Page 284 - CityofWataugaAdoptedBudgetFY24

DEBT SERVICE

In FY2015-2016, the City issued $5,885,000 Combination Tax and Limited Pledge
Revenue Certificates of Obligation bonds, which will be paid from property tax levies.
These funds were used for street improvements throughout the City and quality of life
projects such as a splash pad, trails, and parking improvements. Whitley Road phase
I was completed in FY2021-2022.

In FY2016-2017, $1.2 million of the Utility Fund debt service dropped off due to the
final payment being made in FY2015-2016 for the debt service associated with the
purchase of the Water system from North Richland Hills. In the summer of 2017, the
City Council considered and approved additional utility project infrastructure funding by
issuing certificates of obligation in the amount of $7.325 million. These funds were
received in August 2017 and funded water and sewer projects identified in the City’s 5-
year Capital Improvements Project plan. Whitley Road, phase 3 was the final project
funded by these proceeds and was completed in FY2022-2023.

In FY2017-2018, $6.780 million Certificates of Obligation issuance was approved by
Council. The proceeds will fund street projects, park projects, building equipment,
signage throughout the City, and capital equipment items.

In August 2019, City Council approved an $8.490 million Combination and Limited
Pledge Revenue Certificates of Obligation issuance. Proceeds will fund water and
sewer projects and equipment, and some general fund capital equipment. The majority
of the debt, $8.065 million, will be repaid with Utility system revenues and $425,000 of
the principal will be paid by the I&S component of the tax rate. Payments will begin in
February 2020 at approximately $70,000 annually for the General Fund portion of the
debt, and approximately $344,000 for the Utility Fund. Standard & Poor Rating
Services assigned a ‘AA’ rating to this issuance.
In August 2020, a $3.0 million Combination and Limited Pledge Revenue Certificates of
Obligation issuance was issued. Proceeds will fund a Fire Station restroom renovation
project, continuation of the Whitley Road Street Project, and construction of a restaurant
food truck site at Capp Smith Park to spur economic development in the City.
Additional projects funded are a roof replacement for the Library facility, construction of
an equipment and vehicle storage facility (pole barn) for the Parks facility, and various
capital outlay items.
During the fiscal year ended September 30, 2021, the City issued $1,715,000 in
General Obligation Refunding Bonds with an interest rate of 1.17%. $560,000 was used
to advance refund the outstanding Series 2011 Certification of Obligation Bonds in the
General Debt Service Fund and $1,125,000 was used to advance refund the
outstanding Series 2011 Certification of Obligation Bonds in the Water and Sewer Fund.
The refunding resulted in a gross savings of $84,268.

Also, during FY2020-2021, the City Council approved the issuance of a $4.7 million
Combination and Limited Pledge Revenue Certificates of Obligation issuance to
continue the street program funding and capital equipment funding for needs identified
in the 5 year Capital Improvement Plan and the 5-year Capital Outlay Plan.

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