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 debt service requirements compare?

Can we afford to issue additional debt?

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

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

Pledged Revenue Capacity

State Revenue SharingFirst & 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

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

Revenue HistorySales Tax Revenues

FY 1996 - 2005

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

FY 96 FY 97 FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05

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%

Revenue HistoryState Revenue Sharing

FY 1996 - 2005

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

FY 96 FY 97 FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05

+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

Revenue HistoryCommunication Services

TaxFY 2002 - 2006

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

FY 02 FY 03 FY 04 FY 05 FY 06

1,327,441 1,437,050 1,450,462 1,513,293 1,515,000

Projected RevenuesTransportation Impact Fees

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

FY 07 FY 08 FY 09 FY 10 FY 11

FY 07 FY 08 FY 09 FY 10 FY 11

Projected Impact Fees 9,222,771 9,756,702 10,294,728 10,827,151 11,268,509

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

FY 07 FY 08 FY 09 FY 10 FY 11

Source: Tindale Oliver Impact Fee Report 2005

TRANSPORTATION FUNDING SOURCES OF REVENUE

(EXISTING AND 5 YEAR PROJECTIONS)

$97,782,904TOTAL PROJECTED GROSS REVENUES

$47,493,1402$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 9TH CENT GAS TAX

9,050,2184,073,965

1,655,000745,000

CONSTITUTIONAL GAS TAX 7th CENT GAS TAX

$19,905,01215,393,574

$3,640,0002,815,000

LOCAL OPTION GAS TAX 2nd 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

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 Moody’s or Standard & Poor’s to determine Citrus County’s position with respect to existing debt and the ability to issue additional debt.

1 Methodology from GFOA, Benchmarking and Measuring Debt Capacity

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

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 3,865,000 356,6492001B 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 5,156,578 374,5202004B Capital Improvement Bonds:Citrus County Resource Center 2,715,530 229,511

Total Revenue Bonds $25,867,108 $2,934,663

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

Proposed Debt Annual Debt

Amount Service

Sheriff’s 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

Total Debt Principal Debt

Service

Revenue Bonds $ 25,867,108 $ 2,934,663Notes Payable 4,214,987 739,975Proposed Debt 5,770,000 459,800

Total Debt $ 35,852,095 $ 4,134,438

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 expendituresModerate 7% - 15% of expendituresHigh > 15% of expendituresSource: 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

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

Debt Outstanding1

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 <$1,000Moderate $1,000-$2,500High >$2,500Source: 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

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%Moderate 3% - 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

Questions & Answers