2024 Annual Comprehensive Report

a portion of the liability for the 2005 Series Revenue Bonds was removed from the Water Resources Fund. The proceeds of these bonds, along with the $3,200,000 received from the origination of Series 2012B federally taxable 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 were 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 2054. 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 $67,894,933 to provide a coverage ratio of 2.18 at June 30, 2024. The City believes it was in compliance with all such covenants during Fiscal Year 2023-24. Revenue Bonds/Anticipation Notes Debt Service Requirements to Maturity are:

Business-Type Activities Annual Requirements

Total

Fiscal Year

Principal

Interest

2024-25 2025-26 2026-27 2027-28 2028-29 2030-34 2035-39 2040-44 2045-49 2050-54

$ 16,070,000

$ 19,090,468

$

35,160,468 59,205,332 31,438,811 31,975,951 29,158,474 132,090,870 119,375,298 119,371,013 105,464,338 61,186,922 724,427,477

40,517,063 (1)

18,688,269 16,708,811 16,030,951 15,278,474 66,955,870 53,520,298 39,951,013 22,244,338 6,741,922

14,730,000 15,945,000 13,880,000 65,135,000 65,855,000 79,420,000 83,220,000 54,445,000

$ 449,217,063

$ 275,210,414 $

(1) Includes Direct Placement Bond Anticipation Notes of $23,602,063, principal scheduled to mature in FY26, and includes estimated interest of $2,392,915.

6. Leases The City has entered into various lease agreements. These lease agreements qualify as other than short-term leases under GASB 87 and, therefore, have been recorded at the present value of the future lease payments as of the date of their inception.

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