City of Carrollton (City) outstanding debt is comprised of direct obligations and contractually obligated debt from other entities. Direct obligations consist of debt issued by the City and secured by levied taxes or City revenues. Contractually Obligated Debt is debt issued by other Entities that the City is obligated to pay and calculated in accordance to contractual provisions.
General Obligation Bonds
General Obligation Bonds provide funds for the acquisition and construction of major capital equipment, facilities, and infrastructure. General obligation Bonds are direct obligations issued on a pledge of the general taxing power for the payment of the debt obligations of the City. General Obligation Bonds require the City to compute, at the time other taxes are levied, the rate of tax required to provide (in each year bonds are outstanding) a fund to pay interest and principal at maturity. The City is in compliance with this requirement.
General Obligation Bonds have been rated AAA by Standard & Poor’s and Fitch.
Water and Sewer Revenue Bonds
Revenue Bonds are used to finance the acquisition and construction of major capital improvements for the water and sewer system and related facilities. These Revenue Bonds constitute special obligations of the City solely secured by a lien on and pledge of the net revenues of the water and sewer system.
The Revenue Bonds are collateralized by the revenue of the water and sewer system and the various special funds established by the bond ordinances. The ordinances provide that the revenue of the system is to be used first to pay operating and maintenance expenses of the system and second to establish and maintain the revenue bond funds. Remaining revenues may then be used for any lawful purpose. The ordinances also contain provisions which, among other items, restrict the issuance of additional revenue bonds unless the special funds noted above contain the required amounts and certain financial ratios are met. Management of the City believes that it is in compliance with all significant financial requirements as of September 30, 2015.
Water and Sewer Revenue Bonds have been rated AAA by Standard & Poor’s and Fitch.
Tax and Golf Course Surplus Revenue Certificates of Obligation
The Tax and Golf Course Surplus Revenue Certificates of Obligation constituted direct tax obligation of the City payable from ad valorem taxes levied, within the limits prescribed by law, against all taxable property within the City and are additionally payable from and secured by a pledge of surplus net revenues of the City’s Golf Course as provided in the ordinances authorizing the Certificates. In December 2013, the City called all the remaining certificates of obligation. These certificates of obligation were repaid from available cash balances in the General Fund creating an internal loan from the Golf Course Enterprise Fund.
Dallas Water Utilities (DWU) Contractually Obligated Debt
Carrollton has a “take or pay” contract to purchase potable water on wholesale basis. Overlapping debt is calculated based on Carrollton’s Rate of Flow setting as a percent of all wholesale customers applied to total outstanding DWU debt multiplied by the percentage of the DWU system applicable to wholesale customer activities. Debt numbers are taken from the DWU Wholesale Rate Study.
Trinity River Authority – Central Regional Wastewater System (CRWS)
Carrollton has a contractual obligation to pay its pro rata share of all operating and debt related expenses based on its percentage of flows to the CRWS. Overlapping debt is calculated based on the City’s percentage of flows to CRWS. TRA is a November 30th year end.
As of September 30, 2015 the Direct and Contractually Obligated Debt for the City was as follows:
Note: Per Capita figures are based on the City’s 2015 estimated population of 125,250.
Outstanding Debt Obligation by Issue as of 9/30/15: Issue-by-issue listing including principal amount of each outstanding debt obligation.
Outstanding Direct Debt by Fiscal Year for the last 5-years: Total outstanding tax-supported and revenue-supported debt.
Historical Bond Election Information: Includes election date, purpose, and amount of bond elections.
Budget: Documents include debt service information for current and previous fiscal years.
Bond Review Board: Local government debt data.
Debt Service as of 9/30/15: Debt service schedules for all outstanding General Obligation Bonds, Certificates of Obligation and Revenue Bonds.
For more information on the most current General Obligation and Revenue Bonds, visit the Official Statements web page.
HB 1378: Debt Obligation Reporting under Local Government Code Section 140.008
The 84th Legislature passed HB 1378 to increase the transparency of local government debt. Under Local Government Code § 140.008, political subdivisions, including counties, cities, school districts, junior college districts, special purpose districts, and other subdivisions of state government must annually compile their debt obligation data from the preceding fiscal year.
Bond Authorization Balance Information as of 9/30/15: Authorized debt, issued and unissued amounts.
Debt Financial Information as of 9/30/15: Outstanding direct debt obligations, tax and revenue supported. Includes purpose, credit rating, outstanding principal amount, debt service, and spent and unspent proceeds issue-by-issue.