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Debt Service

Debt Ser vice Requirements for Fiscal Year 2026
The total debt ser vice requirement for the City of Colleyville for {scal year 2026 is $1,693, 245. This amount includes
$1,084 , 358 in principal payments, $607, 387 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 Cer ti{cates of Obligation Bonds and is set at 10% of the total assessed
proper ty 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 Ser vice 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 suppor ted by tax revenues, with total debt ser vice requirements for Fiscal Year
2026 amounting to $952 ,575, which includes principal, interest , and paying agent fees. As of January 2022 , the City's
General Obligation debt is rated A A A by Standard & Poor ’s, with a stable outlook .

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 reser ves the right to redeem bonds maturing on
or after February 15, 2031, star ting February 15, 2030.

Capital Leases
The City has four outstanding capital leases funded by tax revenues, with debt ser vice requirements for Fiscal Year 2026
totaling $615,669, including principal and interest . Additionally, there is a proposed new capital lease for a {re truck , with
estimated debt ser vice requirements of $125,000 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 ser vice tax rate. This approach is par ticularly impor tant 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 The subsequent pages provide a detailed breakdown of the future annual principal
and interest requirements for the City's outstanding debt obligations, including capital leases. As of October 1, 2025,
through 2042 , the City has $14 ,169, 341 in principal to retire and $ 4 , 856 ,705 in interest to pay.

FY 2025-2026 Annual Budget | Colleyville Page 159