Debt Information

The City of Canyon (City) outstanding debt consists of direct obligation debt issued by the City and secured by levied taxes or other revenues and includes four different types as follows: 

General Obligation Bonds

General Obligation Bonds provide funds for the acquisition and construction of major capital equipment, facilities, and infrastructure as well as the refunding of prior debt issues. General obligation Bonds are direct obligations issued on a pledge of the general taxing power for the payment of the debt obligations of the City. General Obligation Bonds require the City to calculate, at the time other ad valorem taxes are levied each fiscal year, the rate of tax required to provide sufficient ad valorem tax revenue to pay interest and principal per the related debt service schedule for the debt issue. The City is in compliance with this requirement.

General Obligation Bonds have been rated A+ by Standard & Poor’s.

Water and Sewer Revenue System Certificates of Obligation

Certificates of Obligation are used to finance the acquisition and construction of major capital improvements and infrastructure for the water and sewer system and related facilities. These Certificates are secured by a lien on and pledge of direct annual ad valorem tax levied by the City sufficient to provide for the payment of principal of and interest on all obligations payable in whole or in part from ad valorem taxes, which tax must be levied within limits prescribed by law. Additionally, the Certificates are payable from and secured by a pledge of surplus net revenues of the City's Waterworks and Sewer System, as provided in the Ordinance.

Management of the City believes that it is in compliance with all significant financial requirements as of September 30, 2021.

Water and Sewer Revenue Bonds have been rated A+ by Standard & Poor’s.

Public Property Finance Act Contracts

Public Property Finance Act Contracts are used to finance the acquisition of major capital improvements and equipment. These Finance Contracts are secured by a lien on and pledge of direct annual ad valorem tax levied by the City sufficient to provide for the payment of principal of and interest on all obligations payable in whole or in part from ad valorem taxes, which tax must be levied within limits prescribed by law. Additionally, the Finance Contracts are payable from and secured by a pledge of other revenues and funds lawfully available to the City for the payments required per the repayment schedule associated with each Finance Contract.

Management of the City believes that it is in compliance with all significant financial requirements as of September 30, 2021.

Lease-Purchase/Lease-Revenue Obligations

Lease-Purchase/Lease-Revenue Obligation are used to finance the acquisition of equipment. These Lease Obligations are secured by a lien on and pledge of direct annual ad valorem tax levied by the City sufficient to provide for the payment of principal of and interest on all obligations payable in whole or in part from ad valorem taxes, which tax must be levied within limits prescribed by law. Additionally, the Lease Obligations are payable from and secured by a pledge of other revenues and funds lawfully available to the City for the payments required per the terms associated with each Lease agreement.

Management of the City believes that it is in compliance with all significant financial requirements as of September 30, 2021.


City of Canyon - Total Outstanding Debt Obligations

As of September 30, 2021


 

 

Fiscal Year 2021

Per Capita Outstanding Debt

City of Canyon – Outstanding Direct Debt:

 

 

General Obligation Bonds

 

 

     Total Tax-Supported Debt Obligations

$       4,819,055

$            295

Waterworks and Sewer System Revenue Obligations

 

 

     Total Revenue-Supported Debt Obligations

$       8,511,149     

$            522

Public Property Finance Act Contracts

 

 

     Total Tax and Other Revenue-Supported Debt Obligations

$       1,518,877

$              93 

Lease Obligations

 

 

     Total Tax and Other Revenue-Supported Lease Obligations

$          396,328

$              24 

     

     Total Outstanding Direct Debt

 

$     15,245,409

 

$            934


Note:  Per Capita figures are based on the City’s 2021 estimated population of 16,316 per Texas Demographer.


HB 1378: Debt Obligation Reporting under Local Government Code Section 140.008

The 84th Legislature passed HB 1378 to increase the transparency of local government debt. Under Local Government Code § 140.008, political subdivisions, including counties, cities, school districts, junior college districts, special purpose districts, and other subdivisions of state government must annually compile their debt obligation data from the preceding fiscal year. 

Detail Debt Information as of 09/30/21: Detailed listing of all outstanding direct debt obligations, tax and revenue supported. Includes purpose, credit rating, outstanding principal amount, debt service, and spent and unspent proceeds issue-by-issue.