TABLE OF CONTENTS
PAGE
Overview
Debt Management Program ............................................................................................. 1 Debt Issued During Fiscal Year 2021 .......................................................................... 1 Debt Program Work Plan for Fiscal Year 2022 .......................................................... 2 Debt Administration ................................................................................................... 3 Debt Management Projects ....................................................................................... 3 Debt Management Policies ............................................................................................... 5 Citywide Debt Service ........................................................................................................ 6 Rating Agency Overview/Actions ..................................................................................... 9 Debt Financing Team ......................................................................................................... 9 Trustee Activity .................................................................................................................. 10 Investment Activity ............................................................................................................ 11 Debt Detail Report ................................................................................................................... 12 Comparative Statistics
Municipal Financial Ratio Analysis: Fresno vs. California Top 10 by Population ............ 18 Peer Analysis to Largest 10 Cities ...................................................................................... 18 Debt Coverage
Airport Enterprise .............................................................................................................. 19 Water Enterprise ................................................................................................................ 20 Wastewater Enterprise ...................................................................................................... 21 Appendix - Ratings History
Lease Revenue Bonds ..................................................................................................... 23 Airport Revenue Bonds ................................................................................................... 23 Water Revenue Bonds ..................................................................................................... 24 Wastewater (Sewer) Revenue Bonds ............................................................................ 24 CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2021 Overview
This section of the report provides an overview of the Debt Management Program, Debt Management Policies, Rating Agency Relations and Credit Maintenance, Composition of the Debt Financing Team, and Trustee activity during the year.
The City has a variety of financing tools at its disposal, with each one having its own benefits that may work best for a particular financing. Short-term debt options include Tax and Revenue Anticipation Notes, Commercial Paper, Bond Anticipation Notes, and Lines of Credit. Long-term debt options included voter approved General Obligation Bonds, Revenue Bonds, Loans, and Capital Leases. Each tool is discussed in detail in the City’s Debt Management Policies. The Annual Debt Report does not include discussions on City’s obligation for pension and other post-employment benefits.
A. Debt Management Program
Debt Management, a section within the Finance Department, is responsible for managing both the debt issuance process and subsequent debt administration for all City borrowings. This section of the report provides an overview of debt issuance in fiscal year 2021, the debt program work plan in fiscal year 2022, debt administration, debt management projects that have been completed, are currently underway, or are planned for fiscal year 2022.
1. Debt Issued During Fiscal Year 2021
Fiscal year 2021 debt issuance totaled $30.0 million, composed of the following:
• Equipment lease purchases of $7.06 million placed directly with Banc of America Public Capital Corp. for street sweepers and fire vehicles and smart parking meters; • $8.9 million drawn down from the Drinking Water State Revolving Loan Fund for the various loans to the Water Division from the California State Water Resources Control Board; and, • $20.7 million drawn down from the Clean Water State Revolving Loan Fund for the recycled water distribution system loan to the Sewer Division from the California State Water Resources Control Board.
• On November 3, 2020, the City issued $17.145 million in Lease Revenue Bonds to construct a new Animal Services Center.
• On April 1, 2021, a loan was executed between the City's Water Division and the Solid Waste Division, whereby $3,711,500 was loaned to the Solid Waste Division for the joint purchase of a facility to bring all Utilities services that can be merged into one facility. The term of the loan will be 5 years from the Effective Date of the loan, or April 1, 2026 and will accrue interest at a rate equal to the City's pooled rate. The Solid Waste Division shall make principal payments in the amount of 1/10th of the loan amount and interest payments twice per year on October 1 and April 1 of each fiscal year.
CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2021 1 • On June 29, 2021, a loan was executed between the City's Sewer Operations Fund and the General Fund, whereby $10 million was loaned to the General Fund for the purchase of a local motel for the purpose of housing for the City's homeless population, as well as providing rehabilitation and property management services. The term of the loan will expire on June 30, 2022 and will accrue interest at a rate equal to the City's pooled rate, which was 1.7806% as of the Effective Date of the Loan Agreement.
• Due to the COVID-19 pandemic and associated passenger traffic losses, the City's Airports Department became concerned that it would have difficulty meeting its debt coverage requirements in fiscal year 2021. To mitigate these concerns, Airports management decided to use approximately $4.8 million of the $12.9 million in Coronavirus Aid, Relief, and Economic Security Act (CARES) revenues it received as "surplus revenues" per requirements in the Airport Bond Indenture. These funds, along with other Airports revenues, were deposited into a prepayment escrow account with its Trustee. The effect of taking this action is that the fiscal year 2021 debt service required to be paid from operating revenues goes down to zero, creating no need for a coverage calculation during fiscal year 2021 and thereby satisfying the debt service rate covenant. Debt Management has assisted Airport staff with successfully completing this defeasance.
2. Debt Program Work Plan for Fiscal Year 2022
New Bonds - Debt Management staff continues to look at existing debt to find opportunities to save interest expense. Staff will be working with the Airport Department on issuing new bonds to expand the Airport facility by adding a new wing to the terminal.
New Loans - Debt Management staff continues to assist Water Division staff with a detailed review of the documentation relating to the loans that may be issued in fiscal year 2022.
New Leases - The City has budgeted for new lease payments in fiscal year 2022 totaling $6.8 million to fund approximately $0.2 million in vehicles and $6.6 million for a new Citywide Enterprise Management System (both financials and human resources). The City currently has two Master Leases: one with Dell Financial Corporation for computers and Banc of America Public Capital Corp. for all other equipment. In addition to leases, the City has entered into a Power Purchase Agreement with PG&E to fund replacement of all City streetlights with LED bulbs, and a separate Power Purchase Agreement with Alliance Funding Solutions to upgrade electrical and install solar at City Hall and the City's Municipal Service Center. Payments due on both Power Purchase Agreements are based on savings generated by the replacement. If savings are less than payments due, the difference is forgiven.
CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2021 2 3. Debt Administration
After debt has been issued, Debt Management is responsible for administering the debt portfolio.
Section I.E of this report, Debt Financing Team, provides a detailed discussion of debt administration tasks performed by Debt Management staff.
New reporting requirements were established in fiscal year 2015 by the California Debt and Investment Advisory Commission (CDIAC) of the California State Department of the Treasury requiring the filing of a Report of Proposed Debt Issuance by any agency that is increasing debt, followed up with a Report of Final Sale. These reporting requirements were codified on September 12, 2016 through California Senate Bill 1029 (SB 1029). In the past, issuers of the original debt instruments were required to file these reports, and borrowers of the debt from the issuer were not required to report. These requirements make it imperative that Debt Management staff be involved in any and all loan transactions that the City is considering.
4. Debt Management Projects
In addition to debt issuance and administration, Debt Management staff serves in a financial advisory role to other City departments and works on other projects as necessary. Various projects and administration efforts are described below and on the following pages:
Water 2010 Series A-1 Bond Defeasance - The City defeased of all of the Water 2010 Series A-1 Bonds in fiscal year 2021. Debt Management worked with Water Management staff to complete this transaction on December 9, 2020. This defeasance will result in annual savings to the Water Division of approximately $7.85 million through fiscal year 2024.
Master Equipment Lease Purchase Agreement (MELPA) - The City uses a single lender for all of its equipment financing needs. The current MELPA with Banc of America Public Capital Corp. (BAPCC) will expire on December 31, 2021. Debt Management staff will be putting together a new Request for Proposals (RFP) for a new MELPA.
TEFRA Hearings for Conduit Financings - A Tax Equity and Financial Reform Act (TEFRA) hearing is mandated by the IRS to provide a reasonable opportunity for interested individuals to express their views, either orally or in writing, on the issuance of bonds and the nature of the improvements and projects for which bond funds will be allocated. The TEFRA hearing is held in the jurisdiction in which the facilities constructed by bond proceeds are located, and must be held prior to approval by the agency issuing the bonds.
On December 28, 2018, the IRS released updated rules for noticing TEFRA Public Hearings that allows the City to publish TEFRA Public Hearing notices on the City Clerk's website. Previously, the City had to publish TEFRA Public Hearing notices in the daily newspaper of largest circulation in the project location. In addition to the location of the publication, the IRS reduced the minimum number of days that the notice has to be published from at least 14 days prior to the hearing date to at least 7 days prior to the hearing date. These changes substantially minimize the costs of publication and timing for preparation.
CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2021 3 The City of Fresno held no TEFRA hearings for conduit financing during fiscal year 2021 due to Emergency Orders that shut down all non-essential services in the City of Fresno.
The City does not issue debt for these projects, but assists other agencies that are formed for this specific type of financing by holding a public hearing to hear public comments regarding the project as required by the Act.
State Revolving Loan Activity - On July 15, 2015, the City entered into a 30-year agreement to borrow $195,489,000 from the California State Water Resources Control Board for construction of a new surface water treatment facility in southeast Fresno. The interest rate is fixed at 1.663% for the term of the loan. Principal and interest due in semiannual installments will begin once the project is completed and continue for 30 years. Until completion, interest is due semiannually on the amount received by the City through the interest payment date. As of June 30, 2021, the City has received $177,894,081 in proceeds. This amount is net of $3,000,000 in loan forgiveness by the State Water Resources Control Board. The loan forgiveness was part of the loan agreement with the State. Debt service payments will be funded from revenues of the Water Enterprise. Construction is now complete and annual debt service is $7,262,903.
On August 19, 2015, the City entered into a 30-year agreement to borrow $52,475,049 from the California State Water Resources Control Board’s Clean Water State Revolving Fund for construction of a recycled water distribution system in the southwest quadrant of the City. The interest rate is fixed at
1.0% for the term of the loan. Principal and interest due in semiannual installments will begin once the project is completed and continue for 30 years. Until completion, interest is due semiannually on the amount received by the City through the interest payment date. As of June 30, 2021, the City has received $59,525,038 in proceeds. Debt service payments will be funded from revenues of the Wastewater Enterprise. Once construction is completed, annual debt service is estimated to be $2,028,979.
On April 5, 2016, the City entered into a 30-year agreement to borrow $26,520,000 from the California State Water Resources Control Board for construction of a raw water pipeline to replace the Enterprise Canal as a primary conveyance system for the Northeast Surface Water Treatment Facility.
The interest rate is fixed at 1.6% for the term of the loan. Principal and interest due in semiannual installments will begin once the project is completed and continue for 30 years. Until completion, interest is due semiannually on the amount received by the City through the interest payment date.
As of June 30, 2021, the City has received $21,379,590 in proceeds. Debt service payments will be funded from revenues of the Water Enterprise. Even though the project was not fully completed, the City was required to make a payment of $901,110 during the current fiscal year. Once construction is completed, annual debt service is estimated to be $1,116,533.
On April 5, 2016, the City entered into a 30-year agreement to borrow $65,875,669 from the California State Water Resources Control Board for construction of a pipeline for the Kings River. The interest rate is fixed at 1.6% for the term of the loan. Until completion, interest is due semiannually on the amount received by the City through the interest payment date. As of June 30, 2021, the City has CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2021 4 received $57,605,718 in proceeds. Debt service payments will be funded from revenues of the Water Enterprise. Even though the project was not fully completed, the City was required to make a payment of $2,429,854. Once construction is completed, annual debt service is estimated to be $2,773,546.
On August 23, 2016, the City entered into a 30-year agreement to borrow $75,900,000 from the California State Water Resources Control Board for construction of regional transmission mains to the Southeast Water Treatment Facility. The interest rate is fixed at 1.6% for the term of the loan.
Principal and interest due in semiannual installments will begin once the project is completed and continue for 30 years. Until completion, interest is due semiannually on the amount received by the City through the interest payment date. As of June 30, 2021, the City has received $67,436,972 in proceeds. Debt service payments will be funded from revenues of the Water Enterprise. Even though the project was not fully completed, the City was required to make a payment of $2,826,368.
Once construction is completed, annual debt service is estimated to be $3,195,506.
Airport Bonds - Staff has been working with Airport staff on plans to issue revenue bonds for the purpose of constructing a new wing of the Airport terminal that will be used for international travel.
The new wing will replace a temporary facility that has been used for over 15 years.
B. Debt Management Policies
The City Council adopted the Taxpayer Protection Act on December 3, 2009 in order to institute formal debt financial management policies. The Act was amended on February 25, 2010 and revised again on April 6, 2017 with the latest revision updating language and bringing the policy into compliance with SB 1029. The Debt Management Policies (“Policies”) establish parameters for when and how the City may enter into debt obligations. The Policies permit sufficient flexibility to allow the City to take advantage of opportunities that may arise. Objectives of the Policy are:
• Minimize debt service and issuance costs;
• Provide a scheduling component (planning);
• Maintain access to cost-efficient borrowing;
• Achieve the highest practical credit rating;
• Full and timely repayment of debt;
• Balance use of pay-as-you-go and debt financing;
• Maintain full and complete financial disclosure and reporting; and • Ensure compliance with applicable State and Federal laws.
The primary goal of the Policies is to achieve the highest practical credit ratings and strive to elevate and maintain those ratings in order to sustain cost-effective access to capital markets. In order to CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2021 5 fulfill this goal and these objectives, certain ratios have been identified to quantify the City’s performance relative to direct debt. These measurements are as follows:
• Net Direct Debt (tax-supported General Fund debt, net of self-supporting and revenue anticipation debt) to Assessed Value shall not exceed 3%; • Percentage of Principal on Net Direct Debt Retired in ten years shall average 35%; and • Net Direct Debt as a percentage of General Fund Appropriation shall be less than 10%.
The table below is an update of the table in Section 6 of the Debt Policies.
Key Debt Ratios Description/Trend City of Fresno
FY 2021 Debt
Ratios
Net Direct Debt to Assessed Property Value %
(Favorable Trend=Lower than 3%) 0.07%
% Of Principal Net Direct Debt Retired in Ten Years GF Backed (2020 - 2021) 50.1% (Favorable Trend = Greater than 35%) GF Paid (2020 - 2021) 34.4% Net Direct Debt Service as % of General Fund Appropriations (Favorable Trend = Less than 10%) 7.0%
In addition to this table, an additional quantitative goal stated in the Debt Policies is that the average Percentage of principal on Net Direct Debt Retired in 15 years should be at least 40%. During fiscal year 2021, this percentage was 59.73% on GF Backed Principal and 40.32% on GF Paid Principal.
C. Citywide Debt Service
The graph on the next page illustrates the size of the City’s debt portfolio and the dollar volume of debt issued in each of the last ten years. It should be noted that with the exception of the Utilities Department, the focus has been on paying down debt in the last few years, and not the issuance of new bond debt. Increases in New Issuances between fiscal year 2015 and fiscal year 2018 were due to Water and Sewer Divisions of the Department of Public Utilities borrowing funds from the California State Water Resources Control Board to meet conservation and recycling requirements imposed by the State. The reduction in Business-Type debt in fiscal year 2019 and fiscal year 2020 was due to the defeasance of $132.5 million in fiscal year 2019 of Sewer System Revenue Bonds, Series 2008A, and then the subsequent payoff of $27.3 million in fiscal year 2020. The reduction in Business-Type debt in fiscal year 2021 was due to the defeasance of $27.6 million of all Water System Revenue Bonds 2010 Series A-1. The City issued Lease Revenue Bonds in the amount of $17.1 million in fiscal year 2021 for the purpose of constructing an Animal Services Facility.
CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2021 6 City Debt Portfolio and Debt Issuance History
Fiscal Year 2011-12 through Fiscal Year 2020-21
Outstanding Debt (in Millions)
New Issuances ($ Millions)
General Governmental Business-Type
RDA/Successor New Issuances
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
$0
$200
$400
$600
$800
$1,000
$1,200
$0
$50
$100
$150
$200
$250
$300
General Governmental includes debt that is not Business-Type (paid out of the Water, Sewer and Airports enterprise funds), but is paid by either the General Fund or under special circumstances, Special Revenue Funds like the Gas Tax Fund specifically designated for the payment of debt service.
The City of Fresno’s general obligation debt capacity is spelled out in the City charter, Article XII, Section 1213. The capacity is 20% of the assessed valuation of all property within the boundaries of the City of Fresno. The capacity for fiscal year 2021 is calculated as follows:
Assessed valuation as of 06/30/ 2021 $ 40.9 billion
Debt limit X 20%
City’s Debt Limit $ 8.2 billion
The Debt Limit is specifically related to general obligation debt, which is debt that is issued as a result of an election (voter-approved debt). Debt Limit defines voter-approved debt that could legally be outstanding rather than what the City can afford to issue. The City of Fresno has no voter-approved debt. Additionally, the City has never had total debt outstanding of more than $1.1 billion.
As of June 30, 2021, the City had one general obligation bond, several Lease Revenue Bonds (LRBs), capital loans and capital leases outstanding that are paid in whole or part by the General Fund. The chart on the next page shows only General Fund debt service:
CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2021 7 Period Ending
General Fund Debt Service (in Millions)
LRBs 2002 POBs Leases Loans
20212022202320242025202620272028202920302031203220332034203520362037203820392040204120422043204420452046 $0
$5
$10
$15
$20
$25
$30
$35
$40
$45
Fiscal year 2021 General Fund Debt Service was reduced through normal debt service payments.
The chart below shows all of the City’s debt and the source of funding that backs it:
Citywide Debt Service (in Millions)
Water Enterprise Sewer Enterprise Airport Enterprise
General Government RDA/Successor
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
$0
$15
$30
$45
$60
$75
$90
CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2021 8 Payments in 2047 through 2048 include new loan principal from the State Water Resources Control Board which have been drawn down in part, but cannot be amortized until after all loan proceeds have been drawn or the project has been deemed complete. In the previous chart, they are reflected as due in full at the final maturity date.
D. Rating Agency Overview/Actions
The City’s debt is rated by the three primary rating agencies (Moody’s, Standard & Poor’s, and Fitch).
Below is a scale of the ratings by each agency:
MOODY’S FITCH/S&P
Rating Rating Description Rating Rating Description
Aaa Strongest AAA Highest
Aa1, Aa2, Aa3 Very Strong AA+, AA, AA- Very High
A1, A2, A3 Above Average A+, A, A- High
Baa1, Baa2, Baa3 Average BBB+, BBB, BBB- Good
Ba1, Ba2, Ba3 Below Average BB+, BB, BB- Speculative
B1, B2, B3 Weak B+, B, B- Highly Speculative
Caa1, Caa2, Caa3 Very Weak CCC+, CCC, CCC- High Default Risk The ratings for the City’s General obligation, lease revenue, enterprise debt and the Agency’s tax allocation bonds are summarized in the Appendix. A brief overview of the City’s current general ratings (equivalent to a general obligation bond) is provided in the section below.
YEAR MOODY’S S&P FITCH
Rating Outlook Rating Outlook Rating Outlook
2021 A2 á Stable A+ Stable A Stable
2020 A3 Stable A+ Stable A Stable
2019 A3 Stable A+ Stable A Stable
2018 A3 Stable A+ Stable A Stable
2017 A3 Stable A+ á Stable A Stable
2016 A3 Stable BBB- Stable A á Stable
2015 A3 á Stable BBB- Stable BBB+ Neg
2014 Baa1 â Stable BBB- Stable BBB+ Neg
2013 A3 Neg BBB- â Stable BBB+ â Neg
2012 A3 â Neg BBB â Neg A- â Stable
Arrows indicate an increase ( á) or decrease (â) from the prior rating.
E. Debt Financing Team
The City of Fresno uses several individuals/organizations with expertise in their specific function to manage and administer the debt. Day-to-day administration is completed in-house by City staff, CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2021 9 including the Controller, Assistant Controller, a Principal Accountant in charge of debt administration and an Accountant/Auditor. The Debt Administration section of the Finance Department manages day-to-day activities; including addressing monthly, semi-annual and annual state and federal reporting requirements, reconciling trustee statements, monitoring arbitrage calculations and continuing disclosure, preparing debt sections of the Annual Comprehensive Financial Report, and budgeting for debt.
The City contracts with various banks to provide trustee, paying agent, and escrow agent services.
Selection of the service provider is done through a Request for Qualifications at the time new debt is being considered. Currently, the City uses Bank of New York Mellon Corporate Trust, Wells Fargo Corporate Trust Services, and Bank of America, NA . Annual reporting requirements such as arbitrage calculations and continuing disclosure requirements are completed by Willdan Financial Services in coordination with the Principal Accountant in charge of debt administration. The City has chosen to use outside entities for arbitrage calculation and continuing disclosure reporting in order to have an experienced third party ensure accuracy and integrity of the reports and calculations.
The issuance of new debt can be very complex with many different areas of expertise needed. So, the City of Fresno has chosen to use financing teams consisting of in-house City staff with expertise relating to the projects which are to be funded, along with Finance Department and City Attorney’s Office staff with expertise in their respective fields.
In addition to internal staff, the City engages KNN Public Finance as its expert financial adviser, Orrick Herrington & Sutcliff as its bond counsel, and Schiff Hardin as its disclosure counsel. Underwriters are selected by putting together an underwriting pool through a Request for Qualifications process conducted by the financial adviser. A firm or the firms from that pool which are selected are determined by City staff (with input from the financial adviser) to have the best expertise in the projects that will be financed.
F. Trustee Activity
Trustees provide banking services for debt and act as a conduit between the City of Fresno and their client, the bondholders and/or investors. Debt documentation typically requires that a trustee be selected to hold funds on behalf of the investor in order to ensure that the debt is used for its intended purpose. Although selected and paid for by the City of Fresno, the trustee works for the investors.
The next page contains a list of each trustee and the debt instruments for which they provide services:
CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2021 10 Trustee Debt Instrument
Fees Paid to
Trustee in
FY2021
Interest/ Dividends
Earned in FY2021
Bank of New
York Mellon
Corporate
Trust
Fresno JPFA 1998 Lease Revenue Bonds $35,338 $67,051
1999 Community Facilities District #4
2001 Community Facilities District #5
2002 Pension Obligation Bonds
Fresno Redevelopment Agency 2003 TARB
2003 Community Facilities District #7
Fresno JPFA 2004 Lease Revenue Bonds
Fresno JPFA 2008 Lease Revenue Bonds
Fresno JPFA 2017 Lease Revenue Bonds
Fresno JPFA 2020 Lease Revenue Bonds
All City of Fresno Airport Bonds
All City of Fresno Sewer Bonds
All City of Fresno Water Bonds
Wells Fargo
Corporate
Trust
Fresno JPFA 2001 Lease Revenue Bonds $2,400 $16,690
State Water Resources Control Board Loans
JPFA = Fresno Joint Powers Financing Authority; TARB = Tax Allocation Revenue Bonds G. Investment Activity
While bond funds are held in Trust, the City is encouraged to invest them in a manner that is consistent with the Permitted Investments of the bond transaction and yields a favorable rate of return to maximize proceeds available to the City.
With the payoffs of large Sewer and Water bonds, the purchase of surety policies in lieu of funded reserve funds on new bond issuances, and historically low interest rates, funds available for investment were depleted to the point that locking into investments at current investment rates was no longer considered an option for bond proceeds held in trust. All bond proceeds held in trust are now invested in money market funds earning a very low rate of return.
During fiscal year 2021, $75,177 in interest and dividends was earned on bond proceeds held in trust.
All earnings were used to pay a portion of the debt service on City bonds.
CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2021 11 Debt Detail Report
Below is a schedule of debt that had activity in fiscal year 2021:
Governmental
Revenue and Other Bonds
Taxable Pension Obligation
Bonds 2002
$205,335,000
taxable
Refund 2000 Taxable
Pension Obligation
Bonds
6.46% to
6.55%
02/21/2002 06/01/2029 Repayment of bonds not limited to any special source of City funds. Principal due annually, interest due
semiannually. City uses funds throughout the City
based on full-time employees assigned to funds. For
the General Fund, the City uses dedicated Property
Tax Override (PTO) revenue first, and then other
General Fund revenues to make its portion of the
bond payment. Other citywide revenues make up the
difference between total debt service and the General
Fund portion. During 2021 $15,216,883 of PTO
revenue was used. In addition to PTO revenue, $0 of
General Fund and $970.946 of Enterprise Fund/
Internal Service Fund revenues were used to make
the 2021 debt service payment of 16,187,829
$9,755,000 to
$15,195,000
$ 98,395,000 $ — $ 98,395,000 $ 129,522,956 $ 16,187,829 Fresno Joint Powers
Financing Authority: Lease
Revenue Refunding Bonds
2017 A&B, No Neighborhood
Left Behind (NNLB)
A =
$11,010,000
tax-exempt;
B =
$1,940,000
taxable
Refinance No
Neighborhood Left
Behind Projects
2.93% to
5.00%
05/10/2017 04/01/2023 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement,
primarily Base Rental Payments. Principal due
annually, interest due semiannually. Lease revenue
of $2,961,950 was equal to debt service in 2021.
$2,705,000 to
$2,830,000
5,756.744 (221.744) 5,535,000 5,930,149 2,961,950
Fresno Joint Powers
Financing Authority: Lease
Revenue Refunding Bonds
(Chiller) 2017 A, City Hall
Chiller
A =
$2,710,000
tax-exempt
Refinance City Hall
Chiller
5.00% 05/10/2017 04/01/2024 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement,
primarily Base Rental Payments. Principal due
annually, interest due semiannually. Lease revenue
of $135,500 was equal to debt service in 2021.
$610,000 to
$2,100,000
2,909,970 (199,970) 2,710,000 3,086,000 135,500
Fresno Joint Powers
Financing Authority: Lease
Financing Refunding 2017
A&B, Garage #7, Bee Bldg &
Granite Park
A =
$10,125,000
tax-exempt;
B =
$21,980,000
taxable
Refinance City Hall,
Parking Garage #7,
Fresno Bee Building
and Granite Park
2.93% to
4.16%
05/10/2017 04/01/2031 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement,
primarily Base Rental Payments. Principal due
annually, interest due semiannually. Lease revenue
of $4,428,451 was equal to debt service in 2021.
$1,645,000 to
$2,270,000
19,240,000 0 19,240,000 23,636,673 4,428,451
Fresno Joint Powers
Financing Authority: Lease
Revenue Refunding Bonds
2017 A, Various Capital
Projects
A =
$12,435,000
tax-exempt
Refinance Various
Capital Improvement
Projects
5.000% 05/10/2017 04/01/2035 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement,
primarily Base Rental Payments. Principal due
annually, interest due semiannually. Lease revenue
of $1,143,000 was equal to debt service in 2021.
$40,000 to
$1,785,000
12,079,733 (1,294,733) 10,785,000 16,060,750 1,143,000 Fresno Joint Powers
Financing Authority: Lease
Revenue Bonds 2004 A,B,C,
Various Capital Projects
A =
$15,810,000
tax-exempt;
B =
$8,100,000
tax-exempt;
C =
$28,870,000
taxable
Calcot Project, Fire
Department Projects,
Downtown Parking
Projects, Santa Fe
Depot Project,
Roeding Business
Park Project Area,
other capital projects
5.900% 04/28/2004 10/01/2034 Repayment payable solely by revenues pledged in trust agreement, primarily Base Rental Payments.
Principal due annually, interest due semiannually.
Lease revenue of $1,537,983 was equal to debt
service in 2021.
$935,000 to
$1,400,000
10,634,228 (9,228) 10,625,000 13,666,008 1,537,983
Fresno Joint Powers
Financing Authority: Lease
Revenue Refunding Bonds
(Parks Projects) 2017 A,
Parks Impact Fee Projects
A =
$22,965,000
tax-exempt
Refinance
Improvements to
Various Park Facilities
5.000% 05/10/2017 04/01/2038 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement,
primarily Base Rental Payments. Principal due
annually, interest due semiannually. Lease revenue
of $1,820,063 was equal to debt service in 2021.
$805,000 to
$1,755,000
23,110,242 (2,335,242) 20,775,000 30,952,813 1,820,063 Fresno Joint Powers
Financing Authority: Lease
Revenue Refunding Bonds
2017 A, Police and Fire/
Public Safety
A =
$32,065,000
tax-exempt
Refinance Public
Safety Capital
Improvement Projects
(Police & Fire)
5.000% 05/10/2017 04/01/2039 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement,
primarily Base Rental Payments. Principal due
annually, interest due semiannually. Lease revenue
of $2,552,750 was equal to debt service in 2021.
$1,115,000 to
$2,300,000
31,890,563 (3,015,563) 28,875,000 43,307,000 2,552,750 Debt
Issue Series Purpose Rate
Range Issue Date Maturity
Date Note Annual
Principal
Outstanding
Principal
Issuance
Disc/(Prem)
Accreted Int
Net Principal
Due
Payments to
Maturity
Fiscal Year
2021 Debt
Service
Payment
12 Fresno Joint Powers
Financing Authority: Lease
Revenue Bonds 2020 A,
Animal Services Facility
A =
$17,145,000
tax-exempt
Animal Services
Facility
4.00% to
5.00%
11/03/2020 04/01/2046 Repayment payable solely by revenues pledged in trust agreement, primarily Base Rental Payments.
Principal due annually, interest due semiannually.
Lease revenue of $306,463 was equal to debt
service in 2021.
$375,000 to
$1,075,000
19,842,242 (2,697,242) 17,145,000 27,994,100 306,463 Revenue and Other Bonds Total $ 223,858,722 $ (9,773,722) $ 214,085,000 $ 294,156,449 $ 31,073,989 Notes Payable
HUD: Neighborhood Streets/
Parks
$1,500,000
Loaned
Section 108 Note to
be used for
improvements to
various neighborhood
streets & parks
6.07% to
6.12%
08/08/2002 08/01/2022 Annual principal payments, semiannual interest payments.
$114,000 to
$130,000
251,000 — 251,000 266,606 132,721
Roeding Business Park $2,441,000
Loaned
Loaned from the
California
Infrastructure and
Economic
Development Bank to
be used to complete
the Roeding Business
Park
3.530% 03/18/2004 08/01/2033 Secured by Facility Lease on City Hall Annex. Annual principal payments, semiannual interest payments.
$83,582 to
$131,212
1,396,921 — 1,396,921 1,741,313 134,368
Notes Payable Total $ 1,647,921 $ — $ 1,647,921 $ 2,007,919 $ 267,089 Governmental Total $ 225,506,643 $ (9,773,722) $ 215,732,921 $ 296,164,368 $ 31,341,078 Business-type
Water System Revenue
Bonds (Non-Taxable) 2010
A-1, Water
A-1 =
$66,810,000
tax-exempt
Current Refund 1998
Water Bonds &
improvements to the
Water System
N/A 02/03/2010 06/01/2024 Repayment of bonds solely from revenues derived from the operation of the City Water System, except
connection fees and charges, refundable deposits
and capital contributions. Pledged in parity with the
pledges securing State loans for Water. Principal
payable annually, interest semiannually. Bonds were
fully defeased in fiscal year 2021.
N/A 0 0 0 0 28,405,438
Water System Revenue
Bonds (Taxable Build
America Bonds) 2010 A-2,
Water
A-2 =
$91,340,000
taxable
Improvements to the
Water System
6.50% to
6.75%
02/03/2010 06/01/2040 Repayment of bonds solely from revenues derived from the operation of the City Water System, except
connection fees and charges, refundable deposits
and capital contributions. Pledged in parity with the
pledges securing State loans for Water. Principal
payable annually, interest semiannually. During fiscal
year 2021, a federal Build America Bonds subsidy of
$2,016,534 was received.
$4,090,000 to
$7,715,000
$ 90,241,279 $ 1,098,721 $ 91,340,000 $ 167,310,025 $ 6,097,263 Sewer System Revenue
Bonds 1993 A
A =
$196,280,000
tax-exempt
Rehabilitation and
expansion of the City's
Wastewater Treatment
Facility
4.50% to
4.75%
10/06/1993 09/01/2023 Repayment of bonds solely from revenues derived from the operation of the City Sewer System, except
connection fees and charges, refundable deposits
and capital contributions. Pledged senior to the
pledges of State loans for Sewer. Principal payable
annually, interest semiannually.
$885,000 884,722 278 885,000 944,738 6,233,513
Fresno Joint Powers
Financing Authority: Lease
Revenue Refunding Bonds
2017 A, Convention Center
A =
$4,260,000
tax-exempt
Refinance Convention
Center Improvement
Projects (Phase I)
5.000% 05/10/2017 04/01/2027 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement,
primarily Base Rental Payments. Principal due
annually, interest due semiannually. During 2021, the
City chose to make these lease payments from the
General Fund in the amount of $569,250, which was
equal to debt service in 2021. While the City has the
right to use any unencumbered funding source it
wishes to use for future lease payments, it is
anticipated that General Fund revenues will be used
to make these future payments, which the Authority
will then use to make the debt service payment.
$425,000 to
$540,000
3,147,663 (267,663) 2,880,000 3,404,250 569,250
Debt
Issue Series Purpose Rate
Range Issue Date Maturity
Date Note Annual
Principal
Outstanding
Principal
Issuance
Disc/(Prem)
Accreted Int
Net Principal
Due
Payments to
Maturity
Fiscal Year
2021 Debt
Service
Payment
13 Fresno Joint Powers
Financing Authority: Lease
Revenue Bonds (Conv. Ctr.)
2008 F, Convention Center
F =
$21,410,000
taxable
Refund a portion of
2006 Convention
Center Bonds &
finance various
Convention Center
improvements
6.700% 08/14/2008 04/01/2023 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement,
primarily Base Rental Payments. Principal due
annually, interest due semiannually. During 2021, the
City chose to make these lease payments from the
General Fund in the amount of $2,408,860, which
was equal to the debt service payment in 2021. While
the City has the right to use any unencumbered
funding source it wishes to use for future lease
payments, it is anticipated that General Fund
revenues will be used to make future lease
payments, which the Authority will then use to make
the debt service payment.
$1,370,000 to
$2,175,000
3,540,942 4,058 3,545,000 3,874,305 2,408,860
Fresno Joint Powers
Financing Authority: Lease
Revenue Refunding Bonds
2017 A, Exhibit Hall
Expansion Project Refunding
A =
$11,665,000
tax-exempt
Refinance Exhibit Hall
Expansion Project
5.000% 05/10/2017 04/01/2029 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement,
primarily Base Rental Payments. Principal due
annually, interest due semiannually. Lease revenue
of $1,408,500, which was equal to debt service in
2021. While the City has the right to use any
unencumbered funding source it wishes to use for
future lease payments, it is anticipated that General
Fund revenues will be used to make these future
payments, which the Authority will then use to make
the debt service payment.
$950,000 to
$1,330,000
10,021,659 (961,659) 9,060,000 11,212,250 1,408,500 Fresno Joint Powers
Financing Authority: Lease
Revenue Bonds 1998, Exhibit
Hall Expansion Project
$32,609,535
tax-exempt
Construction of an
exhibit hall.
N/A 09/01/1998 09/01/2028 Current Interest Serial Bonds ($25,395,000) and Capital Appreciation Serial Bonds ($7,214,535).
Repayment payable solely by revenues pledged in
trust agreement, primarily Base Rental Payments
pursuant to a Facilities Lease. Principal due
annually , interest due semiannually. During 2021, the
City chose to make these lease payments from the
General Fund in the amount of $ 750,000, which was
equal to the debt service payment. All remaining
bonds are Capital Appreciation Bonds, so interest is
accreted. While the City has the right to use any
unencumbered funding source it wishes to use for
future lease payments, it is anticipated that General
Fund revenues will be used to make future lease
payments, which the Authority will then use to make
the debt service payment.
$162,405 to
$233,873
$ 4,866,942 $ (3,297,702) $ 1,569,240 $ 6,000,050 $ 750,000 Fresno Joint Powers
Financing Authority: Lease
Revenue Refunding Bonds
2017 A, Stadium Project
A =
$13,510,000
tax-exempt
Refinance
MultiPurpose Stadium
Project
5.000% 05/10/2017 04/01/2031 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement,
primarily Base Rental Payments. Principal due
annually, interest due semiannually. During 2021, the
City chose to make these lease payments from the
General Fund in the amount of $1,372,750, which
was equal to the debt service payment. While the City
has the right to use any unencumbered funding
source it wishes to use for future lease payments, it is anticipated that General Fund revenues will be used
to make future lease payments, which the Authority
will then use to make the debt service payment.
$845,000 to
$1,300,000
11,757,946 (1,207,946) 10,550,000 13,659,500 1,372,750 Fresno Joint Powers
Financing Authority: Lease
Revenue Bonds 2001 A & B,
Stadium Project
A =
$23,615,000
tax-exempt; B
=
$22,235,000
taxable
Acquire and construct
a multipurpose
outdoor stadium
6.93% to
7.03%
06/12/2001 06/01/2031 Repayment payable solely by revenues pledged in trust agreement, primarily Base Rental Payments
pursuant to a Facilities Lease. Principal due annually, interest due semiannually. During 2021, the City
chose to make these lease payments from the
General Fund in the amount of $1,819,360, which
was equal to the debt service payment. While the City
has the right to use any unencumbered funding
source it wishes to use for future lease payments, it is anticipated that General Fund revenues will be used
to make future lease payments, which the Authority
will then use to make the debt service payment.
$925,000 to
$1,700,000
12,763,043 (13,043) 12,750,000 18,174,265 1,819,360 Debt
Issue Series Purpose Rate
Range Issue Date Maturity
Date Note Annual
Principal
Outstanding
Principal
Issuance
Disc/(Prem)
Accreted Int
Net Principal
Due
Payments to
Maturity
Fiscal Year
2021 Debt
Service
Payment
14 Fresno Joint Powers
Financing Authority: Lease
Revenue Refunding Bonds
(Riverside Golf Course) 2017
A, Riverside Golf Course
A =
$1,615,000
tax-exempt
Refinance
Improvements to
Riverside Golf Course
5.000% 05/10/2017 04/01/2038 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement,
primarily Base Rental Payments. Principal due
annually, interest due semiannually. During 2021, the
City chose to make these lease payments from the
General Fund in the amount of $128,938, which was
equal to the debt service payment. While the City has
the right to use any unencumbered funding source it
wishes to use for future lease payments, it is
anticipated that General Fund revenues will be used
to make future lease payments, which the Authority
will then use to make the debt service payment.
$55,000 to
$125,000
1,619,224 (164,224) 1,455,000 2,165,687 128,938
Airport Revenue Bonds 2019,
Airport Parking
$35,000,000
taxable
Construction of a
parking garage
3.45% 05/03/2019 07/01/2048 Bonds privately placed with the California Infrastructure and Development Bank (I-Bank).
Interest rate includes 3.15% charged by the I-Bank
for interest plus 0.30% charged by the I-Bank as a
fee. Repayment of bonds solely from operation of the
City Airport System. Principal due annually, interest
due semiannually.
$779,914 to
$1,801,839
$ 34,243,903 $ — $ 34,243,903 $ 53,144,941 $ 1,950,554
Airport Revenue Refunding
Bonds 2013, Concourse
Expansion
A =
$10,810,000
Non-AMT; B =
$22,820,000
AMT
(Subject to
Alternative
Minimum Tax)
Refund 2000 Airport
Revenue Bonds
4.00% to
5.125%
08/06/2013 07/01/2030 Repayment of bonds solely from operation of the City Airport System. Bond Indenture requires a minimum
$1,600,000 of PFC Contribution toward annual debt
service from Passenger Facility Charges (PFC).
During fiscal year 2021 $1,600,000 of PFC and
$1,163,944 of eligible Airports operation revenues
were used to make the debt service payment.
$1,670,000 to
$5,335,000
$ 23,753,499 $ (238,499) $ 23,515,000 $ 30,260,516 $ 2,763,944 Airport Revenue Bonds 2007,
Consolidated Rental Car
Facility
$22,000,000
taxable
Construction of a
consolidated rental car
facility and related
improvements
5.833% 06/14/2007 07/01/2037 Repayment of bonds solely from operation of the City Airport System. While not required under the Bond
Indenture, Airports uses Customer Facility Charge
(CFC) revenues first to meet the debt payment, and
then uses other permitted revenues to cover any
difference between CFC's and the debt payment.
Principal due annually, interest due semiannually.
During fiscal year 2021 $ 1,569,848 of CFC revenues
was used to fully cover the debt service payment.
$435,000 to
$2,265,000
20,385,000 — 20,385,000 33,177,498 1,569,848
Revenue and Other Bonds Total $ 217,225,822 $ (5,047,679) $ 212,178,143 $ 343,328,025 $ 55,478,218 Notes Payable
Water: Safe-Drinking Water
Program
$51,405,432
Loaned
Contract between the
State Water
Resources Control
Board and the City for
installation of water
meters throughout the
City of Fresno
0.000% 04/10/2012 10/01/2022 No interest loan. Repayment of the loan is funded from revenues of the Water Fund. Pledged in parity
with the pledges securing the 2010 Bonds and other
State loans for Water. Principal due in semiannual
installments of $1,285,136.
$2,570,272 $ 33,413,531 — $ 33,413,531 $ 33,413,531 $ 2,570,272 Water: Safe Drinking Water
Program
$1,946,686
Loaned
Contract between the
State Water
Resources Control
Board and the City to
protect the City's
drinking water
supplies from possible
contaminating
activities (PCA's)
2.292% 07/01/2009 07/01/2031 Repayment of loan is funded from revenues of the Water Fund. Pledged in parity with the pledges
securing the 2010 Bonds and other State loans for
Water. Principal and interest due in semiannual
installments of $60,975.
$61,437 to
$118,501
1,133,223 — 1,133,223 1,281,646 121,950
Water: Safe Drinking Water
Program
$1,245,485
Loaned
Contract between the
State Water
Resources Control
Board and the City for
improvements on the
Enterprise and
Jefferson Canals
2.292% 07/01/2009 01/01/2032 Repayment of loan is funded from revenues of the Water Fund. Pledged in parity with the pledges
securing the 2010 Bonds and other State loans for
Water. Principal and interest due in semiannual
installments of $38,993.
$38,551 to
$75,798
724,101 — 724,101 818,858 77,986
Debt
Issue Series Purpose Rate
Range Issue Date Maturity
Date Note Annual
Principal
Outstanding
Principal
Issuance
Disc/(Prem)
Accreted Int
Net Principal
Due
Payments to
Maturity
Fiscal Year
2021 Debt
Service
Payment
15 Water: Drinking Water State
Revolving Fund Project
1010007-029C
$26,520,000
Loaned
Contract between the
State Water
Resources Control
Board and the City for
construction of the
Friant-Kern Canal
Raw Water Pipeline
1.600% 04/05/2016 07/01/2048 Repayment of loan is funded from the revenues of the Water Fund. Pledged in parity with the pledges
securing the 2010 Bonds and other State loans for
Water. Principal and interest due in semiannual
installments of $450,555.
$579,130 to
$889,256
19,693,403 — 19,693,403 23,580,274 901,110
Water: Drinking Water State
Revolving Fund Project
1010007-028C
$195,489,000
Loaned
Contract between the
State Water
Resources Control
Board and the City for
construction of a
Southeast Surface
Water Treatment
Facility
1.663% 07/15/2015 01/01/2049 Repayment of loan is funded from the revenues of the Water Fund. Pledged in parity with the pledges
securing the 2010 Bonds and other State loans for
Water. Principal and interest due in semiannual
installments of $3,631,452. $3 million of the loan was forgiven by the State Water Resources Control
Board.
$2,360,391 to
$7,352,175
163,753,447 — 163,753,447 189,931,633 7,262,903
Water: Drinking Water State
Revolving Fund Project
1010007-030C
$75,900,000
Loaned
Contract between the
State Water
Resources Control
Board and the City for
construction of a raw
water pipeline to
replace the Enterprise
Canal for the
Northeast Surface
Water Treatment
Facility
1.600% 08/23/2016 01/01/2049 Repayment of loan is funded from the revenues of the Water Fund. Pledged in parity with the pledges
securing the 2010 Bonds and other State loans for
Water. Principal and interest payments due in
semiannual installments of $1,413,184.
$1,810,330 to
$2,696,400
$ 64,787,188 $ — $ 64,787,188 $ 62,979,900 $ 2,826,368
Water: Drinking Water State
Revolving Fund Project
1010007-031C
$65,875,669
Loaned
Contract between the
State Water
Resources Control
Board and the City for
construction of a Kings
River Pipeline
1.600% 04/05/2016 07/01/2048 Repayment of loan is funded from the revenues of the Water Fund. Pledged in parity with the pledges
securing the 2010 Bonds and other State loans for
Water. Principal and interest due in semiannual
installments of $1,214,927. Project is not yet
complete.
$1,562,376 to
$2,404,773
53,186,891 — 53,186,891 57,728,460 2,429,854
Sewer: Clean Water State
Revolving Fund Project
$33,212,590
Loaned
Contract between the
State Water
Resources Control
Board and the City for
construction of a
tertiary treatment
facility
1.000% 10/17/2015 07/12/2046 Repayment of loan solely from all revenues derived from the operation of the City Sewer System, except
connection fees and charges, refundable deposits
and capital contributions. Pledged subordinate to the
pledge securing the 1993 Bonds, and in parity with
the pledge securing State loans for Sewer. Principal
and interest due in semiannual installments of
$1,286,353.
$993,060 to
$1,282,163
28,336,290 — 28,336,290 32,167,465 1,286,353
Sewer: Clean Water State
Revolving Fund Project No.
8061-110
$70,600,000
Loaned
Contract between the
State Water
Resources Control
Board and the City for
construction of a
recycled water
distribution system in
the southwest
quadrant of the City
1.000% 08/19/2015 05/30/2047 Repayment of loan solely from all revenues derived from the operation of the City Sewer System, except
connection fees and charges, refundable deposits
and capital contributions. Pledged subordinate to the
pledge securing the 1993 Bonds, and in parity with
the pledge securing the State loans for Sewer.
Principal and interest due in semiannual installments
to begin once project is completed and continue for
30 years. Until completion, interest is due
semiannually on the amount drawn down through the
interest payment date.
No amortiza-
tion schedule
available until
project is
complete.
59,525.038 — 59,525.038 59,525.038 —
Notes Payable Total $ 424,553,112 $ — $ 424,553,112 $ 461,426,805 $ 17,476,796 Business-Type Total $ 641,778,934 $ (5,047,679) $ 636,731,255 $ 804,754,830 $ 72,955,014 Debt
Issue Series Purpose Rate
Range Issue Date Maturity
Date Note Annual
Principal
Outstanding
Principal
Issuance
Disc/(Prem)
Accreted Int
Net Principal
Due
Payments to
Maturity
Fiscal Year
2021 Debt
Service
Payment
16 Fiduciary
Tax Allocation Refunding
Bonds 2003, Mariposa
Project Area
$5,005,000
tax-exempt
Refund the Agency's
1993 Tax Allocation
Bonds (Mariposa
Project Area)
5.625% 02/01/2012 02/01/2023 Principal is due in annual installments, interest is due semiannually. Repayment of bonds is payable solely
from tax increment revenues allocated by the
Successor Agency to the City of Fresno
Redevelopment Agency's Mariposa Project area. All
such revenues are pledged. Tax increment in
Mariposa Project Area of $436,656 was equal to debt
service in 2021.
$397,000 to
$418,000
813,976 1,024 815,000 884,356 436,656
Tax Allocation Bonds Total $ 813,976 $ 1,024 $ 815,000 $ 884,356 $ 436,656 Notes Payable
RDA: Roeding Business Park $2,118,000
Loaned
Loaned from the
California
Infrastructure and
Economic
Development Bank to
be used to complete
the Roeding Business
Park
3.530% 03/18/2004 08/01/2033 Principal and interest due in annual installments.
Secured by Tax Increment revenue received into the
Roeding Business Park Project area.
$72,519 to
$113,845
$ 1,212,027 $ — $ 1,212,027 $ 1,510,835 $ 116,584
Notes Payable $ 1,212,027 $ — $ 1,212,027 $ 1,510,835 $ 116,584 Fiduciary Total $ 2,026,003 $ 1,024 $ 2,027,027 $ 2,395,191 $ 553,240 Grand Total $ 869,311,580 $ (14,820,377) $ 854,491,203 $ 1,103,314,389 $ 104,849,332 Debt
Issue Series Purpose Rate
Range Issue Date Maturity
Date Note Annual
Principal
Outstanding
Principal
Issuance
Disc/(Prem)
Accreted Int
Net Principal
Due
Payments to
Maturity
Fiscal Year
2021 Debt
Service
Payment
17 Comparative Statistics
Data in the tables below are from fiscal year 2020 Annual Comprehensive Financial Reports. Fiscal year 2021 Annual Comprehensive Financial Reports for all comparative cities were not available as of the date of this publication.
Municipal Financial Ratio Analysis: Fresno vs. California Top 10 by Population Group Medians (Most Recent Available)
Moody’s Ratings
Selected Medians Aa – CA 10 A3–Fresno
General Fund Net Position as % of Revenues 47.08% 21.97% Direct Net Debt as % of Assessed Value 1.03% 0.97%
Total Assessed Value (in thousands) $178,454,847 $38,558,581 Assessed Value Per Capita $168,516 $70,650
Population Estimates 1,058,976 545,769
Per Capital Income (Estimated) $60,274 $45,487
All California Top 10 in Population cities except for the City and County of San Francisco are in the Aa range.
Peer Analysis to Largest 10 Cities
Metric Median City of Fresno Ranking
General Fund Net Position % of Revenues 32.4% 22.0% 8th Unassigned General Fund Net Position % of Revenues 8.3% 9.6% 2nd Direct Net Debt (in thousands) $1,689 $375 8th
Direct Net Debt Per Capita $1,676 $687 8th
Debt Burden 99.5% 108.5% 4th
Per Capital Income $58,795 $45,487 5th
Assessed Value Per Capita $163,216 $70,650 10th
Ranking: 1st is the highest and 10th is the lowest of the largest 10 cities in California ( Good , Average , Not Good ).
Glossary of Terms
Direct Net Debt: Total Debt less any Pension Bonds Outstanding.
Assessed Value: Total Assessed Valuation within the boundaries of the City.
Debt Burden: Direct Net Debt as a percentage of Revenues.
CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2021 18 Debt Coverage
Airport Enterprise
(in thousands) Fiscal Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Operating Revenues (1) $ 18,804 $ 19,876 $ 21,216 $ 21,802 $ 22,976 $ 24,500 $ 25,891 $ 27,308 $ 26,789 $ 33,470 Less Operating Expenses (2) 14,200 14,322 14,262 14,428 14,934 16,117 17,355 18,701 19,962 20,626 Other Available Funds (3) — 51 95 350 359 368 377 386 395 — Net Revenues $ 4,604 $ 5,605 $ 7,049 $ 7,724 $ 8,401 $ 8,751 $ 8,913 $ 8,993 $ 7,222 $ 12,844 Series 2000 Bonds $ 3,011 $ 3,012 $ 0 $ 0 $ 0 $ — $ — $ — $ — $ — Series 2013 Bonds — — 3,288 2,805 2,808 2,803 2,801 2,802 2,801 — Less
Minimum PFC Contribution(4) (1,100) (1,100) (1,600) (1,600) (1,600) (1,600) (1,600) (1,600) (1,600) (1,600) Bond proceeds (70) — — — — — — — — —
Additional PFC Contribution (321) (500) (231) 0 (200) — — — — — Net Series 2000/2013 Debt Service $ 1,520 $ 1,412 $ 1,457 $ 1,205 $ 1,008 $ 1,203 $ 1,201 $ 1,202 $ 1,201 $ (1,600) Series 2007 Bonds 1,298 1,332 1,369 1,399 1,437 1,472 1,509 1,544 1,581 — Series 2019 Bonds —
Annual Adjusted Debt Service $ 2,818 $ 2,744 $ 2,826 $ 2,604 $ 2,445 $ 2,675 $ 2,710 $ 2,746 $ 2,782 $ — Annual Adjusted Debt Service Coverage (5) (6)
1.63 2.04 2.49 2.97 3.44 3.27 3.29 3.27 2.60 Not
Applicable
Notes:
(1)State of California law requires the exclusion of Customer Facility Charge (CFC) Revenues from the calculation of Debt Service coverage in excess of annual Debt Service on the Series 2007 bonds
(2)Fiscal year 2021 Revenues include $4.5 million of CARES Act monies. The Indenture of Trust defines federal operation grants as Revenues. (3)For all fiscal years, reflects Operating Expenses in operating funds only and does not include costs expensed out of Airports capital funds. (4)Per the indenture, unencumbered CFC funds equal to 25% of Adjusted Debt Service may be designated by the City as Other Available Funds prior to the beginning of any fiscal year, and be transferred to the Revenue Fund at the beginning of such fiscal year. Since fiscal year 2015, the City's policy has been to annually designate available CFC funds equal to 25% of debt service associated with 2007 Bonds as Other Available Funds. (5)Fiscal year 2021 Debt Service associated with Series 2013 Bonds, Series 2007 Bonds and 2019 Bonds was prepaid in September 2020 with existing cash balances. (6)Under the Supplemental Indenture, the Minimum Passenger Facility Charge (PFC) Contribution is increased from $1.1 million to $1.6 million. (7)Fiscal year 2021 Adjusted Debt Service was prepaid with existing cash balances (and was not paid with fiscal year 2021 Net Revenues). (8)Had fiscal year 2021 Adjusted Debt Service not been prepaid, fiscal year 2020 Debt Service coverage would have been 2.77 times. 19 Water Enterprise
(in thousands) Fiscal Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenues
Charges for Services $ 69,269 $ 71,667 $ 90,096 $ 74,285 $ 77,959 $ 101,895 $ 107,377 $ 119,029 $ 120,252 $ 127,651 Less: Connection Fee Charges for Services (1,084) (1,331) (1,667) (1,496) (1,563) (1,917) (2,531) (2,138) (2,596) (1,835) Net Charges for Services (1) 68,185 70,336 88,429 72,789 76,396 99,978 104,846 116,891 117,656 125,816 Other Operating Revenues and Interest Income 1,533 720 329 573 1,147 17 — 4,974 6,906 (627) Total Revenues $ 69,718 $ 71,056 $ 88,758 $ 73,362 $ 77,543 $ 99,995 $ 104,846 $ 121,865 $ 124,562 $ 125,189 Expenses
Labor and Benefits $ 12,517 $ 12,679 $ 13,525 $ 11,378 $ 12,436 $ 12,401 $ 12,176 $ 14,581 $ 13,075 $ 15,428 Pumping Power 8,986 9,113 9,292 8,501 8,150 9,064 9,549 8,358 9,419 10,252 Source of Supply 7,748 6,318 1,780 5,613 6,630 4,188 9,751 6,535 9,027 6,531 All Other Operating and Maintenance (2) 18,386 16,821 18,151 17,473 17,166 21,547 17,692 35,143 26,148 24,728 Total Operating Expenses (3) $ 47,637 $ 44,931 $ 42,748 $ 42,965 $ 44,382 $ 47,200 $ 49,168 $ 64,617 $ 57,669 $ 56,939 Net Current Revenues $ 22,081 $ 26,125 $ 46,010 $ 30,397 $ 33,161 $ 52,795 $ 55,678 $ 57,248 $ 66,893 $ 68,250 2003A Senior Bond Debt Service (4)
$ 1,374 $ 1,376 $ 1,378 $ 1,374 $ 1,381 $ 1,380 $ 1,376 $ 1,379 $ 1,379 $ 0 State Loans Debt Service 265 259 120 120 120 — — — — — Total Senior Debt $ 1,639 $ 1,635 $ 1,498 $ 1,494 $ 1,501 $ 1,380 $ 1,376 $ 1,379 $ 1,379 $ — Senior Coverage Ratio 13.47 15.98 30.71 20.35 22.09 38.26 40.46 41.51 48.51 Not Applicable Net Revenue Available for Parity Debt
Service $ 20,442 $ 24,490 $ 44,512 $ 28,903 $ 31,660 $ 51,415 $ 54,302 $ 55,869 $ 65,514 $ 68,250 2010 Series A Bond Debt Service (5)
$ 12,515 $ 12,507 $12,509 $12,509 $12,531 $12,508 $12,509 $12,504 $12,510 $7,020 State Loans Debt Service $ 75 $ 266 $ 338 $ 2,770 $ 2,786 $ 3,533 $ 6,021 $ 10,937 $ 18,562 $ 16,190 Total Parity Debt Service $ 12,590 $ 12,773 $ 12,847 $15,279 $15,317 $16,041 $18,530 $23,441 $31,072 $ 23,210 Parity Coverage Ratio 1.62 1.92 3.46 1.89 2.07 3.21 2.93 2.38 2.11 2.94 Notes:
(1)1993 Indenture defines "Current Revenues" as all revenue from the operation of the Water System except for connection fees and charges. (2)All Other Operating and Maintenance includes Fleet Depreciation Charge (vehicle replacement fees paid to Fleet Department). (3)1993 Indenture defines "Maintenance and Operation Costs" as all expenses incurred for maintaining and operating the Water System except for Debt Service, Depreciation, and Amortization.
(4)2003 Water Bonds were the only remaining Senior Bond Debt Service after fiscal year 2016, and were paid off in fiscal year 2020. (5)Paid off Remaining 2010 Series A-1 Bonds in fiscal year 2021 with surplus cash. 20 Wastewater Enterprise
(in thousands) Fiscal Year
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Charges for Services(1)
$ 76,726 $ 76,324 $ 76,201 $ 81,955 $ 78,186 $ 83,635 $ 81,651 $ 81,085 $ 77,249 $ 77,940 Interest Income 3,797 485 1,546 1,787 2,779 492 2,046 5,548 4,702 (720) Less: Wastewater Facility Connection Fee (1,133) (1,853) (1,981) (1,709) (1,844) (1,968) (1,996) (3,290) (2,600) (3,426) Total Senior Lien Revenues $ 79,390 $ 74,956 $ 75,766 $ 82,033 $ 79,121 $ 82,159 $ 81,701 $ 83,343 $ 79,351 $ 73,794 Operating Expenses(2) 36,858 36,431 36,339 37,391 35,935 38,058 37,237 45,835 43,522 $ 44,630 Net Income Before Debt Service $ 42,532 $ 38,525 $ 39,427 $ 44,642 $ 43,186 $ 44,101 $ 44,464 $ 37,508 $ 35,829 $ 29,164 Senior Lien Debt Service(3) $ 10,737 $ 10,724 $ 10,714 $ 10,695 $ 10,723 $ 10,712 $ 10,701 $ 10,684 $ 373 $ 6,234 Coverage Ratio(4) 3.96 3.59 3.68 4.17 4.03 4.12 4.16 3.51 95.96 4.68 100% Coverage-Subordinate Lien: Net Current
Revenue after Senior Lien Debt (before
Connection Fees) $ 31,795 $ 27,801 $ 28,713 $ 33,947 $ 32,463 $ 33,389 $ 33,763 $ 26,824 $ 35,456 $ 22,930 Available from Senior Lien Revenues $ 31,795 $ 27,801 $ 28,713 $ 33,947 $ 32,463 $ 33,389 $ 33,763 $ 26,824 $ 35,456 $ 22,930 Subordinate Lien Debt Service(5)
$ 7,949 $ 7,949 $ 7,949 $ 7,949 $ 7,949 $ 7,949 $ 9,229 $ 5,928 $ 4,853 $ 1,286 Coverage Ratio 4.00 3.50 3.61 4.27 4.08 4.20 3.66 4.52 7.31 17.83 120% & 125% Coverage Subordinate Lien: Net
Current Revenue (Excluding Connection
Fees) $ 31,795 $ 27,801 $ 28,713 $ 33,947 $ 32,463 $ 33,389 $ 33,763 $ 26,824 $ 35,456 $ 22,930 Wastewater Facility Connection Fee 1,133 1,853 1,981 1,709 1,844 1,968 1,996 3,290 2,600 $ 3,426 Transfers From/To Rate Stabilization Fund — — — — — — — — — $ — Net Current Revenue (Including Connection
Fees) $ 32,928 $ 29,654 $ 30,694 $ 35,656 $ 34,307 $ 35,357 $ 35,759 $ 30,114 $ 38,056 $ 26,356 Portion Pledged to Senior Lien Coverage(6)
Available From Senior Lien Revenues $ 32,928 $ 29,654 $ 30,694 $ 35,656 $ 34,307 $ 35,357 $ 35,759 $ 30,114 $ 38,056 $ 26,356 Subordinate Lien Debt Service(5) $ 7,949 $ 7,949 $ 7,949 $ 7,949 $ 7,949 $ 7,949 $ 9,229 $ 5,928 $ 4,853 $ 1,286 Coverage Ratio 4.14 3.73 3.86 4.49 4.32 4.45 3.87 5.08 7.84 20.49 Net Income After Debt Service(7) $ 24,979 $ 21,705 $ 22,745 $ 27,707 $ 26,358 $ 27,408 $ 26,530 $ 24,186 $ 33,203 $ 25,070 Notes:
(1)Includes revenue paid by the City of Clovis for Operations and Maintenance pursuant to the 1977 Fresno-Clovis Sewerage System Joint Powers Agreement. (2)The 1993 Indenture specifically excludes from Operating Expenses Debt Service, Amortization and Depreciation. (3)1993 Sewer System Revenue Bonds, Series A.
(4)Coverage Ratio is calculated by dividing Net Income before Debt Service by Senior Lien Debt Service. (5)2008 Sewer System Revenue Refunding Bonds, Series A & Clean Water Loan for Tertiary Treatment Facility. The City redeemed $132.54 million of the 2008 Sewer System Revenue Refunding bonds on 09/01/2018, and redeemed the remaining 2008 Sewer System Revenue Refunding bonds on 09/01/2019. 21 (6)The 1991 Sewer System Revenue Bonds (1991 Series A) matured in August 2003; Repayment of the bonds were funded from revenues of the Sewer System. (7)Net Income after Debt Service and before cash financed capital expenses and any other expenses for lawful purposes. 22 Appendix - Ratings History
Lease Revenue Bonds
Year
Moody’s S&P Fitch
Rating Outlook Rating Outlook Rating Outlook
2021 A3 á Pos A- Stable A- Stable
2020 Baa1 Pos A Stable A- Stable
2019 Baa1 Pos A Stable A- Stable
2018 Baa1 Pos A Stable A- Stable
2017 Baa1 á Pos A á Stable A- Stable
2016 Baa2/Baa3 á Pos BB+ Stable A- á Stable
2015 Ba1/Ba2 á Stable BB+ Stable BBB- Stable
2014 Ba2/Ba3 â Pos BB+ Stable BBB- Stable
2013 Ba1/Ba2 Neg BB+ Stable BBB- Neg
Airport Revenue Bonds
â
Year
Moody’s S&P Fitch
Rating Outlook Rating Outlook Rating Outlook
2021 A3 á Pos A- â Stable BBB+ Stable
2020 Baa1 Stable A Neg BBB+ Stable
2019 Baa1 Stable A Stable BBB+ Stable
2018 Baa1 Pos A á Stable BBB+ á Stable
2017 Baa1 Pos BBB+ á Stable BBB Pos
2016 Baa1 Pos BBB Pos BBB Pos
2015 Baa1 Stable BBB Pos BBB Stable
2014 Baa1 Stable BBB Stable BBB Stable
2013 Baa1 Stable BBB Stable BBB Stable
Arrows indicate an increase (á) or decrease (â) from the prior rating.
CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2021 23 Water Revenue Bonds
Year
Moody’s S&P Fitch
Rating Outlook Rating Outlook Rating Outlook
2021 A3 Pos AA- Stable AA/A+ Stable
2020 A3 Pos AA- Stable AA/A+ Stable
2019 A3 Pos AA- Stable AA/A+ Stable
2018 A3 Pos AA- Stable AA/A+ Stable
2017 A3 Pos AA- Stable AA/A+ Stable
2016 A3 Pos AA- á Stable AA/A+ Stable
2015 A3 Pos A+/A Stable AA/A+ Stable
2014 A3 Stable A+/A Stable AA/A+ Stable
2013 A3 A+/A Stable AA/A+ Neg
Wastewater (Sewer) Revenue Bonds
Year
Moody's S&P Fitch
Rating Outlook Rating Outlook Rating Outlook
2021 A1 Pos AA+/AA Stable AA/AA- Stable
2020 A1 Pos AA+/AA Stable AA/AA- Stable
2019 A1 Pos AA+/AA Stable AA/AA- Stable
2018 A1 Pos AA+/AA Stable AA/AA- Stable
2017 A1 Pos AA+/AA Stable AA/AA- Stable
2016 A1 Pos AA+/AA Stable AA/AA- Stable
2015 A1 Pos AA+/AA Stable AA/AA- Neg
2014 A1 Stable AA+/AA á Stable AA/AA- Neg
2013 A1 Neg AA+/AA- Stable AA/AA- Neg
Arrows indicate an increase (á) or decrease (â) from the prior rating.
CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2021 24