The Debt Obligations Transparency page provides key financial information required by the Texas Comptroller of Public Accounts as part of the Transparency Stars program. This information helps residents better understand the City's finances and debt management.
Understanding City Debt
The City uses debt to fund large-scale projects like roads, parks, drainage, and public facilities. Debt is repaid over time, often through tax revenues or specific fees. The City may also refinance (refund) debt to save money when conditions are favorable.
Types of City Debt
General Obligation (GO) Bonds
- Funded by property taxes (Ad Valorem taxes).
- Require voter approval before issuance.
- Used for major capital improvements like roads and public buildings.
Combination Tax & Revenue Certificates of Obligation (CO Bonds)
- Similar to GO Bonds but may also be backed by other City revenues.
- Used for infrastructure projects while complying with revenue use restrictions.
Revenue Bonds
- Funded by revenue from specific sources (e.g., utility fees).
- Not backed by general tax revenues.
- Typically used for large projects tied to a specific service.
Lease Purchases
- Used to finance equipment or assets over time.
- Payments include both principal and interest.
Legal Debt Limits
- There is no state-imposed debt limit.
- The City's ability to take on debt depends on its ability to levy and collect taxes.
- The City’s maximum tax rate is $2.25 per $100 assessed valuation (as per the City Charter).
- The 2024-25 tax rate is $0.684800 per $100 assessed valuation.