General Obligation Bonds provide funds for the acquisition and construction of major capital equipment, facilities, and infrastructure.

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 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.

General Obligation Bonds have been rated AAA by Standard & Poor’s and Fitch.

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, 2023.

Water and Sewer Revenue Bonds have been rated AAA by Standard & Poor’s and Fitch.

Carrollton has a “take or pay” contract to purchase potable water on wholesale basis.

Overlapping debt is calculated based on Carrollton’s Rate of Flow setting as a percent of all wholesale customers applied to total outstanding DWU debt multiplied by the percentage of the DWU system applicable to wholesale customer activities.

Debt numbers are taken from the DWU Wholesale Rate Study.

Carrollton has a contractual obligation to pay its pro rata share of all operating and debt related expenses based on its percentage of flows to the CRWS.

Overlapping debt is calculated based on the City’s percentage of flows to CRWS.

TRA is a November 30th year end.