Financial Transparency and Debt Reporting
Metrics related to outstanding debt and bond issuance include the following:
- Bond Rating: The target for General Obligation bonds and Certificates of Obligation is to maintain the current AAA rating, which is the highest possible rating on the scale.
- Responsible Borrowing:
- Net Bonded Debt Per Capita - represents the outstanding debt backed by property taxes to the city's population.
- Net Bonded Debt vs Taxable Valuation - represents the outstanding debt backed by property taxes to the taxable value.
Net bonded debt per capita represents the total outstanding debt secured by property taxes, net of debt service funds and self-supporting debt, divided by the city's population.
This ratio provides an indicator on the debt burden for residents compared to other communities, although tax backed debt is also supported by commercial taxpayers.
The ratio of net bonded debt to taxable value expresses the City’s ability to generate tax revenue from all taxable property to support outstanding debt. Approximately 30% of the City’s taxable value comes from commercial development, which reduces the burden on residential taxpayers. Based on the 2022 tax roll, the fiscal year 2023 net bonded debt to assessed value ratio is 0.98%.
Information about the City’s outstanding debt is available in the FY23 adopted budget, and the Annual Comprehensive Financial Report (ACFR), both of which can be found on the City’s website. The annual budget document provides a forward-looking picture of the City’s debt including principal outstanding, annual principal and interest payments and a breakdown of outstanding bonds by funding source. Planned debt issues are summarized in the annual budget and information about projects to be funded from bond proceeds is included in the Five Year Capital Improvement Program.
The ACFR shows the City’s financial and debt position as of the most recent fiscal year end, with discussion and analysis of activity during the fiscal year and an overview of long term debt in compliance with GASB requirements- distinguished between governmental and business-type activities. The ACFR provides discussion about capital asset construction, long term liabilities and net position and summarizes the activity that took place during the fiscal year. Additional information regarding federally funded programs can be found in the Single Audit Report.
Additionally, the Texas Comptroller’s Annual Local Debt Report can be found on the Financial Transparency page- in compliance with HB 1378. This information is updated annually within 180 days of the most recent fiscal year and follows the format prescribed by the comptroller’s office. For each issue, information is available about the bond issues that are outstanding:
- Total tax and revenue supported debt
- Original principal issued & outstanding
- Sources for repayment (property tax, other sources)
- Final maturity date
- Official stated purpose for the debt obligation
- Bond ratings