Debt Service Funds Overview

Transcription

1 Debt Service Funds Overview Irving issues longterm debt to finance major capital purchases; most often to improve or expand city facilities and infrastructure, but also for major capital equipment such as fire engines. The city has several financial policies regarding the use of debt located in the Budget Overview section. The city issues several different types of debt. Each type is issued for a specific purpose and is funded by one or more specific revenue streams over the term of the debt obligations. General Debt is backed by the full faith and credit of the City of Irving, meaning any revenue source can be used to pay the debt. In practice, principal and interest payments are funded by an assessment of tax on the valuation of each commercial, residential and business personal property account within the city. The city s general obligation debt is rated AAA/Aaa, the highest possible credit rating, by both Standard and Poor s and by Moody s Investor Services, two nationally recognized bond rating agencies. Article XI, Section 5 of the State of Texas Constitution states in part: no tax for any purpose shall ever be lawful for any one year, which shall exceed two and onehalf percent of the taxable property of the city. As a home rule city, the City of Irving is not limited by Texas State Law as to the amount of debt it may issue. The city charter limits the property tax rate to $1.50 per $100 valuation. The current tax rate is $.5986 per $100 valuation, which is unchanged from the prior year, so the charter tax rate limitation provides virtually no limit to debt issuance. Water and Sewer Revenue Debt is issued to finance capital improvements and expansion of the city s water and sewer utility. This debt is financed only from the revenues generated from water system customers and is not backed by the full faith and credit of the city. As a result, the bond ratings for Water and Sewer Revenue debt are lower at AA/Aa1, which translate into slightly higher interest cost for this debt. Municipal Drainage Utility (MDU) Debt is similar to Water and Sewer revenue debt. It is issued to fund the maintenance of the city s storm water drainage system and is funded by a monthly drainage fee on each parcel of land in the city. MDU debt is rated Aa2. Hotel Occupancy Tax (HOT) Debt was issued to finance the land purchase, design and construction of the Irving Convention Center. The primary revenue source to service this debt is 7% of the city s 9% Hotel Occupancy Tax, but General tax revenues are also pledged to finance the debt service in the event that HOT revenues are insufficient to meet debt obligations in a given year. This debt also carries the highest rating of AAA/Aaa by rating agencies. FY Annual Operating Budget 353

2 Entertainment Venue Debt was issued in 2011 to finance the cost of land acquisition and design of a proposed entertainment venue next to the convention center. This debt is funded by a 2% allocation of the city s 9% HOT revenue specifically dedicated to the development of an entertainment venue. The entertainment venue debt is rated as BBB+. Solid Waste System (SWS) Revenue Debt was issued in 2012 to finance the city s acquisition of land for redevelopment. This issue is considered part of general debt service, but has revenue from the Solid Waste Services system specifically pledged as a repayment funding source. Public Improvement District (PID) Debt was issued in 2013 to finance the development of public infrastructure for two residential developments in Irving. Tax and Revenue Certificates of Obligation were issued with AAA/Aaa ratings backed by the full faith and credit of the city. However, the debt for the two districts is selfsupporting, with debt service to be paid by incremental growth in property values of a Tax Increment Financing (TIF) district. Should the growth in property values be insufficient to pay the debt service in a given year, a special assessment on all property within the PID/TIF district will be established to fully fund debt service requirements. The Total Debt Obligations chart on the following page summarizes the FY principal and interest payments and the total amount of debt outstanding. The chart also projects the cost of proposed new debt issues over the next five years as well as the amount of debt that will be paid off during that time. It is projected that the city s total debt obligations will increase by approximately $26 million in the next five years, including the proposed new debt issues for the FY budget and proposed bond sales over the next four budget years. Debt Fund Overview FY Annual Operating Budget 354

3 FY Budget Total Debt Obligations Debt Type General Debt Water & Sewer Revenue Debt MDU Revenue Debt Convention Center Debt Entertainment Venue Debt Sanitation Revenue Debt PID #1 Debt Bridges of Las Colinas PID #2 Debt Ranchview Total Funding Source Property Taxes (Full Faith and Credit) Water & Sewer System Revenue Drainage Utility Fee 7% HOT Revenue 2% Brimer HOT Revenue Sanitation Fees transferred to General Fund Special Property Assessment Special Property Assessment FY Payments Principal $ 15,295,000 $ 14,352,562 $ 180,000 $ 346,875 $ 703,125 $ 155,000 Interest $ 9,015,990 8,494,208 Total $ 24,310,990 $ 22,846, ,810 $ $ $ 31,032,562 $ $ 169,810 $ 6,315,635 $ 962,621 $ 1,351,732 $ 248,400 $ 86,263 $ 26,644,659 $ $ 6,662,510 $ 1,665,746 $ 1,506,732 $ 248,400 $ 86,263 $ 57,677,221 Net Debt Outstanding FY to FY Principal $ 223,545,000 $ 207,015,963 $ 4,535,000 $ 129,145,125 $ 25,531,800 $ 28,945,000 $ 8,750,000 $ 3,210,000 $ 630,677,888 Interest $ 77,463,840 $ 73,713,030 $ 1,970,772 $ 127,267,625 $ 9,062,085 $ 16,189,125 $ 3,443,925 $ 1,136,935 $ 310,247,337 Total $ 301,008,840 $ 280,728,993 $ 6,505,772 $ 256,412,750 $ 34,593,885 $ 45,134,125 $ 12,193,925 $ 4,346,935 $ 940,925,225 5 Year CIP Projection of New Debt $ 114,251,808 $ 115,673,493 $ $ $ 151,086,747 $ $ $ $ 381,012,048 Total Estimated Debt Service $ 415,260,648 $ 396,402,486 $ 6,505,772 $ 256,412,750 $ 185,680,632 $ 45,134,125 $ 12,193,925 $ 4,346,935 $ 1,321,937,273 Debt Retired FY 1418 $ 125,275,143 $ 128,517,281 $ 1,745,631 $ 34,796,892 $ 51,900,629 $ 10,448,605 $ 1,548,000 $ 737,312 $ 354,969,493 Estimated Net Debt Outstanding in FY 1718 $ 289,985,505 $ 267,885,205 $ 4,760,141 $ 221,615,858 $ 133,780,003 $ 34,685,520 $ 10,645,925 $ 3,609,623 $ 966,967,780 Debt Fund Overview FY Annual Operating Budget 355

4 General Debt Service Summary General debt can be in the form of general obligation (GO) bonds, certificates of obligation or tax notes. GO bonds must be approved by vote of the residents prior to issuance. In the most recent election (November 2006) residents voted to authorize $335 million in GO bonds. This bond election was divided into eleven separate propositions, and was recommended by a residents bond taskforce that met throughout the spring and summer of 2006 to assess the infrastructure needs of Irving for the next ten years. The General Interest and Sinking Fund is maintained to pay the debt service on General Obligation Bonds and Certificates of Obligation. A portion of the ad valorem tax rate is designated to pay debt service and is deposited into this fund for that purpose. An amount equal to the current year debt service is assessed each year. The City of Irving currently has $223,545,000 of general obligation bonds outstanding and has authorization to issue additional bonds in the amount of $325,000,000 for various purposes. This total includes the $335 million from the 2006 bond election as well as residual amounts remaining to be issued from the 1999 bond election. The authorized unissued amount includes the $16.2 million issuance planned for FY Additional information about individual projects planned for FY can be found in the CIP section of the budget Authorized General Obligation Bonds Debt Fund Overview Amount Amount Date Amount Previously Being Unissued Purpose Authorized Authorized Issued Issued 2014 Balance Streets 2/6/1999 $ 133,880,000 $ 96,330,000 $ 30,000 $ 37,520,000 Drainage Imprs 2/6/ ,000,000 15,750,000 3,500,000 5,750,000 Parks 2/6/ ,800,000 31,500, ,000 5,000,000 City Buildings 2/6/1999 8,500,000 6,220,000 2,280,000 Landfill 2/6/1999 9,055, ,000 8,855,000 Fire Services 2/6/ ,105,000 9,320,000 8,785,000 Police Services 2/6/1999 8,650,000 8,150, ,000 Youth Dev/Comm Ctr 2/6/1999 2,495,000 1,995, ,000 Streets 11/7/ ,825,000 10,245,000 6,170, ,410,000 Drainage Imprs 11/7/ ,600, ,000 32,100,000 Parks 11/7/ ,475,000 14,635,000 1,500,000 40,340,000 Library 11/7/ ,200,000 18,200,000 City Buildings 11/7/ ,600,000 6,155, ,000 9,195,000 Public Safety 11/7/ ,305,000 2,990,000 12,315,000 Voice & Data Systems 11/7/ ,000,000 14,500,000 2,500,000 8,000,000 Gateway Impovement 11/7/ ,000,000 6,800,000 1,950,000 26,250,000 Senior Citizens Center 11/7/ ,000,000 10,000,000 Totals: $ 568,490,000 $ 243,490,000 $ 16,200,000 $ 308,800,000 FY Annual Operating Budget 356

5 Other general debt instruments can include certificates of obligation and tax notes. Certificates of obligation do not require voter approval, are generally short term in nature, and are frequently used to fund capital improvements not anticipated at the time of the latest bond election. There are currently $4,000,000 of certificates of obligation outstanding. Tax notes are similar to certificates of obligation in that there is no requirement for voter approval and they are generally short term in nature. The City of Irving currently has no tax notes outstanding. Distribution of FY Ad Valorem Collections % of Total Rate per $100 Collections General Fund 74.37% $79,061,674 Interest & Sinking Fund 25.63% $27,241,826 Total % $106,303,500 Distribution of Property Tax Rate FY to Debt Fund Overview Operations Debt Service The graph above illustrates that the proportion of ad valorem tax allocated to debt service has remained fairly constant over the past 10 years. Changes in the tax rate approved by City Council have been made in response to changes in the tax base and funding requirements of the General Fund. The city s Debt Capacity Model is a financial tool used to assess the city s financial ability to incur additional debt. Capital infrastructure expansion and replacement requirements are carefully balanced against current and future revenue and expenditure patterns to determine the optimal level of debt issuance for any given year, as well as determining total debt levels in future years. The model is updated on a semiannual basis during budget preparation and also at the time of bond issuance. Certain ratios are tested with the model including the ratio of general debt service expenditures to General Fund expenditures plus debt service. This target for this ratio is to remain below 15%. For FY , the ratio is 13.43%. FY Annual Operating Budget 357

6 Analysis of Benchmark Cities General Bonded Indebtedness for 2013 City Population Total Net Taxable Value Debt as a % of AV Ratio Rank Bonded Debt Per Capita Rank Arlington 380,084 17,677,891, % 1 2,742 2 Richardson 101,742 9,958,811, % 2 2,787 1 Garland 228,060 10,083,675, % 3 1,143 8 Mesquite 139,950 5,597,965, % Dallas 1,316,350 83,680,000, % 5 1,301 3 Grand Prairie 176,980 9,373,823, % 6 1,022 7 Ft. Worth 758,738 43,278,704, % 7 1,032 6 Carrollton 129,209 9,159,989, % 8 1,229 5 Denton 122,830 6,716,711, % Plano 269,776 25,647,504, % 10 1,294 4 Irving 220,750 17,312,693, % Average 349,497 21,680,706, % $1,387 Source: 2013 Annual TML Taxation and Debt Survey and city adopted budgets Ten other municipalities in the Dallas/Fort Worth Metroplex are used for benchmark comparisons of the city s outstanding general debt when compared to the city s population and total assessed value of all property within the city. Irving ranks lowest out of the 11 cities in debt to assessed valuation and tenth lowest when debt is compared to population. The difference in Irving s ranking between the two ratios is the large amount of commercial property in the city. Approximately 45% of the city s assessed value is compromised of commercial real estate with an additional 27% derived from business personal property. Only 28% of the tax base is residential property, a lower percentage than both Dallas and Fort Worth, and much less the suburban communities surrounding each city. Debt Fund Overview FY Annual Operating Budget 358

7 FY Adopted Entertainment General Hotel Occupancy Water and Sewer Venue Solid Waste Services Solid Waste Services Debt Service Debt Service Debt Service Debt Service Debt Service Reserve Fund Fund Fund Fund Fund Fund Beginning Fund Balance 1001 $ 9,671,354 $ $ 2,755,010 $ 1,283,071 $ 7,518 $ 2,246,523 Property Taxes $ 27,533,753 $ $ $ $ $ Sales Taxes $ $ $ $ $ $ Hotel/Motel Taxes $ $ $ $ $ $ Grant Receipts $ $ $ $ $ $ Tax Note Proceeds $ $ $ $ $ $ Bond Proceeds $ $ $ $ $ $ Franchise Fees $ $ $ $ $ $ Fees, Fines, and Permits $ $ $ $ $ $ Charges for Services $ $ $ $ $ $ Interest $ 24,178 $ $ 2,500 $ 100 $ $ 5,000 Rent $ $ $ $ $ $ Miscellaneous $ $ $ $ $ $ Lien Retirement $ $ $ $ $ $ Unrealized Gain $ $ $ $ $ $ Contributions $ $ $ $ $ $ Revenues $ 27,557,931 $ $ 2,500 $ 100 $ $ 5,000 Transfers In $ 445,206 $ 5,357,491 $ 23,202,799 $ 1,353,000 $ 1,507,232 $ 228,004 Total Revenues $ 28,003,137 $ 5,357,491 $ 23,205,299 $ 1,353,100 $ 1,507,232 $ 233,004 Funds Available $ 37,674,491 $ 5,357,491 $ 25,960,309 $ 2,636,171 $ 1,514,750 $ 2,479,527 Police $ $ $ $ $ $ Fire $ $ $ $ $ $ Community and Economic Development $ $ $ $ $ $ Administrative & Other $ $ $ $ $ $ Non Departmental $ $ $ $ $ $ Water and Sewer $ $ $ $ $ $ Streets/Engineering/Traffic $ $ $ $ $ $ Library $ $ $ $ $ $ Parks and Recreation $ $ $ $ $ $ Environmental and Public Health $ $ $ $ $ $ Municipal Court $ $ $ $ $ $ Debt Service $ 28,353,137 $ 5,044,745 $ 22,851,770 $ 1,670,246 $ 1,507,232 $ Arts $ $ $ $ $ $ Expenditures $ 28,353,137 $ 5,044,745 $ 22,851,770 $ 1,670,246 $ 1,507,232 $ Transfers Out $ $ $ $ $ $ Total Expenditures $ 28,353,137 $ 5,044,745 $ 22,851,770 $ 1,670,246 $ 1,507,232 $ Ending Fund Balance 0930 $ 9,321,354 $ 312,746 $ 3,108,539 $ 965,925 $ 7,518 $ 2,479,527 FY Annual Operating Budget 359

8 FY Adopted PID#1/TIF#3 PID#2/TIF#4 Bridges of Las Colinas Ranchview Municipal Debt Service Debt Service Drainage Utility Debt Service Fund Fund Debt Fund Funds Beginning Fund Balance 1001 Property Taxes Sales Taxes Hotel/Motel Taxes Grant Receipts Tax Note Proceeds Bond Proceeds Franchise Fees Fees, Fines, and Permits Charges for Services Interest Rent Miscellaneous Lien Retirement Unrealized Gain Contributions Revenues Transfers In Total Revenues Funds Available Police Fire Community and Economic Development Administrative & Other Non Departmental Water and Sewer Streets/Engineering/Traffic Library Parks and Recreation Environmental and Public Health Municipal Court Debt Service Arts Expenditures Transfers Out Total Expenditures Ending Fund Balance 0930 $ 300,840 $ 104,474 $ 290,251 $ 16,659,041 $ $ $ $ 27,533,753 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 31,778 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 27,565,531 $ $ $ 349,810 $ 32,443,542 $ $ $ 349,810 $ 60,009,073 $ 300,840 $ 104,474 $ 640,061 $ 76,668,114 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 248,575 $ 86,438 $ 349,810 $ 60,111,953 $ $ $ $ $ 248,575 $ 86,438 $ 349,810 $ 60,111,953 $ $ $ $ $ 248,575 $ 86,438 $ 349,810 $ 60,111,953 $ 52,265 $ 18,036 $ 290,251 $ 16,556,161 FY Annual Operating Budget 360

9 General Debt Service Fund ACTUAL BUDGET ESTIMATED ADOPTED Available Fund Balance $ 7,310,659 $ 7,656,238 $ 9,646,329 $ 9,671,354 Revenues Ad Valorem Taxes $ 25,818,390 $ 26,105,784 $ 25,975,487 $ 27,233,753 Penalties and Interest 110, ,000 50, ,000 Delinquent Taxes 80, ,000 86, ,000 Transfer from Solid Waste Services 896, , , ,206 Misc. Revenue 2,292 Interest on Investments 17,098 38,281 5,348 24,178 Total Revenue $ 26,924,933 $ 27,268,978 $ 26,942,867 $ 28,003,137 Total Funds Available $ 34,235,592 $ 34,925,216 $ 36,589,195 $ 37,674,491 Expenditures: Principal Bonds $ 12,775,000 $ 14,010,000 $ 14,010,000 $ 15,295,000 Interest Bonds 9,420,717 9,108,820 9,108,820 9,015,990 Other Contract Payment 2,322,558 2,200,000 2,288,927 2,250,000 Other 67,088 1,509,294 1,509,294 1,792,147 Agent Fees Bonds 3,900 10, Total Expenditures $ 24,589,263 $ 26,838,114 $ 26,917,841 $ 28,353,137 Available Fund Balance 9 30 $ 9,646,329 $ 8,087,102 $ 9,671,354 $ 9,321,354 Fund Description: The General Interest and Sinking Fund is maintained to pay the debt service on General Obligation Bonds and Certificates of Obligation. A portion of the ad valorem tax rate is designated to pay debt service and is deposited into this fund for that purpose. An amount equal to the current year debt service is assessed each year. The fund balances have accumulated over the years from interest earned on the tax revenue prior to payment of debt service and from tax collections exceeding the budgeted 98% level. Standard & Poor's and Moody's have indicated that the reserve in this fund, which can be used for no purpose other than debt service, was a major factor in assigning the AAA and Aaa, ratings respectively, to the city's General Obligation Bonds. FY Annual Operating Budget 361

10 Schedule of Requirements for FY G e n e r a l O b l i g a t i o n B o n d s Series Name of Bond Principal Interest Total 2004 General Obligation Refunding and Improvement $ 1,605,000 $ 303,356 $ 1,908, General Obligation 750, ,938 1,122, A General Obligation Refunding and Improvement 3,260,000 1,326,683 4,586, General Obligation 1,375, ,156 2,260, General Obligation 1,640,000 1,078,866 2,718, Certificates of Obligation 200, , , General Obligation 3,410,000 1,174,075 4,584, General Obligation Refunding and Improvement 900, ,025 1,486, General Obligation Refunding and Improvement 250,000 1,659,529 1,909, General Obligation Refunding and Improvement 1,010, ,563 1,495, General Obligation 895, ,700 1,536, Proposed Certificates of Obligation 198, , Proposed General Obligation 170, ,000 Total Prinicpal and Interest $ 15,295,000 $ 9,015,990 $ 24,310,990 Other Obligations Olympus Developer Participation $ 2,250,000 $ $ 2,250, Refunding Savings Allocated to Convention Center 1,792,147 1,792,147 Total Debt Service Requirements $ 17,545,000 $ 10,808,137 $ 28,353,137 This schedule represents the debt service payments due on each outstanding general obligation bond issue plus estimated interest on the projected 2014 GO bond and 2014 Certificates of Obligation issues. Developer participation is the estimated payment due from debt service for capital improvements made as part of the Olympus development. In FY , GO Bonds were issued to refund several outstanding issues to reduce interest costs. At the time, the savings from this refunding were dedicated to create a reserve to provide excess debt service funding for the Convention Center bonds as needed in future years. FY Annual Operating Budget 362

11 Schedule of General Obligation Bonded Indebtedness to Maturity Projected Debt Olympus Convention Projected Year Principal Interest Total FY Obligation Center Total $ 15,295,000 $ 8,647,990 $ 23,942,990 $ 368,000 $ 2,250,000 $ 1,792,147 $ 28,353, ,890,000 8,032,596 22,922,596 3,583,333 1,815,514 1,663,666 29,985, ,215,000 7,442,890 21,657,890 2,947,400 1,680,231 26,285, ,225,000 6,839,614 20,064,614 4,696,200 1,675,554 26,436, ,180,000 6,345,170 18,525,170 6,566,950 1,893,718 26,985, ,190,000 5,885,514 17,075,514 8,248,825 2,041,162 27,365, ,695,000 5,375,108 25,070,108 3,416,075 2,081,276 30,567, ,590,000 4,593,089 23,183,089 3,195,675 2,300,299 28,679, ,440,000 3,779,214 21,219,214 6,382,675 2,655,195 30,257, ,800,000 3,032,083 20,832,083 7,023,000 2,879,104 30,734, ,700,000 2,260,030 11,960,030 6,799,425 3,112,178 21,871, ,285,000 1,870,916 11,155,916 6,575,850 3,357,910 21,089, ,545,000 1,481,582 10,026,582 6,352,275 3,559,544 19,938, ,275,000 1,141,935 8,416,935 6,128,700 3,818,074 18,363, ,920, ,623 6,744,623 5,905,125 3,994,495 16,644, ,935, ,888 6,508,888 5,681,550 4,126,550 16,316, ,230, ,981 3,551,981 5,452,975 4,261,521 13,266, ,355, ,025 2,547,025 5,219,700 4,395,988 12,162, ,880, ,350 1,985,350 4,996,900 4,538,658 11,520, ,000 40, ,050 4,774,100 4,687,726 10,391, ,551,300 4,831,395 9,382, ,728,500 4,988,349 7,716,849 $ 223,545,000 $ 77,463,840 $ 301,008,840 $ 111,594,533 $ 6,354,442 $ 71,844,032 $ 490,801,847 Millions General Obligation Bonded Indebtedness to Maturity with Projected Bond Sales $35 $30 $25 $20 $15 $10 $5 $ Principal Interest New Debt Olympus Convention Center FY Annual Operating Budget 363

12 Water and Sewer Debt Service Fund ACTUAL BUDGET ESTIMATED ADOPTED Available Fund Balance $ 2,243,190 $ 3,242,541 $ 2,758,410 $ 2,755,010 Revenues Transfer from Water & Sewer $ 21,725,758 $ 21,828,763 $ 21,828,763 $ 23,202,799 Interest on Investments 2,721 5,000 1,600 2,500 Total Revenues $ 21,728,479 $ 21,833,763 $ 21,830,363 $ 23,205,299 Total Funds Available $ 23,971,669 $ 25,076,304 $ 24,588,773 $ 25,960,309 Expenditures Principal Bonds $ 11,470,000 $ 12,740,000 $ 12,740,000 $ 14,040,000 Interest Bonds 8,715,840 8,194,859 8,194,859 7,912,866 Agent Fees Bonds 2,900 5,000 5,000 5,000 Transfer to Other Funds 130,614 Principal Lake Chapman 293, , , ,562 Interest Lake Chapman 600, , , ,342 Total Expenditures $ 21,213,258 $ 21,833,763 $ 21,833,763 $ 22,851,770 Available Fund Balance $ 2,758,410 $ 3,242,541 $ 2,755,010 $ 3,108,539 Fund Description: Water and Sewer Revenue Bonds are secured by the revenues of the water and sewer utility system. The City of Irving provides water and sewer services to its residents and businesses and sets rates for these services at a level to provide funds for daily operations of the system, routine capital improvements, and payments of debt service requirements. The System currently has $207,015,7615 in outstanding principal and does not plan to issue additional debt in FY #REF! The Water and Sewer Debt Service Fund is maintained to pay the debt service on Water and Sewer Revenue Bonds. An amount equal to the annual debt service requirement is transferred to this fund from the Water and Sewer System Fund each year. The bond covenants require monthly deposits to the Debt Service Fund of not less than one sixth of the next semi annual interest payment and one twelfth of the next annual principal payment. The money in this fund can only be used to pay debt service on outstanding Waterand SewerRevenue Bonds. FY Annual Operating Budget 364

13 Schedule of Requirements for FY W A T E R A N D S E W E R Series Name of Bond Principal Interest Total 2004 WW/SS New Lien Revenue Refunding and Improvement $ 2,015,000 $ 124,363 $ 2,139, WW/SS New Lien Revenue Improvement 330, , , WW/SS New Lien Revenue 2,435,000 1,145,425 3,580, WW/SS New Lien Revenue Refunding and Improvement 680, ,444 1,271, WW/S New Lien Revenue Bonds 519, , WW/S New Lien Revenue Refunding and Improvement 835, ,544 1,599, WW/S New Lien Revenue Refunding and Improvement 4,965,000 2,908,975 7,873, WW/S New Lien Revenue Bonds 2,180, ,613 3,153, WW/S New Lien Revenue Bonds 600, ,525 1,264,525 Total Revenue Bond Debt $ 14,040,000 $ 7,912,866 $ 21,952,866 Corps of Engineer's Payments $ 312,562 $ 581,342 $ 893,904 Total Debt Service $ 14,352,562 $ 8,494,208 $ 22,846,770 This schedule represents the debt service payments due on each outstanding water and sewer revenue bond issues. The 2009 New Lien Revenue Refunding and Improvement Bonds refunded the last of the bonds sold under the original lien bond covenants. For forward, Water and Sewer debt service is consolidated into one interst and sinking fund. FY Annual Operating Budget 365

14 Schedule of Water and Sewer Revenue Bonded Indebtedness to Maturity FY Year Principal Interest Total Projected New Debt $ 14,352,562 $ 8,494,208 $ 22,846,770 $ ,942,729 7,908,135 22,850,864 61, ,093,228 7,365,673 22,458,901 3,609, ,284,068 6,809,621 22,093,688 6,398, ,465,260 6,169,766 21,635,026 6,348, ,041,817 5,499,710 20,541,526 6,294, ,523,749 4,828,247 19,351,996 6,237, ,626,070 4,200,125 17,826,195 6,172, ,918,791 3,607,886 15,526,677 6,109, ,446,927 3,114,486 13,561,413 6,037, ,550,489 2,702,218 12,252,708 5,961, ,379,493 2,320,538 10,700,031 5,885, ,163,953 1,954,358 10,118,310 5,803, ,068,882 1,593,872 8,662,754 5,711, ,134,298 1,282,606 7,416,904 5,616, ,995,215 1,018,402 6,013,616 5,519, ,166, ,505 4,971,154 5,413, ,328, ,861 4,968,479 5,299, ,496, ,039 2,955,179 5,179, ,784, ,098 2,155,329 5,054,075 $ 207,015,961 $ 73,713,030 $ 280,728,991 $ 115,673,493 Millions Revenue Bonded Indebtedness to Maturity by Year $40 $35 $30 $25 $20 $15 $10 $5 $ Principal Interest Projected FY Annual Operating Budget 366

15 Hotel Occupancy Tax Debt Service Fund ACTUAL BUDGET ESTIMATED ADOPTED Available Fund Balance $ 11,895 $ 197,236 $ $ Revenues Transfer 5% Hotel/Motel Tax Allocation $ 1,269 $ $ $ Transfer from 1% Preservation Fund 600,000 Transfer from Convention Ctr 2% 4,574,663 4,674,754 4,574,754 5,044,745 Transfer from Entertainment Venue 2% 356, , , ,746 Interest on Investments Total Revenues $ 5,532,148 $ 5,032,882 $ 4,932,382 $ 5,357,491 Total Funds Available $ 5,544,043 $ 5,230,118 $ 4,932,382 $ 5,357,491 Expenditures Principal Bonds $ 510,000 $ 310,800 $ 310,800 $ 346,875 Interest Bonds 6,562,153 6,409,091 6,409,091 6,315,635 Agent Fees Bonds 398 5,775 6,000 Total Expenditures $ 7,072,550 $ 6,719,891 $ 6,725,666 $ 6,668,510 Internal Loan from General I&S 1,528,507 1,509,294 1,793,284 1,623,765 Available Fund Balance $ $ (1,489,773) $ $ 312,746 Fund Description: Hotel Occupancy Tax Revenue Bonds are secured by a 7% Hotel Occupancy tax assessed on sleeping rooms within the city. Bonds were issued in 2001 to purchase land in the Las Colinas Urban Center for a Convention Center. Two percent of the 7% Hotel Occupancy Tax is dedicated to the construction and operation of the Convention Center. A poriton of this revenue is transfered to this fund to pay debt service costs. Additional bonds were issued in 2009 to fund the construction of the Convention Center. As stated in the Convention Center bond covenants, debt service funds are deposited with an escrow agent from HOT revenues on year prior to payment of the debt service. FY Annual Operating Budget 367

16 Hotel Occupancy Tax Revenue Bonds Debt Service Summary C O N V E N T I O N C E N T E R Series Name of Bond Principal Interest Total 2013 Combination Tax and HOT Revenue CO's $ 346,875 $ 43,179 $ 390, Combination Tax and HOT Revenue CO's 6,272,456 6,272,456 $ 346,875 $ 6,315,635 $ 6,662,510 This schedule represents 55.5% allocation of debt service on the 2013 CO's which refunded the issue used to purchase land for the Convention Center and the 2009 CO's issued for development and construction of the Convention Center. Both issues are combination certificates of obligation, they are secured by the full faith and creditof the City of Irvingby a pledge of ad valoremtax as well as from Hotel Occupancy Tax revenues. FY Annual Operating Budget 368

17 Schedule of Hotel Occupancy Tax Year Principal Interest Total $ 346,875 $ 6,315,635 $ 6,662, ,650 6,312,167 6,661, ,200 6,308,504 6,813, ,975 6,299,118 7,192, ,193,525 6,273,243 7,466, ,436,850 6,234,590 7,671, ,577,400 6,189,477 7,766, ,910,725 6,133,929 8,044, ,450,000 6,064,250 8,514, ,855,000 5,941,750 8,796, ,290,000 5,799,000 9,089, ,760,000 5,634,500 9,394, ,210,000 5,446,500 9,656, ,740,000 5,236,000 9,976, ,215,000 4,999,000 10,214, ,670,000 4,738,250 10,408, ,155,000 4,451,038 10,606, ,665,000 4,138,950 10,803, ,210,000 3,800,700 11,010, ,790,000 3,434,488 11,224, ,395,000 3,038,525 11,433, ,045,000 2,611,500 11,656, ,720,000 2,159,250 11,879, ,430,000 1,673,250 12,103, ,185,000 1,151,750 12,336, ,850, ,500 12,442,500 $ 129,145,125 $ 127,267,625 $ 256,412,750 Hotel Occupancy Tax Bonded Indebtedness to Maturity Millions $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $ Principal Interest FY Annual Operating Budget 369

18 Entertainment Venue Debt Service Fund ACTUAL BUDGET ESTIMATED ADOPTED Available Fund Balance $ 1,099,487 $ 1,095,187 $ 1,525,506 $ 1,283,071 Revenues Transfer from HOT Tax Revenues $ 1,383,120 $ 1,301,102 $ 1,301,102 $ 1,353,000 Transfers In 4,500 Interest Income Total Revenues $ 1,387,707 $ 1,301,352 $ 1,301,242 $ 1,353,100 Total Funds Available $ 2,487,194 $ 2,396,539 $ 2,826,748 $ 2,636,171 Expenditures Principal Bonds $ $ 360,000 $ 598,075 $ 703,125 Interest Bonds 957, , , ,621 Agent Fees Bonds 4,500 4,500 4,500 4,500 Total Expenditures $ 961,687 $ 1,305,602 $ 1,543,677 $ 1,670,246 Available Fund Balance $ 1,525,506 $ 1,090,937 $ 1,283,071 $ 965,925 Fund Description: This fund represents the debt service on the Entertainment Venue Private Placement Bonds. These bonds were issued to fund the engineering and design phase of the Entertainment Venue Project. The bonds are paid by the 2% Brimer Tax and are secured by the remaining 7% HotelOccupancy Tax revenues collected by the city. FY Annual Operating Budget 370

19 Schedule of Requirements Entertainment Venue Debt Obligations Series Name of Bond Principal Interest Total 2013 HOT Certificates of Obligation $ 278,125 $ 34,621 $ 312, HOT Revenue Refunding Bonds (Taxable) 425, ,000 1,353,000 $ 703,125 $ 962,621 $ 1,665,746 This schedule represents the debt service on the 2011 Entertainment Venue Private Placement Bond issues, as well as the 44.5% allocation of the 2013 CO that refinanced the issue that purchased the land for the Entertainment Venue. Private placement bonds were issued to fund the engineering and design phase of the Entertainment Venue Project. Although bond issue has a variable interest rate, interest for budget purposes is based on a 4% interest rate. The bonds are secured by the 9% Hotel Tax collectedbythe city. Theses bonds are scheduled to be refinanced in FY as part of the Entertainment Venue development. The budgetwill be adjusted once final terms and interest rates are known. FY Annual Operating Budget 371

20 Schedule of Entertainment Venue Bonded Indebtedness to Maturity * Variable rate estimated at 4% Year Principal Interest* Total $ 703,125 $ 962,621 $ 1,665, ,415, ,840 2,358, ,469, ,695 2,365, ,517, ,261 2,360, ,571, ,600 2,363, ,628, ,028 2,364, ,687, ,526 2,366, ,749, ,320 2,364, ,495, ,600 2,046, ,555, ,800 2,046, ,620, ,192 2,050, ,685, ,298 2,049, ,750, ,400 2,047, ,820, ,400 2,047, ,895, ,813 2,049, ,970,000 78,691 2,048, $ 25,531,800 $ 9,062,085 $ 34,593,885 Brimer HOT Tax Bonded Indebtedness to Maturity Millions $10 $8 $6 $4 $2 $ Principal Interest* FY Annual Operating Budget 372

21 Municipal Drainage Utility Debt Service Fund ACTUAL BUDGET ESTIMATED ADOPTED Available Fund Balance $ 232,251 $ 323,751 $ 290,251 $ 290,251 Revenues Transfer from MDU Fund $ 210,399 $ 213,799 $ 213,799 $ 349,810 Interest Income 200 Total Revenues $ 210,399 $ 213,999 $ 213,799 $ 349,810 Total Funds Available $ 442,650 $ 537,750 $ 504,050 $ 640,061 Expenditures Other $ 500 $ $ $ Principal Bonds 80,000 85,000 85, ,000 Interest Bonds 71, , , ,810 Total Expenditures $ 152,399 $ 213,799 $ 213,799 $ 349,810 Available Fund Balance $ 290,251 $ 323,951 $ 290,251 $ 290,251 Fund Description: This fund represents the debt service for Municipal Drainage Utility Revenue Bonds. These bonds will finance major drainage projects within thecity'sdrainage systemand will reduce the likelihood offloodingduringmajor rain events. FY Annual Operating Budget 373

22 Schedule of Requirements Municipal Drainage Utility Revenue Bonds Series Name of Bond Principal Interest Total 2010 MDU Revenue Bonds $ 85,000 $ 68,599 $ 153, MDU Revenue Bonds 95, , ,211 $ 180,000 $ 169,810 $ 349,810 This schedule represents the debt service payments due on each outstanding Municipal Drainage Utility revenue bond issued during the current fiscal year. FY Annual Operating Budget 374

23 Schedule of Municipal Drainage Utility Bonded Indebtedness to Maturity Year Principal Interest Total $ 180,000 $ 169,810 $ 349, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,000 92, , ,000 82, , ,000 71, , ,000 60, , ,000 49, , ,000 36, , ,000 23, , ,000 15, , ,000 8, ,313 $ 4,535,000 $ 1,970,772 $ 6,505,772 Thousands MDU Revenue Bonded Indebtedness to Maturity $800 $600 $400 $200 $ Principal Interest FY Annual Operating Budget 375

24 Solid Waste Services Debt Service Fund ACTUAL BUDGET ESTIMATED ADOPTED Available Fund Balance $ $ 2,673 $ $ 7,518 Revenues Bond Proceeds $ 27,161,699 $ $ $ Transfer from Economic Development 256,857 1,516,755 1,516,755 1,507,232 Interest on Investments 875 Total Revenues $ 27,418,556 $ 1,517,630 $ 1,516,755 $ 1,507,232 Total Funds Available $ 27,418,556 $ 1,520,303 $ 1,516,755 $ 1,514,750 Expenditures Principal Bonds $ $ 150,000 $ 150,000 $ 155,000 Interest Bonds 256,857 1,358,737 1,358,737 1,351,732 Loan Commitment 27,000,000 Bond Issuance Costs 161,699 8, Agent Fees Bonds Total Expenditures $ 27,418,556 $ 1,516,755 $ 1,509,237 $ 1,507,232 Available Fund Balance $ $ 3,548 $ 7,518 $ 7,518 Fund Description: The Solid Waste Services Interest and Sinking Fund was established in FY to pay the debt obligations of the Solid Waste Services Fund, including the refinancing of Heritage Crossing project debt which is secured by a pledge of sanitation revenues to the General Fund. FY Annual Operating Budget 376

25 Schedule of Requirements Solid Waste Services Revenue Debt Obligations Series Name of Bond Principal Interest Total 2012 SWS Private Placement Special Revenue $ 155,000 $ 1,351,732 $ 1,506,732 $ 155,000 $ 1,351,732 $ 1,506,732 This schedule represents the debt service payments due on the outstanding Solid Waste Services revenue bonds for the upcoming fiscal year. FY Annual Operating Budget 377

26 Schedule of Solid Waste Services Revenue Bonded Indebtedness to Maturity Year Principal Interest Total $ 155,000 $ 1,351,732 $ 1,506, ,000 1,344,493 1,504, ,140,000 1,340,621 2,480, ,195,000 1,283,783 2,478, ,250,000 1,227,977 2,477, ,305,000 1,169,602 2,474, ,370,000 1,111,695 2,481, ,430,000 1,044,679 2,474, ,500, ,898 2,477, ,570, ,848 2,477, ,645, ,815 2,481, ,720, ,708 2,477, ,800, ,384 2,477, ,885, ,324 2,478, ,970, ,678 2,476, ,065, ,295 2,478, ,160, ,860 2,476, ,260, ,988 2,475, ,365, ,748 2,475, $ 28,945,000 $ 16,189,125 $ 45,134,125 SWS Revenue Bonded Indebtedness to Maturity Millions $10 $8 $6 $4 $2 $ Principal Interest FY Annual Operating Budget 378

27 PID #1/TIF #3 Bridges of Las Colinas Debt Service Fund ACTUAL BUDGET ESTIMATED ADOPTED Available Fund Balance $ $ $ $ 300,840 Revenues Bond Proceeds $ $ $ 393,990 $ Transfer from PID #1/TIF #3 Operating Fund Interest on Investments Total Revenues $ $ $ 393,990 $ Total Funds Available $ $ $ 393,990 $ 300,840 Expenditures Principal $ $ $ $ Interest 93, ,400 Agent Fees Bonds 175 Total Expenditures $ $ $ 93,150 $ 248,575 Available Fund Balance $ $ $ 300,840 $ 52,265 Fund Description: This interest and sinking fund was created to track debt service payments related to the 2013A Certificates of Obligation issued to finance public improvements related to the Bridges of Las Colinas development. FY Annual Operating Budget 379

28 Schedule of PID #1/TIF #3 Bonded Indebtedness to Maturity Year Principal Interest Total $ $ 248,400 $ 248, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,000 89, , ,000 68, , ,000 46, , ,000 23, ,400 $ 8,750,000 $ 3,443,925 $ 12,193,925 Millions PID #1/TIF #3 Bridges of Las Colinas Bonded Indebtedness to Maturity $4 $3 $2 $1 $ Principal Interest FY Annual Operating Budget 380

29 PID #2/TIF #4 Debt Service Fund ACTUAL BUDGET ESTIMATED ADOPTED Available Fund Balance $ $ $ $ 104,474 Revenues Bond Proceeds $ $ $ 136,822 $ Transfer from PID #2/TIF #4 Operating Fund Interest on Investments Total Revenues $ $ $ 136,822 $ Total Funds Available $ $ $ 136,822 $ 104,474 Expenditures Principal $ $ $ $ Interest 32,348 86,263 Agent Fees Bonds 175 Total Expenditures $ $ $ 32,348 $ 86,438 Available Fund Balance $ $ $ 104,474 $ 18,036 Fund Description: This interest and sinking fund was created to track debt service payments related to the 2013B Certificates of Obligation issued to finance public improvements related to the Ranchview development. FY Annual Operating Budget 381

30 Schedule of PID #2/TIF #4 Bonded Indebtedness to Maturity Year Principal Interest Total $ $ 86,263 $ 86, ,263 86, ,000 86, , ,000 85, , ,000 83, , ,000 80, , ,000 76, , ,000 72, , ,000 69, , ,000 65, , ,000 59, , ,000 54, , ,000 48, , ,000 41, , ,000 35, , ,000 28, , ,000 22, , ,000 15, , ,000 7, ,813 $ 3,210,000 $ 1,136,935 $ 4,346,935 Million PID #2/TIF #4 Ranchview Bonded Indebtedness to Maturity $4 $3 $2 $1 $ Principal Interest FY Annual Operating Budget 382