Page 386 - Cover 3.psd

ADOPTED | BUDGET

determination of the City’s capacity to authorize, issue, and service debt. On the basis of this
determination and with the approval of the City, Hilltop Securities, Inc. proceeds with the sale of any
debt instruments. Furthermore, after the City accepts a bid for any debt instruments, Hilltop
Securities, Inc. directs the closing of the sale.

Debt Capacity – As of October 1, 2020, the City currently has capacity to issue approximately $42
million in tax-supported debt over the next three years. The following assumptions were made in
determining the City’s debt capacity: no change in taxable value through either the appreciation of
property or through the addition of new construction, a constant interest and sinking (I&S) tax rate
of $0.223320, the continued retirement of the City’s existing debt in accordance with its debt service
schedules, an estimated interest rate of 2.1% to 5.0% for future debt, new debt being amortized
over 20 years with an level principal debt service structure, and the City maintaining its current bond
rating. This capacity will be utilized to support the City’s 2020 Bond program approved as part of
the November 2020 bond election.

DEBT SERVICE FUND SUMMARY

Below is a summary of each of the City’s outstanding obligations. Please note the figures in
parentheses represent the remaining principal amount for each issue.

GENERAL DEBT OUTSTANDING (Series 2010‐2022)

General Obligation Bonds, 2022 – In August 2022, a total of $11,830,000 in General Obligation
Bonds were issued. This amount was street projects in the 2020 bond election. The projects in
this issuance included were Wood View Drive, Windhaven Road, South Crest Drive, Sierra Drive,
Post Oak Drive, Main Street, Lariat Trail, Kirk Lane, Harmonson Road, Dawn Drive, Daniel Drive,
and Crystal Lane.

Certificates of Obligation, 2022 – A debt issuance of $3,645,000 were issued in August 2022. This
amount was for replacement of an Ambulance unit and the Big Fossil Sewer Interceptor
Rehabilitation project.

General Obligation and Refunding Bonds, 2021 – In 2021, a total of $18,520,000 in General
Obligation and Refunding Bonds were issued. Of this amount, $18,275,000 was street projects in
the 2020 bond election. The projects in this issuance included were Glenview Drive West,
Bedford-Euless Road, Nor’East Drive, North Hills Drive, Meadow Oak Drive, Pearl Street,
Southampton Drive, part of Iron Horse Boulevard, Diamond Loch West, Stonybrooke Drive, and
Nob Hill Drive. The Refunding Bonds refunded $255,000 of the Series 2012 GO Refunding Bonds
still outstanding.

Certificates of Obligation, 2021 – A future debt issuance of $875,000 were issued in a private
placement. This amount was for rehabilitation of a water storage tank for the utility department.

General Obligation Bonds, 2020 – In 2020, a total of $3,860,000 in General Obligation Bonds were
issued. Of this amount, $3,860,000 was for the Glenview Drive East street and drainage project.
These funds were part of the 2003 bond election.

382 NRH | TEXAS