Debt Summary

Pasco County utilizes 10 debt service funds to account for the repayment of long-term financing utilized by the County, including but not limited to franchise revenue bonds, capital revenue bonds, and bank loans. Pasco County voters approved four General Obligation Bonds in the November 2018 general election. We have borrowed nearly $230 million since June 2019.

The FY 2024 debt service expenses are budgeted at $27,204,097 or just 1.29 percent of FY 2024 net budgeted expenditures. Debt service expenses are $1,665,235, or 6.52%, more than FY 2023 budgeted debt service. The general debt service for non-enterprise, non-general obligation debt service funds is budgeted at $15,023,694 which is $494,739 more than the FY 2023 non-enterprise, non-general obligation debt service. This increase in debt service is driven primarily by the full year's worth of interest payments on the Half-Cent Sales Tax Bonds, series 2022C.

Tommytown Debt Service Fund

This bond, issued in February 1, 2007, had an original maturity date of August 1, 2026. During Fiscal Year 2022, this bond has been defeased by paying off the remaining principal of the loan to save the County $718,000 in interest. The $13,000,000 Variable Fixed Rate Note from the U.S. Department of Housing and Urban Development was used for the Tommytown Neighborhood revitalization project.

Guaranteed Entitlement Refunding Revenue Bonds, Series 2013A Fund

This $9,985,000 bond, issued July 10, 2013, matures October 1, 2033. The FY 2024 debt service totals $703,750 for principal and interest. This bond partially refunded the Guaranteed Entitlement Revenue Refunding Bonds Series 2003, originally issued in 1989 to fund new voting machines; new Tax Collector building on U.S. 19; purchase land for the park expansion and the Land O’ Lakes Community Center expansion; purchase a facility for the Health Department and Community Development Division; and provide funding for the Geiger Pond Stormwater drainage project. The guaranteed first and second entitlements of State Revenue Sharing revenues are pledged to support this debt issue.

Guaranteed Entitlement Refunding Revenue Bonds, Series 2013B Fund

This is the second of two issues used to refund the Guaranteed Entitlement Revenue Refunding Bonds Series 2003 that was originally issued in 1989. The Guaranteed Entitlement Refunding Revenue Bonds Series 2013A Series was the other portion of the refunding effort. The $15,310,000 bank loan, issued December 1, 2013, matures October 1, 2033. Debt service for FY24 totals $1,032,554 for principal and interest. To take advantage of lower interest rates, the bond was refunded with a bank loan rather than a bond issue. The guaranteed first and second entitlements of State Revenue Sharing revenues are pledged to support this debt issue. As explained above, capital projects were completed with the prior bond which this issue is refunding; no additional capital projects were funded with this loan.

Half Cent Sales Tax Series 2013A Fund

This $33,785,000 bond, issued July 10, 2013, matures October 1, 2033. Debt service totals $1,619,500 for principal and interest for FY24. This bond refunded the Half-Cent Sales Tax Revenue Bonds, Series 2003 issued to fund the expansion of two Sheriff’s office facilities; the New Port Richey Judicial Center; and the expansion, renovation, or construction of various parks, libraries, animal service facilities, data centers, and fire stations. The Series 2013A bond issue was refunded in FY22 with the Half-Cent Sales Tax Refunding Revenue Bonds, Series 2022A and 2022B. There are $3,241,125 remaining for Principal and Interest payments due by December 1, 2023 to pay off the bond. Capital projects were completed with the prior bond which this issue is refunding; no additional capital projects were funded with this loan.

Half-Cent Sales Tax Revenue Refunding Bond, Series 2022A Fund

This $5,847,000 bond, issued May 25, 2022, matures October 1, 2028. This bond refunded a portion of the Series 2013A bond to save $750,512 in interest payments by September 30, 2029. The debt service payments total $181,455 for Fiscal Year 2024.

Half-Cent Sales Tax Revenue Refunding Bond, Series 2022B Fund

This $15,839,000 bond, issued May 25, 2022, matures October 1, 2028. This bond refunded a portion of the Series 2013A bond to save $1,253,737 in interest payments by September 30, 2034. The debt service payments total $653,529 for Fiscal Year 2024.

Half-Cent Sales Tax Revenue Refunding Bond, Series 2022C Fund

This $34,805,000 bond, issued June 23, 2022, matures October 1, 2042. This bond is being used to support the design, construction, reconstruction, renovation, expansion, improving and equipping the County jail facility located in Land O' Lakes. The total cost of the project is expected to be $197,000,000 with funding from the Half-Cent Sales Tax Revenue Refunding Bond, Series 2022C as well as the GO Bond issuances, Series 2019A and 2021B. The debt service payments are interest only in the amount of $1,740,250 for Fiscal Year 2024.

Tourist Development Tax Revenue Bond Series 2021 Fund

This $16,970,000 bond, issued August 26, 2021, matures on October 1, 2035. This bond refunded a $20,105,000 bank loan that was issued on September 1, 2017. The funds are used to build the Wiregrass Sports Complex ($15 million) and Gulf access infrastructure such as boat ramps ($5 million). Since the Wiregrass Sports Complex will be operated by a third party for a profit, this will be a taxable loan. The County Commission increased the Tourist Development Tax from 4% to 5% in FY 2022 to enable it to service this new debt. The refunding will save $1,732,383 in interest payments by October 1, 2035. The debt service payments total $1,489,776 for Fiscal Year 2024.

Park Capital Improvement Non-Ad Valorem Revenue Bond Fund

This $7,920,000 revenue bond, issued May 21, 2020, matures October 1, 2029. This ‘bond” is actually a private placement loan with an interest rate of 1.1%. Debt service totals $891,380 for principal and interest for Fiscal Year 2024. The outstanding balance at year-end will be $5,165,000. A portion of the requested funding ($5,200,000) will be used to complete the original design at SRDP. This includes the construction of six additional multi-purpose sports fields, one concession/restroom building, and completing the remainder of the parking lot. The remaining funds ($2,665,000) will be used at SunWest Park to build-out the remainder of the Park to include a multi-use trail; one concession/restroom/shower facility; two pavilions; paving of the north parking lot; erecting an observation tower; installing an additional knee wall/parking staircase; and purchasing cabana style lounge chairs and umbrellas. The County has pledged legally available non-ad valorem revenue in a Covenant to Budget and Appropriate (CB&A) to service the debt.

Penny for Pasco Public Safety Bond Fund

A $15,080,000 bank loan was secured on April 20, 2016 to fund the upgrade to the critical public safety radio communication technology and infrastructure including conversion to a digital system and constructing radio transmission towers. The loan fully matures October 1, 2024. The FY 2024 debt service is $1,896,850, and the outstanding balance at year-end will be $1,885,000. The County has pledged the 20 percent public safety allocation of the 45 percent of the County’s Penny for Pasco sales tax allocation as the primary security for the repayment of this loan.

The water and wastewater system is a capital-intensive system requiring periodic upgrades to accommodate modernization, growth, and regulations. The total FY 2024 debt service for this fund totals $14,968,363.80, for principal and interest, which is a 0.5% increase from FY 2023. The County has three outstanding bonds for which it is currently paying principal and interest.

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The Series 2015 Bonds were issued July 22, 2015 for the purpose of refunding the Series 2011 Solid Waste Disposal and Resource Recovery Bonds. The Series 2015 Bonds mature October 1, 2024. The FY 2024 debt service on this $18,170,000 bond issue totals $4,855,071 for principal and interest. The net present value of $3,211,000 savings will be realized over the life of the bond

The County has secured the following ratings for its bond issues from the three Wall Street Rating Agencies.

Pasco County is not subject to a legally imposed debt limit but makes careful use of debt to finance major capital projects, such as new buildings, renovations, infrastructure improvements, and major equipment purchases, per the self-imposed policies detailed below.

The County finances major capital equipment and facilities based on their expected economic lives. It is not prudent to spend operating cash on assets that have lives greater than five years. This is because long lived capital items are paid for gradually over their useful lives by an annual depreciation charge to the current accounting period. In addition, the recent refinanced loans and bonds have low interest rates that make debt financing economical and wise compared to cash financing.

The State of Florida has not imposed a legal debt limit on local governments. The County, however, follows two self-imposed guidelines and policies in relation to debt management as illustrated below.

General obligation (GO) bonds allow counties to borrow money to pay for capital improvements and projects that benefit the entire community. Repayment of GO bonds is guaranteed by the “full faith and credit” of the local government and the ability to raise taxes to pay the debt service via a separate voter approved debt levy.

In November 2018 voters approved four General Obligation Bonds authorizing the County to borrow up to $240 million. The proceeds from the four bonds will be used to expand the Detention Center; build four new stations in underserved areas, rebuild five of the stations in the worst condition, and re-locate the Fire Training Center to the central part of the County; invest in park amenities; and modernize seven branch libraries. These are the first general obligation bonds the County has procured since 1988.

Since June 2019 the County borrowed $231.5 million which will allow it to complete the projects stated above. With the County’s taxable assessed value approaching $48 billion, the borrowed funds installments puts the GO Bond debt at 0.49% of taxable assessed values.