In an effort to be transparent and accountable to our citizens, the City of Carrollton is posting summary information about its outstanding debt.
The information below shows debt obligations as of September 30, 2013 with subsequent events through January16, 2014. No additional updates have been made after January 16, 2014.
General Obligation Bonds and Certificates of Obligation
At September 30, 2013, general obligation bonds and certificates of obligation currently outstanding were as follows:
General obligation bonds and certificates of obligation provide funds for the acquisition and construction of major capital equipment and facilities. General obligation bonds are direct obligations issued on a pledge of the general taxing power for the payment of the debt obligations of the City. General obligation bonds and certificates of obligation require the City to compute, at the time other taxes are levied, the rate of tax required to provide (in each year bonds are outstanding) a fund to pay interest and principal at maturity. The City is in compliance with this requirement.
The 2002 Tax and Golf Course Surplus Revenue Certificates of Obligation constitute direct tax obligations of the City payable from ad valorem taxes levied, within the limits prescribed by law, against all taxable property within the City and are additionally payable from and secured by a pledge of surplus net revenues of the City’s Golf Course as provided in the ordinances authorizing the Certificates. In December 2013, subsequent to year end, the City called all the remaining certificates of obligation. These certificates of obligation were repaid from available cash balances in the General Fund creating an internal loan for $1,440,000 due from the Golf Course Enterprise Fund.
Revenue bonds are used to finance the acquisition and construction of major capital improvements for the water and sewer system and related facilities. These revenue bonds constitute special obligations of the City solely secured by a lien on and pledge of the net revenues of the water and sewer system.
The revenue bonds are collateralized by the revenue of the water and sewer system and the various special funds established by the bond ordinances. The ordinances provide that the revenue of the system is to be used first to pay operating and maintenance expenses of the system and second to establish and maintain the revenue bond funds. Remaining revenues may then be used for any lawful purpose. The ordinances also contain provisions which, among other items, restrict the issuance of additional revenue bonds unless the special funds noted above contain the required amounts and certain financial ratios are met. Management of the City believes that it is in compliance with all significant financial requirements as of September 30, 2013.
At September 30, 2013, revenue bonds currently outstanding are as follows:
Bonds Authorized and Unissued
At September 30, 2013, the City had $27,080,211 in general obligation bonds which were authorized and unissued. On November 6, 2013, subsequent to year end, a bond election was held and an additional $75,000,000 of general obligation bonds were authorized by the voters.
Debt Transparency Pledge
City’s pledge to post on the entity website, information about the proposed bond package and existing debt.
For more information on the most current General Obligation and Revenue Bonds, visit the Treasury’s webpage.
City of Carrollton, 1945 E. Jackson Road, Carrollton, Texas 75006 | Tel: (972) 466-3000 | Site Map
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