Debt Service Schedules

2021-2022 Annual Budget

The Debt Service Fund provides for principal and interest payments for the City’s general obligation bonds, certificates of obligation, tax notes, capital leases and fiscal agents fees as they become due and payable.


Property tax rates and levies are required to be computed and collected in order to provide sufficient funds to pay debt principal and interest as it comes due Although general obligation bonds and certificates of obligation are the predominate form of debt issuance, tax notes and lease purchase agreements (which allow for purchases of capital equipment) are also included in this section.


As an operational policy, the annual general obligation debt service should not exceed 50% of the total tax rate. Once the debt service portion of the tax rate exceeds a 50% pro-rata share, a city's ability to adjust the maintenance and operations portion of the tax levy is hindered. A large debt burden creates inflexibility in the tax rate and places further stress upon other sources of revenue. Therefore, a balance between the maintenance and operations portion and the debt portion of the tax rate should be maintained in order to adapt to changes in the tax base and operational needs.


For the 2020-2021 fiscal year, the debt service portion of the tax rate is $0.135055 per $100 of assessed value. This represents 18.1% of the total adopted rate of $0.746200 per $100 of assessed value. Debt principal payments from ad valorem tax revenue are paid annually while interest payments on tax-supported debt are paid semi-annually. The City has not issued notes to finance operating deficits.

Debt Management

Debt Issuance – The City issues debt for the purpose of purchasing land or right-of-way and/or improvements to land, for construction projects to provide for the general good, or for capital equipment. The City will uphold all related bond covenant agreements associated with bond issues. Bond issues are conducted after consultation with an outside financial advisor. The City maintains good communications with bond rating agencies, financial advisors, independent auditors, investors, and citizens regarding its financial condition.


Debt Limit – The State of Texas limits the total ad valorem tax rate to $2.50 per $100 valuation. The City Charter limits the ad valorem tax rate to $1.50 per $100 valuation of taxable property within the City, which includes the Interest & Sinking rate. The City of White Settlement adopted rate of $0.746200 falls well below this limit.


Bond Ratings - Standard & Poor’s – AA-


These ratings directly affect the cost of debt. Hilltop Securities is the City’s financial advisor. The financial advisor coordinates the debt issuance for the City and determines the City’s capacity to authorize, issue, and service debt. The financial advisor negotiates the sale of debt instruments. When a bid for debt instruments is accepted by the City, the financial advisor directs the closing of the sale.

DEBT SERVICE FUND OUTSTANDING DEBT

DEBT SERVICE FUND DEBT SCHEDULES

WATER & SEWER FUND OUTSTANDING DEBT

WATER & SEWER FUND DEBT SCHEDULES

WATER & SEWER CAPITAL BOND DEBT SCHEDULES

EDC FUND OUTSTANDING DEBT & SCHEDULE