Page 109 - City of Fort Worth Budget Book

Debt Service Funds Debt Service Fund Statement

Total General Obligation Debt

Trinity Lakes TIF
$1,748,950
1.1%

Culture and Tourism
$6,954,652
4.4%
General - Property Tax
Supported
$145,563,573 Municipal Parking
92.3% $2,980,400
1.9%

Solid Waste
$434,446
0.3%

Ad Valorem Tax Supported Debt
Current property tax collections cover most of the general debt service assisted by delinquent property tax
collections. Other revenues include a transfer to the General Debt Service Fund from the Crime Control and
Prevention District (CCPD) for CCPD-eligible activities, a transfer from the Trinity Lakes TIF, and interest
earnings. Projected revenues for debt service are as follows:

Current Property Tax $ 161,328,713
Other Revenue $ 6,248,939
$ 167,577,652

State property tax law allows the city to levy a property tax to pay for its long-term (over 1 year) debt obligations
and for the next fiscal year $0.1475 (20.14%) of the total tax rate is devoted to paying long-term debt service
obligations. For FY2024 the city’s combined recommended property tax rate is $0.6725 per $100 of assessed
valuation with a 98.25% collection rate. This represents a $0.15 decrease from the prior year’s property tax rate.
The debt service levy rate of $0.1475 per $100 of assessed valuation is expected to yield approximately $161
million which, along with other revenues, will allow the repayment of all current general debt obligations.
The State Constitution limits the tax rate to $2.50 per $100. Administratively, the Texas Attorney General will only
allow up to $1.50 per $100 for all tax-supported debt. This amount is calculated at the time the bonds are sold and
based on a 98.50% collection rate. Self-supporting debt does not count against the $1.50.

The city’s credit ratings are complimentary of strong financial performance, maintaining reserves, and strong
financial governance. The city’s credit strengths are somewhat offset by the city’s unfunded pension liability and
fixed cost burden. Moody’s Investors Services (Moody’s), S&P Global Rating Services (S&P), Fitch Rating
Services (Fitch), and Kroll Bond Rating Agency (Kroll) have all assigned ratings to the City of Fort Worth’s
outstanding debt. The city’s general obligation debt is rated ‘Aa3’ by Moody’s, ‘AA’ by both S&P and Fitch, and
‘AA+’ by Kroll. The city’s water and sewer system revenue bonds are rated ‘Aa1’ by Moody’s, ‘AA+’ by S&P, and
‘AA’ by Fitch. The city’s drainage utility system revenue bonds are rated ‘AA+’ by both S&P and Fitch. The city’s
special tax revenue bonds are not rated by S&P or Kroll, and are rated ‘A1’ and ‘AA’ by Moody’s and Fitch,
respectively.

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