Page 364 - CityofColleyvilleFY25AdoptedBudget

Debt Service
Debt Ser vice Requirements for Fiscal Year 2025

The total debt service requirement for the City of Colleyville for scal year 2025 is $1,540,894. This amount
includes $947,784 in principal payments, $591,610 in interest payments, and $1,500 in paying agent fees.

Debt Limit and Outstanding Debt

The State of Texas imposes a limit on the amount of General Obligation debt that can be issued by
municipalities. This limit applies to General Obligation Bonds and Certi cates of Obligation Bonds and is set at
10% of the total assessed property value before applying exemptions. For the City of Colleyville, this limit
equates to $900 million. The City's actual General Obligation debt, net of Debt Service assets, stands at $11
million, leaving a signi cant margin of over $889 million. The City does not foresee any projects that would
approach this limit in the near future.

Detailed information on the City’s outstanding bonds and leases, including a Statement of Bonded
Indebtedness and Expenditures by Issue, is provided in the following pages.

Tax Suppor ted Debt

The City has two outstanding bond issues supported by tax revenues, with total debt service requirements for
Fiscal Year 2025 amounting to $954,525, which includes principal, interest, and paying agent fees.

General Obligation Refunding Bonds, Series 2016
Issued on July 19, 2016, for $6,225,000 to refund the General Obligation Bonds Series 2007 and Combination Tax
and Tax Increment Revenue Refunding Bonds Series 2011. The Series 2007 bond proceeds funded capital
improvements in public safety, including Central Fire Station improvements, re ghting equipment, and
outdoor warning sirens. The Series 2011 bond proceeds enabled the City to re nance various outstanding bonds
at a signi cant cost saving. Interest is paid semi-annually, beginning February 15, 2017, at rates from 2.00% to
3.00%. The term bonds mature annually through February 15, 2027, in amounts ranging from $410,000 to
$875,000. The City retains the right to redeem bonds maturing on or after February 15, 2027, on or after
February 15, 2026.

Combination Tax and Revenue Cer ti{cates of Obligation, Series 2022
Issued on November 15, 2022, for $10,030,000 to fund the construction, improvement, renovation, and
equipping of park and recreation facilities, speci cally for the renovation and purchase of the new Colleyville
Recreation Center. Interest is paid semi-annually, beginning August 15, 2023, at rates from 4.00% to 5.00%. The
term bonds mature annually through February 15, 2042, in amounts ranging from $55,000 to $855,000. The City
reserves the right to redeem bonds maturing on or after February 15, 2031, starting February 15, 2030.

As of January 2022, the City's General Obligation debt is rated AAA by Standard & Poor’s, with a stable outlook.

Capital Leases

The City has three outstanding capital leases funded by tax revenues, with debt service requirements for Fiscal
Year 2025 totaling $289,185, including principal and interest. Additionally, there is a proposed new capital lease
for a re truck, with estimated debt service requirements of $297,184 for the scal year.

Capital leasing allows the City to spread out payments for large capital equipment purchases, reducing the
immediate impact on taxpayers and preventing uctuations in the debt service tax rate. This approach is
particularly important given the rising costs of public safety equipment, such as re apparatus, which have
increased by 10% to 35% for a single vehicle. Leasing enables the City to maintain up-to-date equipment that
meets or exceeds safety standards while managing costs effectively.

Future Debt Ser vice Requirements

City of Colleyville | Budget Book 2025 Page 364