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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.

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Presentation on theme: "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."— Presentation transcript:

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 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. Affordability Analysis

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 Calculation20 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 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

7 Revenue History Sales Tax Revenues FY 1996 - 2005 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 +5.9% +10.7% +7.2% +5.0% +17.3% +.6% +3.7% +7.1% +10.8%

8 Revenue History State Revenue Sharing FY 1996 - 2005 +5.38% +7.13 +24.62 +4.00% -10.81% -13.55% +.25% +10.05% +2.91% 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 History Communication Services Tax FY 2002 - 2006 1,327,441 1,437,050 1,450,462 1,513,293 1,515,000

10 Pledged Revenue Capacity Gas Taxes Annual Revenue Estimate$ 9,415,000 Available for Annual Debt Service 6,974,074 1 Current Annual Obligation for Debt Service as Pledged Revenue 239,063 Available to Pledge 6,735,011 Debt Issuance Capacity$84,533,733 2 1 1.35 times coverage 2 20 year amortization @ 5% interest

11 Revenue History Gas Tax Revenues FY 2000 - 2006 +37.69% +6.96%+3.12% +10.59% +.24% +.66% * Effective 01/01/2006

12 Revenue History Impact Fee Revenues FY 2000 - 2006 -1.12% +28.61% +40.48% +33.19% +30.24% +64.30%

13 Projected Revenues Transportation Impact Fees Source: Tindale Oliver Impact Fee Report 2005

14 TRANSPORTATION FUNDING SOURCES OF REVENUE (EXISTING AND 5 YEAR PROJECTIONS) $97,782,904TOTAL PROJECTED GROSS REVENUES $47,493,140 2 $8,685,000TRANSPORTATION IMPACT FEES $50,289,764$9,175,937NET REVENUES (1,195,315)(239,063) LESS ANNUAL DEBT SERVICE REQUIREMENTS $51,485,079$9,415,000GROSS REVENUES 3,062,310560,000 9 TH CENT GAS TAX 9,050,218 4,073,965 1,655,000 745,000 CONSTITUTIONAL GAS TAX 7 th CENT GAS TAX $19,905,012 15,393,574 $3,640,000 2,815,000 LOCAL OPTION GAS TAX 2 nd LOCAL OPTION 5 YEAR REVENUE FORECAST 1 (FY 2007-2011) REVENUES FY 2006 GAS TAX 1 Assumes 3% annual gas tax revenue increase. 2 Assumes impact fee revenue increase 3% annually due to growth

15 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 Moodys or Standard & Poors to determine Citrus Countys position with respect to existing debt and the ability to issue additional debt. 1 Methodology from GFOA, Benchmarking and Measuring Debt Capacity

16 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

17 Revenue Bonds Principal Debt Balance Service 9/30/05 2005-06 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

18 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

19 Proposed Debt Annual Debt Amount Service Sheriffs 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

20 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

21 General Government Debt Service as a % of General Fund Expenditures Annual Debt Service General Fund Expenditures $4,208,391 $65,910,516 = 6.39% 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 9/30/05 9/30/06 $4,134,438 $77,577,484 = 5.33% $3,206,794 $57,260,348 = 5.60% 9/30/04 Estimated

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

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

24 Income per Capita: Debt per Capita Personal Income $227 $25,432 =.89 % This ratio reflects the citizens ability to pay the debt service. Averages: Low< 3% Moderate3% - 6% High> 6% Source: Standard and Poor 9/30/05 9/30/06 =.93 %* $245 $26,449 $189 $24,454 =.77 % 9/30/04 Estimated * Excludes other units of Local Government

25 Questions & Answers

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