1. CITY OF Friendswood
FINANCIAL HEALTH
AT A
GLANCE

2. CITY OF Friendswood Bonds (credit) S&P Rating: AA-
Last G.O. Bonds Election: ($24M)
Issued: $9.6M, $8.8M, $5.6M
Total Current G.O. Debt: $41.1M
FY19 G.O. Debt Service Payments: $3.2M

3. CITY OF Friendswood FY19 Adopted Budget
Revenue: $58.6M & Expenditures: $58.3M
2018 Net Taxable Property Value: $3.4B
Tax Rate: $0.5324/$100 valuation
M&O Rate - $ & Debt Service - $0.0952

4. CITY OF Friendswood Restricted Revenue $19.6M
Property Taxes for Debt Service Payments
Sales Taxes for Streets Improvement & FDEDC
Court Security/Technology Fees
Bond Construction Funds
Park Land Dedication & Trust Funds
Vehicle Replacement Internal Lease Fees
Utility Service & Impact Fees for Debt Service Payments

5. Effective Tax Rate (ETR)
CITY OF Friendswood
Effective Tax Rate (ETR)
Tax rate which generates the same amount of revenue on properties taxed in the current and prior years
Property Value
ETR
2018 ETR = $0.5324/$100 valuation

6. CITY OF Friendswood Property Tax Exemptions 20% Homestead
Over 65 Exemption - $25K
Disabled Person - $25K
Disabled Veterans & Surviving Spouses
Friendswood 2018 Property Tax Exemptions - $743M

7. CITY OF Friendswood Legal Debt Margin Tax Rate = $1.50/$100 valuation
Annual Debt Service Obligation = $44.7M
Translation:
City’s tax base could support G.O. bond issuances resulting in a tax rate up to $1.50 and $44.7M in additional annual principal & interest payments.

8. CITY OF Friendswood Pay-As-We-Go Theory
Using cash to fund operating and capital expenditures
Pros:
Limited/No additional debt
Less future tax burden
Cons:
No generational equity
Front-end tax and/or revenue generation
Reduced services
Project funding limitations

9. Summary of Capacity Tax Rate Impact Analyses
CITY OF Friendswood

10. CITY OF Friendswood
Tax Bill Impact