2023 Annual Comprehensive Report

Combined Enterprise System Revenue Refunding Bonds, were used to terminate the associated 2005B interest rate swap agreement. On December 7, 2006, the City issued $49,480,000 Series 2006 Refunding Combined Enterprise System Revenue Bonds at a fixed rate of 4.0% to 5.25% with a final maturity in 2025. These bonds were issued to defease a portion of Combined Enterprise System Bond Series 1998A, 2001A and 2003A. The amounts were refunded at $13,820,000, $19,290,000 and $19,150,000, respectively for a total defeasance of $52,260,000. The net proceeds of $54,971,117 (after payment of $506,736 in underwriting fees, accrued interest, call premium and other issuance cost) were placed in escrow in an irrevocable trust to provide for all future debt service payments on the old certificates. As a result, the liabilities for a portion of the 1998A, 2001A and 2003A Series Revenue Bonds have been removed from the Water Resources Fund. The proceeds of these bonds were used for improvements to the City’s water and sanitary sewer system and other issue costs. The City has pledged 100% of future water and sewer customer revenues, net of specified operating expenses to the payment of and as security for the Revenue Bonds in the amounts shown below specifically to cover annual debt service through 2052. This pledge relates to all Combined Enterprise Revenue bonds outstanding, issued for the purpose of making water and sewer system improvements. Certain financial covenants are contained in the revenue bond order, among the most restrictive of which provide that the City maintain a long-term debt service coverage ratio, as defined, of not less than 1.50. Pledged revenues exceeded operating expenses by $63,427,802 to provide a coverage ratio of 2.26 at June 30, 2023. The City believes it was in compliance with all such covenants during Fiscal Year 2022-23. Revenue Bonds/Anticipation Notes Debt Service Requirements to Maturity are:

Business-Type Activities Annual Requirements

Fiscal Year

Principal

Interest

Total

2023-24 2024-25 2025-26 2026-27 2027-28 2029-33 2034-38 2039-43 2044-48 2049-53

$

66,000,451 14,758,683 $ $ 13,855,000 11,900,800 14,915,000 11,280,513 12,630,000 10,600,113 13,740,000 10,026,413 54,145,000 41,700,138 47,495,000 31,307,263 55,665,000 22,658,200 58,410,000 11,362,975

80,759,134 25,755,800 26,195,513 23,230,113 23,766,413 95,845,138 78,802,263 78,323,200 69,772,975

28,230,000 30,439,625 $ 365,085,451 167,804,721 $ $ 532,890,172 2,209,625

(1) Includes Direct Placement Bond Anticipation Notes of $50,795,451, principal scheduled to mature in FY24, and includes estimated interest of $2,168,583.

40bb