Page 304 - City of Watauga FY22 Adopted Budget

DEBT SERVICE

During FY2003-2004 the City was once again able to take advantage of low interest
rates and refunded the General Obligation Debt Series 1994 and advance refunded the
Watauga Parks Development 1995 Sales Tax Revenue Bonds.

During FY2004-2005 the City issued $5,000,000 of Certificates of Obligation for
construction, purchasing, renovating, and improving the City’s public safety facilities,
expansion of the City library, and construction or improvements to streets, curbs, and
sidewalks within the City.

During FY2006-2007, the City issued $3,400,000 of Combination Tax and Limited
Pledge Revenue Certificates of Obligation for the purpose of paying contractual
obligations for constructing, purchasing, renovating, and improving the City’s public
safety facilities, including police, fire, and emergency medical services,
and constructing street improvements and drainage incidental thereto.

In March 2008, the City refinanced the bonds issued in 1996, which were used to pay
for acquisition, improvements, and extensions to the Water/Sewer system including
payment for professional services related to the construction and financing of
water/sewer improvements. The City was able to reduce interest from 4.783% to
3.12%, while also freeing up $360,000 from the Bond Reserve Fund, which is no
longer required.

During FY2010-2011, The City issued $7,365,000 Combination Tax and Limited
Pledge Revenue Certificate of Obligation Bonds, of which $4,585,000 are paid from
property tax levies. These bonds were issued to finance various equipment needs
(i.e., radios, computer hardware), street projects and improvements, specific use
vehicles such as a quint fire truck, ambulance, public works heavy equipment, traffic
lights and traffic safety equipment, and possible renovation of some buildings. This
debt issuance was timed for FY2011-2012 since the City’s total debt obligations
decreased the end of FY2010-2011. Also, during FY2010-2011, the City refunded
$1,000,000 in Certificates of Obligation, Series 1998. The City was able to reduce
interest from 4.6% to 1.95%.

During FY2011-2012, the City issued $7,730,000 Combination Tax and Limited Pledge
Revenue Certificate of Obligation bonds, which will be paid from water and sewer fund
revenues. These bonds were issued to finance various utility system projects, to
include street improvements and storm water and drainage system improvements.
The City began these projects in FY2012-2013 and the projects continued through
FY2015-2016.

During FY2012-2013 the City was once again able to take advantage of low interest
rates and refunded the Series 2003 and Series 2005 Certificate of Obligation. The
gross savings to the City was $126,523.12 through this refunding.

In FY2013-2014, the City issued $3,500,000 Combination Tax and Limited Pledge
Revenue Certificate of Obligation bonds, which will be paid from property tax levies.

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