Page 305 - CityofWataugaAdoptedBudgetFY25

DEBT SERVICE

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 began 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.

During FY2021-2022, the City issued $4.2 million in General Obligation Refunding Bonds with an
interest rate of 2 to 4% and was used to advance refund the outstanding Series 2012 Certification
of Obligation Bonds in the debt service fund. This refunding resulted in a gross savings of
$419,775.

In August 2022, the City Council approved the issuance of $4.93 million Combination and Limited
Pledge Revenue Certificates of Obligation with an interest rate of 4% to fund street projects,
building improvements, parks projects, and the Capital Outlay plan.

In September 2023, the City Council approved the issuance of $8.95 million Combination and
Limited Pledge Revenue Certificates of Obligation to fund street projects and an ambulance for
the Fire Department.

In September 2024, the City Council approved the issuance of $7.1 million Certificate of
Obligations. The proceeds will fund a fire truck for the Fire Department, solar trail lights, building
and parking lot renovations, and the installation of a utility Advanced Metering Infrastructure (AMI)

285