time to complete the report is 6 hours. City of Denton Debt Summary Report Fiscal Year Ending September 30, 2019 Contact: City of Denton Finance Department Attn: David Gaines – Director of Finance 215 E. McKinney St. Denton, Texas 76201 Email: DavidGaines@cityofdenton.com Phone: 940-349-8260 Fax: 940-349-7206 Website: www.cityofdenton.com Published: March 6, 2020 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………………………………………………………………………….……..…30 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 Aa1 AA+ AA+ Revenue Bond Debt2 Not Rated AA- A+ 1Moody’s upgraded General Obligation Debt in June 2019. Moody’s has not rated a new a revenue bond debt issue since 2008, although surveillance ratings remain unchanged. All revenue bond debt previously rated by Moody’s has 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 2019. 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 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, 2019, 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, 2019 is shown in Table 1 on page 6 of this report. CITY DEBT SECTION Principal Interest Total GOs 254.19$ 55.90$ 310.09$ COs 498.45$ 222.08$ 720.53$ Revenue Bonds 214.89$ 110.47$ 325.36$ Total 967.53$ 388.45$ 1,355.98$ FY End Revenue 9-30 Tax Supported Revenue Supported Tax Supported Revenue Supported Bonds Total 2020 15,504,188$ 28,653,464$ 11,210,244$ 36,444,172$ 18,075,500$ 109,887,567$ 2021 15,167,335 24,906,686 10,424,881 34,609,794 18,076,750 103,185,446 2022 14,257,092 22,245,367 9,645,494 33,379,056 18,073,125 97,600,134 2023 12,964,271 17,038,151 8,176,244 31,288,681 18,073,625 87,540,971 2024 12,422,512 14,676,694 7,340,594 30,912,482 18,077,000 83,429,281 2025 11,539,139 11,934,629 6,212,044 30,808,557 18,077,125 78,571,493 2026 10,898,846 4,896,300 6,048,206 30,693,907 18,073,500 70,610,759 2027 10,323,102 4,438,525 5,884,475 30,491,853 18,075,875 69,213,830 2028 8,842,240 3,152,100 5,435,469 30,136,228 18,077,375 65,643,411 2029 7,664,149 1,929,825 4,810,197 30,083,265 18,075,750 62,563,187 2030 7,667,158 1,933,575 4,653,269 30,182,283 18,074,625 62,510,909 2031 7,356,453 - 4,593,113 26,079,468 18,077,375 56,106,409 2032 7,177,619 - 4,569,900 24,245,069 18,077,375 54,069,963 2033 6,967,872 - 4,549,078 21,678,225 18,073,125 51,268,300 2034 6,683,359 - 3,952,900 18,454,719 18,077,750 47,168,728 2035 6,415,844 - 3,448,272 17,040,681 18,074,375 44,979,172 2036 4,831,847 - 3,222,200 16,142,131 18,076,125 42,272,303 2037 3,749,966 - 2,984,275 14,983,306 18,075,875 39,793,422 2038 2,613,828 - 2,398,163 14,942,281 - 19,954,272 2039 1,238,300 - 258,825 14,961,106 - 16,458,231 2040 - - - 14,155,556 - 14,155,556 2041 - - - 14,159,163 - 14,159,163 2042 - - - 14,155,319 - 14,155,319 2043 - - - 14,155,444 - 14,155,444 2044 - - - 14,150,238 - 14,150,238 2045 - - - 10,782,097 - 10,782,097 2046 - - - 6,919,544 - 6,919,544 2047 - - - 3,921,800 - 3,921,800 2048 - - - 376,650 - 376,650 2049 - - - 380,625 - 380,625 174,285,118$ 135,805,315$ 109,817,841$ 610,713,698$ 325,362,250$ 1,355,984,223$ Table 1 - Total Outstanding Debt (in millions) as of September 30, 2019 General Obligation Bonds (GOs)Certificates of Obligation (COs) City of Denton Total Annual Debt Service (Principal & Interest) - All Debt Fiscal Year Ending September 30, 2019 Aa1 $- $20 $40 $60 $80 $100 $120 202020212022202320242025202620272028202920302031203220332034203520362037203820392040204120422043204420452046204720482049MillionsTotal Annual Debt Service ($) 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 FY End General Obligation Bonds Certificates of Obligation 9-30 (GOs)(COs)Total 2020 15,504,188$ 11,210,244$ 26,714,431$ 2021 15,167,335 10,424,881 25,592,216 2022 14,257,092 9,645,494 23,902,586 2023 12,964,271 8,176,244 21,140,514 2024 12,422,512 7,340,594 19,763,105 2025 11,539,139 6,212,044 17,751,182 2026 10,898,846 6,048,206 16,947,052 2027 10,323,102 5,884,475 16,207,577 2028 8,842,240 5,435,469 14,277,709 2029 7,664,149 4,810,197 12,474,346 2030 7,667,158 4,653,269 12,320,426 2031 7,356,453 4,593,113 11,949,566 2032 7,177,619 4,569,900 11,747,519 2033 6,967,872 4,549,078 11,516,950 2034 6,683,359 3,952,900 10,636,259 2035 6,415,844 3,448,272 9,864,116 2036 4,831,847 3,222,200 8,054,047 2037 3,749,966 2,984,275 6,734,241 2038 2,613,828 2,398,163 5,011,991 2039 1,238,300 258,825 1,497,125 174,285,118$ 109,817,841$ 284,102,959$ City of Denton Total Annual Debt Service (Principal & Interest) - Tax Supported Debt Fiscal Year Ending September 30, 2019 Aa1 $- $5 $10 $15 $20 $25 $30 20202021202220232024202520262027202820292030203120322033203420352036203720382039MillionsTax Supported Debt ($) GO CO 61% 39% Tax Supported Debt (%) GO CO FY End General Obligation Bonds Certificates of Obligation Revenue 9-30 GOs COs Bonds Total 2020 28,653,464$ 36,444,172$ 18,075,500$ 83,173,136$ 2021 24,906,686 34,609,794 18,076,750 77,593,230 2022 22,245,367 33,379,056 18,073,125 73,697,547 2023 17,038,151 31,288,681 18,073,625 66,400,457 2024 14,676,694 30,912,482 18,077,000 63,666,176 2025 11,934,629 30,808,557 18,077,125 60,820,311 2026 4,896,300 30,693,907 18,073,500 53,663,707 2027 4,438,525 30,491,853 18,075,875 53,006,253 2028 3,152,100 30,136,228 18,077,375 51,365,703 2029 1,929,825 30,083,265 18,075,750 50,088,840 2030 1,933,575 30,182,283 18,074,625 50,190,483 2031 - 26,079,468 18,077,375 44,156,843 2032 - 24,245,069 18,077,375 42,322,444 2033 - 21,678,225 18,073,125 39,751,350 2034 - 18,454,719 18,077,750 36,532,469 2035 - 17,040,681 18,074,375 35,115,056 2036 - 16,142,131 18,076,125 34,218,256 2037 - 14,983,306 18,075,875 33,059,181 2038 - 14,942,281 - 14,942,281 2039 - 14,961,106 - 14,961,106 2040 - 14,155,556 - 14,155,556 2041 - 14,159,163 - 14,159,163 2042 - 14,155,319 - 14,155,319 2043 - 14,155,444 - 14,155,444 2044 - 14,150,238 - 14,150,238 2045 - 10,782,097 - 10,782,097 2046 - 6,919,544 - 6,919,544 2047 - 3,921,800 - 3,921,800 2048 - 376,650 - 376,650 2049 - 380,625 - 380,625 135,805,315$ 610,713,698$ 325,362,250$ 1,071,881,263$ City of Denton Total Annual Debt Service (Principal & Interest) - Revenue Supported Debt Fiscal Year Ending September 30, 2019 Aa1 $- $10 $20 $30 $40 $50 $60 $70 $80 $90 202020212022202320242025202620272028202920302031203220332034203520362037203820392040204120422043204420452046204720482049MillionsRevenue Supported ($) Revenue Bonds CO GO 13% 57% 30% Revenue Supported (%) GO CO Revenue Bonds FY End 9-30 General Airport Water Park Warehouse Total 2020 25,674,413$ 759,804$ 231,463$ 48,752$ 26,714,431$ 2021 24,552,272 762,923 229,084 47,936 25,592,216 2022 22,896,536 724,659 232,027 49,364 23,902,586 2023 20,235,483 686,259 170,542 48,230 21,140,514 2024 18,901,783 690,672 170,650 - 19,763,105 2025 16,956,371 623,838 170,974 - 17,751,182 2026 16,156,713 619,913 170,426 - 16,947,052 2027 15,455,750 581,388 170,440 - 16,207,577 2028 13,523,104 583,875 170,730 - 14,277,709 2029 11,725,345 578,181 170,820 - 12,474,346 2030 11,567,188 582,581 170,657 - 12,320,426 2031 11,197,845 581,363 170,358 - 11,949,566 2032 10,992,380 584,484 170,655 - 11,747,519 2033 10,754,534 591,625 170,791 - 11,516,950 2034 10,010,244 455,150 170,866 - 10,636,259 2035 9,360,461 332,878 170,776 - 9,864,116 2036 7,582,462 332,563 139,022 - 8,054,047 2037 6,402,528 331,713 - - 6,734,241 2038 4,686,391 325,600 - - 5,011,991 2039 1,497,125 - - - 1,497,125 270,128,928$ 10,729,467$ 3,050,282$ 194,282$ 284,102,959$ City of Denton Total Annual Debt Service (Principal & Interest) - General Government Fiscal Year Ending September 30, 2019 ; $- $5 $10 $15 $20 $25 $30 20202021202220232024202520262027202820292030203120322033203420352036203720382039MillionsGeneral Government ($) Airport Warehouse Water Park General 0.1%1.1%3.8% 95.1% General Government (%) Warehouse Water Park Airport General FY End General Obligation Bonds Certificates of Obligation Revenue 9-30 GOs COs Bonds Total 2020 13,914,082$ 22,376,476$ 18,075,500$ 54,366,058$ 2021 13,164,825 22,336,364 18,076,750 53,577,939 2022 12,386,225 22,322,263 18,073,125 52,781,613 2023 10,841,125 22,327,163 18,073,625 51,241,913 2024 9,477,025 22,332,064 18,077,000 49,886,089 2025 6,782,750 22,321,114 18,077,125 47,180,989 2026 1,679,500 22,345,451 18,073,500 42,098,451 2027 1,355,250 22,384,431 18,075,875 41,815,556 2028 841,500 22,407,800 18,077,375 41,326,675 2029 - 22,403,813 18,075,750 40,479,563 2030 - 22,470,062 18,074,625 40,544,687 2031 - 19,917,256 18,077,375 37,994,631 2032 - 18,345,994 18,077,375 36,423,369 2033 - 16,759,322 18,073,125 34,832,447 2034 - 14,030,500 18,077,750 32,108,250 2035 - 14,040,406 18,074,375 32,114,781 2036 - 14,068,881 18,076,125 32,145,006 2037 - 14,092,681 18,075,875 32,168,556 2038 - 14,121,206 - 14,121,206 2039 - 14,138,956 - 14,138,956 2040 - 14,155,556 - 14,155,556 2041 - 14,159,163 - 14,159,163 2042 - 14,155,319 - 14,155,319 2043 - 14,155,444 - 14,155,444 2044 - 14,150,238 - 14,150,238 2045 - 10,782,097 - 10,782,097 2046 - 6,919,544 - 6,919,544 2047 - 3,921,800 - 3,921,800 2048 - 376,650 - 376,650 2049 - 380,625 - 380,625 70,442,282$ 478,698,635$ 325,362,250$ 874,503,167$ City of Denton Total Annual Debt Service (Principal & Interest) - Electric Fiscal Year Ending September 30, 2019 Aa1 $- $10 $20 $30 $40 $50 $60 202020212022202320242025202620272028202920302031203220332034203520362037203820392040204120422043204420452046204720482049MillionsElectric ($) Revenue Bonds CO GO 8% 55% 37% Electric (%) GO CO Revenue Bonds FY End General Obligation Bonds Certificates of Obligation Revenue 9-30 GOs COs Bonds Total 2020 9,977,800$ 2,901,220$ - 12,879,020$ 2021 8,167,800 2,896,406 - 11,064,206 2022 6,980,175 2,904,306 - 9,884,481 2023 4,703,800 2,906,206 - 7,610,006 2024 4,779,775 2,913,531 - 7,693,306 2025 4,793,250 2,908,931 - 7,702,181 2026 2,917,375 2,927,131 - 5,844,506 2027 2,917,875 2,933,015 - 5,850,890 2028 2,254,500 2,935,862 - 5,190,362 2029 1,929,825 2,926,900 - 4,856,725 2030 1,933,575 2,943,531 - 4,877,106 2031 - 1,957,006 - 1,957,006 2032 - 1,960,000 - 1,960,000 2033 - 1,521,438 - 1,521,438 2034 - 1,518,438 - 1,518,438 2035 - 890,075 - 890,075 2036 - 686,550 - 686,550 2037 193,950 193,950 2038 193,475 193,475 2039 192,850 192,850 51,355,750$ 41,210,818$ -$ 92,566,568$ City of Denton Total Annual Debt Service (Principal & Interest) - Water Fiscal Year Ending September 30, 2019 Aa1 $- $2 $4 $6 $8 $10 $12 $14 20202021202220232024202520262027202820292030203120322033203420352036203720382039MillionsWater ($) CO GO 55% 45% Water (%) GO CO FY End General Obligation Bonds Certificates of Obligation Revenue 9-30 GOs COs Bonds Total 2020 4,053,113$ 3,425,463$ - 7,478,576$ 2021 2,875,925 3,106,962 - 5,982,887 2022 2,250,875 3,006,712 - 5,257,587 2023 1,071,125 3,001,512 - 4,072,637 2024 - 2,996,062 - 2,996,062 2025 - 2,992,012 - 2,992,012 2026 - 2,998,962 - 2,998,962 2027 - 2,998,162 - 2,998,162 2028 - 3,009,987 - 3,009,987 2029 - 2,966,237 - 2,966,237 2030 - 2,977,484 - 2,977,484 2031 - 2,647,062 - 2,647,062 2032 - 2,644,519 - 2,644,519 2033 - 2,141,159 - 2,141,159 2034 - 1,777,450 - 1,777,450 2035 - 1,323,400 - 1,323,400 2036 - 850,925 - 850,925 2037 - 630,375 - 630,375 2038 - 627,600 - 627,600 2039 - 629,300 - 629,300 10,251,038$ 46,751,346$ -$ 57,002,383$ City of Denton Total Annual Debt Service (Principal & Interest) - Wastewater Fiscal Year Ending September 30, 2019 Aa1 $- $1 $2 $3 $4 $5 $6 $7 $8 20202021202220232024202520262027202820292030203120322033203420352036203720382039MillionsWastewater ($) CO GO 18% 82% Wastewater (%) GO CO FY End General Obligation Bonds Certificates of Obligation Revenue 9-30 GOs COs Bonds Total 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 3,756,246$ 44,052,900$ -$ 47,809,145$ City of Denton Total Annual Debt Service (Principal & Interest) - Solid Waste Fiscal Year Ending September 30, 2019 Aa1 $- $1 $2 $3 $4 $5 $6 $7 $8 $9 202020212022202320242025202620272028202920302031203220332034203520362037MillionsSolid Waste ($) CO GO 8% 92% Solid Waste (%) GO CO HOUSE BILL 1378 SECTION TOTAL TAX-SUPPORTED AND REVENUE DEBT HB 1378 Calculation (1)City Calculation (2) Total Authorized Debt Obligations 982,195,000$ 982,195,000$ Total Principal Of All Outstanding Debt Obligations 967,530,000$ 967,530,000$ Combined Principal And Interest Required To Pay All Outstanding Debt Obligations On Time And In Full 1,355,984,223$ 1,355,984,223$ TOTAL DEBT SECURED BY AD VALOREM TAXATION Total Authorized Debt Obligations Secured By Ad Valorem Taxation 982,195,000$ 233,732,956$ Total Principal Of All Outstanding Debt Obligations Secured By Ad Valorem Taxation 967,530,000$ 219,067,956$ Combined Principal And Interest Required To Pay All Outstanding Debt Obligations Secured By Ad Valorem Taxation On Time And In Full 1,355,984,223$ 284,102,959$ PER CAPITA TOTAL DEBT SECURED BY AD VALOREM TAXATION Total Authorized Debt Obligations Secured By Ad Valorem Taxation Expressed As A Per Capita Amount 7,173$ 1,707$ Total Principal Of Outstanding Debt Obligations Secured By Ad Valorem Taxation As A Per Capita Amount 7,066$ 1,600$ + 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 9,903$ 2,075$ Population Total Used To Calculate Per Capita Figures 136,927 136,927 Source And Year of Data Used To Calculate Per Capita Figures City of Denton Planning Department, 2019 City of Denton Planning Department, 2019 City of Denton Summary of Debt Obligations Fiscal Year Ending September 30, 2019 (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. Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated Obligations Issued Outstanding Principal & Interest Date Ad Valorem Taxes Received Spent Unspent Purpose Moody's S&P Fitch Certificates of Obligation, Series 2007A 7,065,000.00$ -$ -$ February 15, 2017 Yes 7,131,492.75$ 6,697,794.39$ 433,698.36$ 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 General Obligations Bonds, Series 2008 7,300,000.00$ -$ -$ February 15, 2018 Yes 7,400,580.31$ 7,389,414.79$ 11,165.52$ Proceeds from the sale of the Bonds will be used (a)for various street improvements,senior center improvements and park land acquisitions and improvements, and (b) to pay the costs of issuing the Bonds. Aa2 AA+Not Rated Certificates of Obligation, Series 2008 10,685,000.00$ -$ -$ February 15, 2018 Yes 10,746,326.08$ 10,746,326.08$ -$ 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 City of Denton Individual Debt Obligations Fiscal Year Ending September 30, 2019 Current Credit Rating Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated Obligations Issued Outstanding 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, 2019 Current Credit Rating Certificates of Obligation, Series 2013 63,520,000.00$ 43,505,000.00$ 54,547,950.31$ February 15, 2033 Yes 67,807,600.00$ 67,807,600.00$ -$ 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+ Certificates of Obligation, Series 2014 89,180,000.00$ 74,060,000.00$ 111,069,343.75$ February 15, 2044 Yes 93,781,044.89$ 88,215,971.18$ 5,565,073.71$ 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+ Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated Obligations Issued Outstanding 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, 2019 Current Credit Rating Certificates of Obligation, Series 2015 93,015,000.00$ 78,685,000.00$ 123,149,679.00$ February 15, 2045 Yes 97,983,335.00$ 92,653,678.00$ 5,329,657.00$ 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$ 31,430,000.00$ 39,739,808.00$ February 15, 2035 Yes 23,013,424.58$ 20,832,654.38$ 2,180,770.20$ 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+ Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated Obligations Issued Outstanding 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, 2019 Current Credit Rating Certificates of Obligation, Series 2016 83,305,000.00$ 73,890,000.00$ 111,585,759.63$ February 15, 2046 Yes 92,340,554.08$ 80,935,881.54$ 11,404,672.54$ 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$ 25,840,000.00$ 32,678,575.00$ February 15, 2036 Yes 16,915,296.52$ 15,276,921.23$ 1,638,375.29$ 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$ 325,362,250.00$ December 1, 2037 No 246,164,298.03$ 232,699,710.19$ 13,464,587.84$ 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+ Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated Obligations Issued Outstanding 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, 2019 Current Credit Rating Certificates of Obligation, Series 2017 90,800,000.00$ 82,150,000.00$ 127,576,200.00$ February 15, 2047 Yes 98,365,003.11$ 59,585,741.56$ 38,779,261.55$ 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$ 21,425,000.00$ 26,881,578.33$ February 15, 2037 Yes 17,294,870.71$ 1,755,362.38$ 15,539,508.33$ 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 Bonds, Series 2018 19,235,000.00$ 18,695,000.00$ 26,038,862.91$ 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$ 8,740,000.00$ 11,136,587.56$ February 15, 2038 Yes 10,020,369.57$ 5,295,894.14$ 4,724,475.43$ 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+ Outstanding Debt Principal Principal Combined Final Maturity Secured By Total Proceeds Proceeds Proceeds Official Stated Obligations Issued Outstanding 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, 2019 Current Credit Rating Certificates of Obligation, Series 2018A 29,545,000.00$ 28,250,000.00$ 39,684,540.78$ February 15, 2038 Yes 31,802,096.74$ 5,461,253.23$ 26,340,843.51$ 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+ General Obligation Refunding & Improvement Bonds, Series 2019 44,340,000.00$ 44,340,000.00$ 54,821,081.96$ February 15, 2039 Yes 48,176,707.02$ 28,738,853.14$ 19,437,853.88$ (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 improvementsfor publicpurposesinsaid Issuer,to wit:(A)$14,580,000 for street improvements,(B)$705,000 for stormwater drainage and flood control improvements, and (C) $4,085,000 for park system improvements. Not Rated AA+AA+ Certificates of Obligation, Series 2019 28,755,000.00$ 28,755,000.00$ 39,301,427.80$ February 15, 2049 Yes 30,516,238.82$ 1,270,553.31$ 29,245,685.51$ 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)theIssuer'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 $10,110,000 in principal amount for the purpose of:renovations to,and equipping of, existing municipal buildings,(a)including the acquisition and installation of replacement heating,venting and air conditioning equipment,roofing and flooring;(b)acquisition of vehicles and equipment for the fire,police, building inspections,community improvement services,animal services, streets and traffic control,facilities management,and parks and recreation departments;(c)constructing and improving streets,including landscaping, drainage,utilitylinerelocations andtheacquisition of land andrights-of-way therefor;(d)acquiring,constructing,installing and equipping a public safety facility for the police department,including the acquisition of land therefor; (e)acquiring,extending,constructing,renovating,improving and equipping parking facilities,including the acquisition of land therefor;and (f) acquisition and installation of technology equipment including computer equipment and software for various municipal departments;and also for the purpose of paying allor a portion of the Issuer's contractual obligations for professional services,including engineers,architects,attorneys,map makers, auditors,and financial advisors,in connection with said projects and said Certificates of Obligation. Not Rated AA+AA+ TOTAL 886,865,000.00$ 774,655,000.00$ 1,123,573,645.03$ 919,330,365.75$ 725,363,609.54$ 193,966,756.21$