Debt Capacity Update. What is our outstanding debt? How much remaining capacity is in our pledged...
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Transcript of Debt Capacity Update. What is our outstanding debt? How much remaining capacity is in our pledged...
Debt Capacity Update
What is our outstanding debt?
How much remaining capacity is in our pledged revenues?
How does our total debt outstanding and annual debt service requirements compare?
Can we afford to issue additional debt?
A comprehensive analysis of debt capacity provides assurance that the amount of debt is affordable. When the County issues bonds, we enter into a long-term commitment that requires us to make timely principal and interest payments over the term of the bond.
Affordability Analysis
Pledged Revenue Capacity
Sales Tax 2005/06 Sales Tax Revenues $ 7,661,400
Coverage for Additional Debt Test 1.3
Available for Annual Debt Service $ 5,893,384
Current Annual Obligation for Debt Service as Pledged Revenue $ 3,382,015
Available to Pledge $ 2,511,369
Length of Debt for Capacity Calculation 20 years
Interest Rate 5.00%
Additional Debt Capacity $31,521,165
Pledged Revenue Capacity
State Revenue SharingFirst & Second Guaranteed Entitlement $ 589,560
Coverage for Additional Debt Test 1.3
Available for Annual Debt Service 453,507
Current Annual Obligation for Debt Service as Pledged Revenue 292,623
Available to Pledge 160,884
Length of Debt for Capacity Calculation 20 years
Interest Rate 5.00%
Additional Debt Capacity $2,019,317
Pledged Revenue Capacity
Communication Services Tax
2006 Communication Services Tax $ 1,515,000
Coverage for Additional Debt Test 1.35
Available for Annual Debt Service $ 1,122,222
Length of Debt for Capacity Calculation 20 years
Interest Rate 5.00%
Additional Debt Capacity $ 14,085,443
Revenue HistorySales Tax Revenues
FY 1996 - 2005
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
FY 96 FY 97 FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05
3,782,595 4,007,501 4,436,563 4,755,169 4,991,940 5,854,495 5,887,301 6,105,461 6,766,579 7,245,223
+5.9% +10.7%+7.2%
+5.0%
+17.3%+.6%
+3.7%
+7.1%+10.8%
Revenue HistoryState Revenue Sharing
FY 1996 - 2005
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
FY 96 FY 97 FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05
+5.38%
+7.13
+24.62+4.00%
-10.81%
-13.55%+.25%
+10.05%
+2.91%
2,428,847 2,602,027 3,242,774 3,372,595 3,008,119 2,600,487 2,607,015 2,682,958 2,952,517 3,111,299
Revenue HistoryCommunication Services
TaxFY 2002 - 2006
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
FY 02 FY 03 FY 04 FY 05 FY 06
1,327,441 1,437,050 1,450,462 1,513,293 1,515,000
Projected RevenuesTransportation Impact Fees
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
FY 07 FY 08 FY 09 FY 10 FY 11
FY 07 FY 08 FY 09 FY 10 FY 11
Projected Impact Fees 9,222,771 9,756,702 10,294,728 10,827,151 11,268,509
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
FY 07 FY 08 FY 09 FY 10 FY 11
Source: Tindale Oliver Impact Fee Report 2005
TRANSPORTATION FUNDING SOURCES OF REVENUE
(EXISTING AND 5 YEAR PROJECTIONS)
$97,782,904TOTAL PROJECTED GROSS REVENUES
$47,493,1402$8,685,000TRANSPORTATION IMPACT FEES
$50,289,764$9,175,937NET REVENUES
(1,195,315)(239,063)LESS ANNUAL DEBT SERVICE REQUIREMENTS
$51,485,079$9,415,000GROSS REVENUES
3,062,310560,000 9TH CENT GAS TAX
9,050,2184,073,965
1,655,000745,000
CONSTITUTIONAL GAS TAX 7th CENT GAS TAX
$19,905,01215,393,574
$3,640,0002,815,000
LOCAL OPTION GAS TAX 2nd LOCAL OPTION
5 YEAR REVENUE FORECAST 1
(FY 2007-2011)
REVENUES FY 2006
GAS TAX
1 Assumes 3% annual gas tax revenue increase.
2 Assumes impact fee revenue increase 3% annually due to growth
Debt Ratios
Various debt ratios are used to present and analyze the debt position and capabilities of Citrus County.1
Using guidelines established by bond rating agencies such as Moody’s or Standard & Poor’s to determine Citrus County’s position with respect to existing debt and the ability to issue additional debt.
1 Methodology from GFOA, Benchmarking and Measuring Debt Capacity
The analysis of debt capacity considers several factors:
1. Debt Service Obligations
• Existing debt service requirements • Debt service as a percentage of General Fund
expenditures
Revenue Bonds Principal Debt
Balance Service 9/30/05 2005-06
1996 Capital Improvement Bonds:Lecanto Building $ 4,560,000 $ 550,406 2001A Capital Improvement Bonds:Courthouse 3,865,000 356,6492001B Capital Improvement Bonds:Courthouse 5,810,000 533,099 2003 Capital Improvement Bonds:Lecanto Jail 4,620,000 1,011,290 2004A Capital Improvement Bonds:Citrus County Resource Center 5,156,578 374,5202004B Capital Improvement Bonds:Citrus County Resource Center 2,715,530 229,511
Total Revenue Bonds $25,867,108 $2,934,663
Notes Payable Principal Debt Balance Service 9/30/05 2005-06
Courthouse Annex $1,624,036 $292,623
County-Wide Radio System 2,590,951 447,352
Total Notes Payable $4,214,987 $739,975
Proposed Debt Annual Debt
Amount Service
Sheriff’s Building $5,000,000 $398,400
Floral City Library 770,000 61,400
Total Proposed Debt $5,770,000 $459,800
20 year amortization @ 5% interest
Total Debt Principal Debt
Service
Revenue Bonds $ 25,867,108 $ 2,934,663Notes Payable 4,214,987 739,975Proposed Debt 5,770,000 459,800
Total Debt $ 35,852,095 $ 4,134,438
General Government Debt Service as a % of General
Fund Expenditures
Annual Debt Service
General Fund Expenditures
$4,208,391
$65,910,516
= 6.39%
Concept reflects the amount of expenditures used to pay debt service. It is an indicator of budgeting flexibility.
Averages:Low < 7% of expendituresModerate 7% - 15% of expendituresHigh > 15% of expendituresSource: Standard and Poor
9/30/05 9/30/06
$4,134,438
$77,577,484
= 5.33%
$3,206,794
$57,260,348
= 5.60%
9/30/04 Estimated
The analysis of debt capacity considers several factors:
2. Measure of debt burden on the community• Debt per capita • Debt as a percentage of personal income
Debt Outstanding1
Estimated Citrus County Population
$30,082,195
132,635
= $227
1 Debt Outstanding is the total amount of principal outstanding for Sales Tax and State Revenue Sharing pledged debt
Averages:Low <$1,000Moderate $1,000-$2,500High >$2,500Source: Standard and Poor
Debt per Capita: 9/30/05 9/30/06
= $245*
$33,431,044
136,256
$24,396,143
129,110
9/30/04
= $189
Estimated
* Excludes other units of Local Government
Income per Capita:
Debt per Capita
Personal Income
$227
$25,432
= .89 %
This ratio reflects the citizens ability to pay the debt service.
Averages:Low < 3%Moderate 3% - 6%High > 6%Source: Standard and Poor
9/30/05 9/30/06
= .93 %*
$245
$26,449
$189
$24,454
= .77 %
9/30/04 Estimated
* Excludes other units of Local Government
Questions & Answers