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Debt Capacity Update

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?. Affordability Analysis.

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Debt Capacity Update

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  1. Debt Capacity Update

  2. 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?

  3. Affordability Analysis 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.

  4. 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

  5. Pledged Revenue Capacity State Revenue Sharing First & 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

  6. 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

  7. Revenue HistorySales Tax RevenuesFY 1996 - 2005 +7.1% +10.8% +3.7% +.6% +17.3% +5.0% +7.2% +10.7% +5.9% 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

  8. Revenue HistoryState Revenue SharingFY 1996 - 2005 +4.00% +24.62 +5.38% -10.81% +10.05% +.25% +2.91% +7.13 -13.55% 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

  9. Revenue HistoryCommunication Services TaxFY 2002 - 2006 1,327,441 1,437,050 1,450,462 1,513,293 1,515,000

  10. Projected RevenuesTransportation Impact Fees Source: Tindale Oliver Impact Fee Report 2005

  11. TRANSPORTATION FUNDING SOURCES OF REVENUE (EXISTING AND 5 YEAR PROJECTIONS) GAS TAX REVENUES FY 2006 5 YEAR REVENUE FORECAST 1 (FY 2007-2011) LOCAL OPTION GAS TAX 2nd LOCAL OPTION $3,640,000 2,815,000 $19,905,012 15,393,574 1,655,000 745,000 CONSTITUTIONAL GAS TAX 7th CENT GAS TAX 9,050,218 4,073,965 9TH CENT GAS TAX 560,000 3,062,310 GROSS REVENUES $9,415,000 $51,485,079 (239,063) (1,195,315) LESS ANNUAL DEBT SERVICE REQUIREMENTS NET REVENUES $9,175,937 $50,289,764 TRANSPORTATION IMPACT FEES $8,685,000 $47,493,1402 TOTAL PROJECTED GROSS REVENUES $97,782,904 1 Assumes 3% annual gas tax revenue increase. 2 Assumes impact fee revenue increase 3% annually due to growth

  12. 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

  13. 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

  14. Principal Debt Balance Service 9/30/052005-06 1996 Capital Improvement Bonds: Lecanto Building $ 4,560,000 $ 550,406 2001A Capital Improvement Bonds: Courthouse 3,865,000 356,649 2001B 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 5,156,578 374,520 2004B Capital Improvement Bonds: Citrus County Resource Center 2,715,530 229,511 Total Revenue Bonds $25,867,108 $2,934,663 Revenue Bonds

  15. 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

  16. 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

  17. Total Debt Principal Debt Service Revenue Bonds $ 25,867,108 $ 2,934,663 Notes Payable 4,214,987 739,975 Proposed Debt 5,770,000 459,800 Total Debt $ 35,852,095 $ 4,134,438

  18. General Government Debt Service as a % of General Fund Expenditures Estimated 9/30/04 9/30/05 9/30/06 $3,206,794 $57,260,348 $4,208,391 $65,910,516 $4,134,438 $77,577,484 Annual Debt Service General Fund Expenditures = 5.60% = 6.39% = 5.33% Concept reflects the amount of expenditures used to pay debt service. It is an indicator of budgeting flexibility. Averages: Low < 7% of expenditures Moderate 7% - 15% of expenditures High > 15% of expenditures Source: Standard and Poor

  19. The analysis of debt capacity considers several factors: Measure of debt burden on the community 2. • Debt per capita • Debt as a percentage of personal income

  20. Debt per Capita: Estimated 9/30/04 9/30/05 9/30/06 $33,431,044 136,256 Debt Outstanding1 Estimated Citrus County Population $24,396,143 129,110 $30,082,195 132,635 = $189 = $227 = $245* Averages: Low <$1,000 Moderate $1,000-$2,500 High >$2,500 Source: Standard and Poor 1 Debt Outstanding is the total amount of principal outstanding for Sales Tax and State Revenue Sharing pledged debt * Excludes other units of Local Government

  21. Income per Capita: Estimated 9/30/04 9/30/05 9/30/06 Debt per Capita Personal Income $189 $24,454 $227 $25,432 $245 $26,449 = .77 % = .89 % = .93 %* This ratio reflects the citizens ability to pay the debt service. Averages: Low < 3% Moderate 3% - 6% High > 6% Source: Standard and Poor * Excludes other units of Local Government

  22. Questions & Answers

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