Debt capacity update
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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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Debt capacity update

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?


Debt capacity update

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.


Pledged revenue capacity sales tax

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


Pledged revenue capacity state revenue sharing

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 Calculation20 years

Interest Rate 5.00%

Additional Debt Capacity $2,019,317


Pledged revenue capacity communication services tax

Pledged Revenue Capacity Communication Services Tax

2006 Communication Services Tax $ 1,515,000

Coverage for Additional Debt Test1.35

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


Revenue history sales tax revenues fy 1996 2005

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


Revenue history state revenue sharing fy 1996 2005

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


Revenue history communication services tax fy 2002 2006

Revenue HistoryCommunication Services TaxFY 2002 - 2006

1,327,441 1,437,050 1,450,462 1,513,293 1,515,000


Projected revenues transportation impact fees

Projected RevenuesTransportation Impact Fees

Source: Tindale Oliver Impact Fee Report 2005


Transportation funding sources of revenue existing and 5 year projections

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


Debt ratios

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


The analysis of debt capacity considers several factors

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


Revenue bonds

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


Notes payable

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


Proposed debt

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


Total debt

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


General government debt service as a of general fund expenditures

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

Moderate7% - 15% of expenditures

High> 15% of expenditures

Source: Standard and Poor


The analysis of debt capacity considers several factors1

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


Debt per capita

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


Income per capita

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%

Moderate3% - 6%

High> 6%

Source: Standard and Poor

* Excludes other units of Local Government


Questions answers

Questions & Answers


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