Debt Capacity Update

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Debt Capacity Update
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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?
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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
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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
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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
Calculation 20 years Interest Rate
5.00 Additional Debt Capacity
2,019,317
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Pledged Revenue Capacity Communication Services
Tax
2006 Communication Services Tax
1,515,000 Coverage for Additional Debt
Test 1.35 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
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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
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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
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Revenue HistoryCommunication Services TaxFY
2002 - 2006
1,327,441 1,437,050
1,450,462 1,513,293
1,515,000
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Pledged Revenue Capacity Gas Taxes
Annual Revenue Estimate
9,415,000 Available for Annual Debt Service
6,974,0741 Current Annual Obligation for Debt
Service as Pledged Revenue
239,063 Available to Pledge
6,735,011 Debt Issuance Capacity 84,533,7332
1 1.35 times coverage 2 20 year amortization _at_
5 interest
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Revenue HistoryGas Tax RevenuesFY 2000 - 2006
37.69
.24
10.59
6.96
3.12
.66
Effective 01/01/2006
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Revenue HistoryImpact Fee RevenuesFY 2000 - 2006
64.30
30.24
33.19
40.48
28.61
-1.12
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Projected RevenuesTransportation Impact Fees
Source Tindale Oliver Impact Fee Report 2005
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TRANSPORTATION FUNDING SOURCES OF REVENUE
(EXISTING AND 5 YEAR PROJECTIONS)
5 YEAR REVENUE FORECAST 1 (FY 2007-2011)
REVENUES FY 2006
GAS TAX
19,905,012 15,393,574
3,640,000 2,815,000
LOCAL OPTION GAS TAX 2nd LOCAL OPTION
9,050,218 4,073,965
1,655,000 745,000
CONSTITUTIONAL GAS TAX 7th CENT GAS TAX
3,062,310
560,000
9TH CENT GAS TAX
51,485,079
9,415,000
GROSS REVENUES
(1,195,315)
(239,063)
LESS ANNUAL DEBT SERVICE REQUIREMENTS
50,289,764
9,175,937
NET REVENUES
47,493,1402
8,685,000
TRANSPORTATION IMPACT FEES
97,782,904
TOTAL PROJECTED GROSS REVENUES
1 Assumes 3 annual gas tax revenue increase. 2
Assumes impact fee revenue increase 3 annually
due to growth
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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
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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

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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
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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
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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 _at_ 5 interest
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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
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General Government Debt Service as a of General
Fund Expenditures
Estimated
9/30/05 9/30/06
9/30/04
4,208,391 65,910,516
4,134,438 77,577,484
3,206,794 57,260,348
Annual Debt Service General Fund Expenditures
6.39
5.33
5.60
Concept reflects the amount of expenditures used
to pay debt service. It is an indicator of
budgeting flexibility.
Averages Low - 15 of expenditures High 15 of
expenditures Source Standard and Poor
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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

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Debt per Capita
Estimated
9/30/05 9/30/06
9/30/04
33,431,044 136,256
Debt Outstanding1 Estimated Citrus County
Population
30,082,195 132,635
24,396,143 129,110
227
245
189
Averages Low 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
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Income per Capita
Estimated
9/30/05 9/30/06
9/30/04
Debt per Capita Personal Income
227 25,432
245 26,449
189 24,454
.89
.93
.77
This ratio reflects the citizens ability to pay
the debt service.
Averages Low
6 Source Standard and Poor
Excludes other units of Local Government
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Questions Answers
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