TABLE OF CONTENTS
PAGE
Overview
Debt Management Program .......................................................................................................................... 1 Debt Issued During Fiscal Year 2024 ................................................................................................... 1 Debt Program Work Plan for Fiscal Year 2025 ................................................................................... 1 Debt Administration ................................................................................................................................. 2 Debt Management Projects ................................................................................................................... 2 Debt Management Policies ........................................................................................................................... 3 Citywide Debt Service .................................................................................................................................... 4 Rating Agency Overview/Actions ................................................................................................................. 6 Debt Financing Team ..................................................................................................................................... 7 Trustee Activity ................................................................................................................................................ 8 Investment Activity .......................................................................................................................................... 9 Debt Detail Report ............................................................................................................................. 10 Comparative Statistics
Municipal Financial Ratio Analysis: Fresno vs. California Top 10 by Population ................................. 14 Peer Analysis to Largest 10 Cities ............................................................................................................... 14 Debt Coverage
Airport Enterprise ............................................................................................................................................ 15 Water Enterprise ............................................................................................................................................. 16 Wastewater Enterprise ................................................................................................................................... 17 Appendix - Ratings History
Lease Revenue Bonds ................................................................................................................................... 18 Airport Revenue Bonds .................................................................................................................................. 18 Water Revenue Bonds ................................................................................................................................... 19 Wastewater (Sewer) Revenue Bonds ......................................................................................................... 19 CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2024 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 2024, the debt program work plan for fiscal year 2025, debt administration and debt management projects that have been completed, are currently underway, or are planned for fiscal year 2025.
1. Debt Issued During Fiscal Year 2024
Fiscal year 2024 debt issuance totaled $18.9 million, composed of the following:
• Equipment lease purchases of $14.5 million placed directly with Banc of America Public Capital Corp. for police and fire vehicles, and
• Equipment lease purchase of $4.4 million placed directly with Banc of America Public Capital Corp. for new Self-Contained Breathing Apparatus for the Fire Department.
2. Debt Program Work Plan for Fiscal Year 2025
New Bonds - Debt Management staff continues to look at existing debt to find opportunities to save interest expense. In August 2023, Staff began working with the Fire Department on issuing new bonds to build a new fire station. City Council approve the purchase of property for this station to replace an existing fire station. Estimated project cost is approximately $18 million. In March 2024, Staff began working with the Police Department on issuing bonds to build a new call center. Estimated project cost is approximately $16.9 million
New Loans - Debt Management staff remains available to assist departments with their financing needs during fiscal year 2025. In May 2024, the Wastewater Division of the Department of Public Utilities began negotiating a loan for the installation of energy efficient facilities. A loan in the amount of $23.4 million was executed in July 2024.
New Leases - The City has budgeted for lease payments in fiscal year 2025 totaling $17.6 million to fund primarily public safety vehicles. 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 August CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2024 1 2023, Staff began working with the Police Department on the financing of a new helicopter to replace one of the two existing helicopters. Financing was completed and placed into escrow in December 2024.
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:
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, 2024. During Fiscal Year 2024, the amount financed approached the $35 million capacity, and the City and BAPCC entered into an Amendment to the MELPA on 01/29/2024 to increase the capacity to $55 million. As of June 30, 2024 the City has borrowed $39.0 million of its $55 million capacity under the 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, 2024 2 No bonds were issued for projects in the City of Fresno in Fiscal Year 2024. So no TEFRA Hearings were conducted.
Airport Bonds - Staff worked with the Airport Department to issued $91.1 million in Airport Revenue Bonds on May 25, 2023 for the expansion of the terminal and construction of a new federal inspection station at Fresno Yosemite Airport. The federal inspection station will replace a temporary facility that has been used for 20 years. The expanded terminal will accommodate air traffic that has increased considerably since 2020. As of June 30, 2024, the project has drawn $24.1 million of the $70.0 million Project Fund.
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 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 ("GF") Appropriation shall be less than 10%.
The table on the next page is an update of the table in Section 6 of the Debt Policies.
CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2024 3 Key Debt Ratios Description/Trend City of Fresno
FY 2024 Debt
Ratios
Net Direct Debt to Assessed Property Value %
(Favorable Trend=Lower than 3%) 0.2%
% Of Principal Net Direct Debt Retired in Ten Years GF Backed (2023 - 2024) 72.5% (Favorable Trend = Greater than 35%) GF Paid (2023 - 2024) 76.2% Net Direct Debt Service as % of General Fund Appropriations (Favorable Trend = Less than 10%) 3.12%
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 2024, this percentage was 92.40% on GF Backed Principal and 91.74% on GF Paid Principal.
C. Citywide Debt Service
The graph below illustrates the size of the City’s debt portfolio and the dollar volume of debt issued in each of the last ten years. 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. In fiscal year 2023, the Airport Department issued $91.1 million to construct a new terminal and federal inspection station.
City Debt Portfolio and Debt Issuance History
Fiscal Year 2014-15 through Fiscal Year 2023-24
Outstanding Debt (in
Millions)
New Issuances
($ Millions)
General Governmental Business-Type RDA/Successor New Issuances 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
$0
$200
$400
$600
$800
$1,000
$1,200
$0
$50
$100
$150
$200
$250
$300
CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2024 4 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 2024 is calculated as follows:
Assessed valuation as of 06/30/2024 $ 49.3 billion
Debt limit X 20%
City’s Debt Limit $ 9.9 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, 2024, 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 below shows only General Fund debt service:
Period Ending
General Fund Debt Service (in Millions)
LRBs 2002 POBs Leases Loans
2025202620272028202920302031203220332034203520362037203820392040204120422043204420452046 $0
$5
$10
$15
$20
$25
$30
$35
$40
$45
Fiscal year 2024 General Fund Debt Service was reduced through normal debt service payments.
CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2024 5 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
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
$0
$15
$30
$45
$60
$75
$90
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.
CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2024 6 YEAR MOODY’S S&P FITCH
Rating Outlook Rating Outlook Rating Outlook
2024 A1 Stable AA- Stable AA ↑ Stable
2023 A1 ↑ Stable AA- ↑ Stable A+ ↑ Positive
2022 A2 Stable A+ Stable A Positive
2021 A2 ↑ Stable A+ Stable A Positive
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+ ↑ Stable A Stable
2016 A3 Stable BBB- Stable A ↑ Stable
2015 A3 ↑ Stable BBB- Stable BBB+ Negative
Arrows indicate an increase ( á) or decrease (â) from the prior rating.
Fiscal year 2023 was the first time in the City's history where all three major rating agencies upgraded its rating. S&P upgraded the rating to AA- from A+ on November 14, 2023. Moody's followed on December 19, 2023 with their upgrade to A1 from A2, with Fitch following on May 11, 2023 with their upgrade to A+ from A. Fitch reviewed the City's credit again in May 2024 and upgraded its Issuer Default Rating ("IDR") again to AA from A+
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, 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 CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2024 7 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.
Below is a list of each trustee and the debt instruments for which they provide services:
Trustee Debt Instrument
Fees Paid to
Trustee in
FY2024
Interest/ Dividends
Earned in FY2024
Bank of New
York Mellon
Corporate Trust
Fresno JPFA 1998 Lease Revenue Bonds $32,765 $4,704,452 1999 Community Facilities District #4
2001 Community Facilities District #5
2002 Pension Obligation Bonds
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 $5,400 $141,278
State Water Resources Control Board Loans
JPFA = Fresno Joint Powers Financing Authority; TARB = Tax Allocation Revenue Bonds CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2024 8 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 2024, $4.8 million 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, 2024 9 Debt Detail Report
(sorted by Maturity Date)
The following is a description of Long-Term Debt, Excluding Capital Lease Obligation, which had activity in 2024 (in thousands):
Governmental
Revenue and Other Bonds
Taxable Pension
Obligation Bonds 2002
$205,335
taxable
Refund 2000
Taxable Pension
Obligation Bonds
6.55% 2/21/2002 6/1/2029 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. During 2024
$14,072 was used from General Fund and $2,119 was
used form Enterprise Funds and Internal Service Funds to make the 2024 debt service payment of $16,191
$11,790 to
$15,195
$ 67,190 $ 0 $ 67,190 $ 80,950 $ 16,191
Fresno Joint Powers
Financing Authority:
Lease Financing
Refunding 2017 B, Bee
Bldg & Granite Park
B = $21,980
taxable
Fresno Bee Building
and Granite Park
3.48% to
4.16%
5/10/2017 4/1/2031 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. Lease revenue of $2,367 was equal to debt service in 2024.
$1,805 to
$2,270
14,155 0 14,155 16,544 2,367
Fresno Joint Powers
Financing Authority:
Lease Revenue
Refunding Bonds 2017
A, Convention Center
Parking Garage
A = $12,435
tax-exempt
Refinance
Convention Center
Parking Garage
5.000% 5/10/2017 4/1/2035 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. Lease revenue of $1,142 was equal to debt service in 2024.
$40 to $1,785 9,800 (920) 8,880 12,630 1,142
Fresno Joint Powers
Financing Authority:
Lease Revenue Bonds
2004 C, Convention
Center Parking Garage
C = $28,870
taxable
Convention Center
Parking Garage
5.900% 4/28/2004 10/1/2034 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. Lease revenue of $1,532 was equal to debt service in 2024.
$1,110 to
$1,400
7,654 (4) 7,650 9,067 1,532
Fresno Joint Powers
Financing Authority:
Lease Revenue
Refunding Bonds (Parks
Projects) 2017 A, Parks
Impact Fee Projects
A = $22,965
tax-exempt
Refinance
Improvements to
Various Park
Facilities
5.000% 5/10/2017 4/1/2038 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. Lease revenue of $1,819 was equal to debt service in 2024.
$930 to
$1,755
19,903 (1,663) 18,240 25,490 1,819
Fresno Joint Powers
Financing Authority:
Lease Revenue
Refunding Bonds 2017
A, Police and Fire/Public
Safety
A = $32,065
tax-exempt
Refinance Public
Safety Capital
Improvement
Projects (Police &
Fire)
5.000% 5/10/2017 4/1/2039 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. Lease revenue of $2,382 was equal to debt service in 2024.
$1,175 to
$2,300
27,544 (2,184) 25,360 35,809 2,382
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%
11/3/2020 4/1/2046 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. Lease revenue of $1,122 was equal to debt service in 2024.
$435 to
$1,075
18,115 (2,155) 15,960 24,630 1,122
Revenue and Other Bonds Total $ 164,361 $ (6,926) $ 157,435 $ 205,120 $ 26,555 Governmental Total $ 164,361 $ (6,926) $ 157,435 $ 205,120 $ 26,555 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
2024 Debt
Service
Payment
10 Business-Type
Revenue and Other Bonds
Water System Revenue
Bonds (Taxable Build
America Bonds) 2010
A-2, Water
A-2 = $91,340
taxable
Improvements to
the Water System
6.50% to
6.75%
2/3/2010 6/1/2040 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. Principal payable annually, interest
semiannually. During Fiscal Year 2024, a federal Build
America Bonds subsidy of $2,038 was received.
$4,090 to
$7,715
$ 90,506 $ 834 $ 91,340 $ 149,018 $ 6,097
Fresno Joint Powers
Financing Authority:
Lease Revenue
Refunding Bonds 2017
A, Convention Center
A = $4,260
tax-exempt
Refinance
Convention Center
Improvement
Projects (Phase I)
5.00% 5/10/2017 4/1/2027 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. During 2024 the City chose to make these
lease payments from the General Fund in the amount of
$566, which was equal to debt service in 2024. 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.
$490 to $540 1,625 (80) 1,545 1,702 566
Fresno Joint Powers
Financing Authority:
Lease Revenue
Refunding Bonds 2017
A, Exhibit Hall Expansion
Project Refunding
A = $11,665
tax-exempt
Refinance Exhibit
Hall Expansion
Project
5.00% 5/10/2017 4/1/2029 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. Lease revenue of $1,406, which was equal to debt service in 2024. 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.
$1,095 to
$1,330
6,479 (419) 6,060 6,998 1,406
Fresno Joint Powers
Financing Authority:
Lease Revenue Bonds
1998, Exhibit Hall
Expansion Project
$32,610 tax-
exempt
Construction of an
Exhibit Hall
N/A 9/1/1998 9/1/2028 Current Interest Serial Bonds ($25,395) and Capital Appreciation Serial Bonds ($7,215). 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 2024, the City chose to make these lease payments from
the General Fund in the amount of $750, 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 to $199 3,285 (2,383) 902 3,750 750
Fresno Joint Powers
Financing Authority:
Lease Revenue
Refunding Bonds 2017
A, Stadium Project
A = $13,510
tax-exempt
Refinance
MultiPurpose
Stadium Project
5.00% 5/10/2017 4/1/2031 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. During 2024, the City chose to make these lease payments from the General Fund in the amount of
$1,366, 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.
$970 to
$1,300
8,538 (643) 7,895 9,551 1,366
Fresno Joint Powers
Financing Authority:
Lease Revenue Bonds
2001 A & B, Stadium
Project
A = $23,615
tax-exempt; B
= $22,235
taxable
Acquire and
construct a
MultiPurpose
Outdoor Stadium
7.03% 6/12/2001 6/1/2031 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 2024, the City chose to make these lease payments from the General Fund in the amount of
$1,817, 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.
$130 to
$1,700
9,792 (7) 9,785 12,722 1,817
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
2024 Debt
Service
Payment
11 Fresno Joint Powers
Financing Authority:
Lease Revenue
Refunding Bonds
(Riverside Golf Course)
2017 A, Riverside Golf
Course
A = $1,615
tax-exempt
Refinance
Improvements to
Riverside Golf
Course
5.00% 5/10/2017 4/1/2038 Repayment payable solely by revenues pledged under Master Facilities Sublease agreement, primarily Base
Rental Payments. Principal due annually, interest due
semiannually. During 2024, the City chose to make these lease payments from the General Fund in the amount of
$130, 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.
$70 to $125 $ 1,392 $ (117) $ 1,275 $ 1,781 $ 130
Airport Revenue Bonds
2007, Consolidated
Rental Car Facility
$22,000
taxable
Construction of a
Consolidated Rental
Car Facility and
related
improvements
5.83% 6/14/2007 7/1/2037 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 2024 $1,688 of CFC revenues was used to fully cover the debt service payment.
$645 to
$2,265
18,880 0 18,880 28,229 1,688
Airport Revenue Bonds
2019, Airport Parking
$35,000
taxable
Construction of a
Parking Garage
3.45% 5/3/2019 7/1/2048 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.
$856 to
$1,802
31,830 0 31,830 47,310 1,942
Airport Revenue Bonds
2023, Airport Concourse
& Federal Inspection
Station
A = $94,485
AMT B =
$5,690 Non-
AMT
Construction of
Concourse and
Federal Inspection
Station
5.00% 5/25/2023 7/1/2053 Repayment of bonds solely from operation of the City Airport System. Bond Indenture requires a minimum
$1,600 of PFC Contribution toward annual debt service
from Passenger Facility Charges (PFC).
$1,620 to
$4,830
96,649 (5,564) 91,085 164,964 2,685
Revenue and Other Bonds Total $ 268,976 $ (8,379) $ 260,597 $ 426,025 $ 18,447 Notes Payable
Water: Safe-Drinking
Water Program
$51,405
Loaned
Contract between
the State Water
Resources Control
Board and the City
for installation of
water meters
throughout the City
of Fresno
—% 4/10/2012 7/16/2034 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. $2,570 to
$2,570
$ 25,703 $ 0 $ 25,703 $ 25,703 $ 2,570
Water: Safe Drinking
Water Program
$1,947
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)
2.29% 7/1/2009 7/1/2031 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 $61.
$61 to $119 837 0 837 916 122
Water: Safe Drinking
Water Program
$1,245
Loaned
Contract between
the State Water
Resources Control
Board and the City
for improvements
on the Enterprise
and Jefferson
Canals
2.29% 7/1/2009 1/1/2032 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 $39.
$39 to $76 $ 535 $ 0 $ 535 $ 585 $ 78
Water: Drinking Water
State Revolving Fund
Project 1010007-029C
$21,379
Loaned
Contract between
the State Water
Resources Control
Board and the City
for construction of
the Friant-Kern
Canal Raw Water
Pipeline
1.60% 4/5/2016 7/1/2048 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 $451.
$607 to $890 17,900 0 17,900 22,642 901
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
2024 Debt
Service
Payment
12 Water: Drinking Water
State Revolving Fund
Project 1010007-028C
$177,894
Loaned
Contract between
the State Water
Resources Control
Board and the City
for construction of a
Southeast Surface
Water Treatment
Facility
1.66% 7/15/2015 1/1/2049 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 $3,722. $3 million of the loan was forgiven by the State Water
Resources Control Board.
$3,691 to
$7,292
$ 149,501 $ 0 $ 149,501 $ 181,737 $ 7,444
Water: Drinking Water
State Revolving Fund
Project 1010007-030C
$67,437
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
1.60% 8/23/2016 1/1/2050 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 $1,420.
$1,409 to
$2,784
59,269 0 59,269 59,887 2,840
Water: Drinking Water
State Revolving Fund
Project 1010007-031C
$57,615
Loaned
Contract between
the State Water
Resources Control
Board and the City
for construction of a
Kings River Pipeline
1.60% 4/5/2016 7/1/2048 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 $1,217.
$1,641 to
$2,405
48,352 0 48,352 55,195 2,434
Water: Drinking Water
State Revolving Fund
Project 1010007-032C
$13,652
Loaned
Contract between
the State Water
Resources Control
Board and the City
for construction of a
Northeast Surface
Water Treatment
Facility
1.80% 11/26/2016 1/1/2051 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 $304.
$369 to $635 12,770 0 12,770 13,239 812
Sewer: Clean Water
State Revolving Fund
Project
$33,213
Loaned
Contract between
the State Water
Resources Control
Board and the City
for construction of a
tertiary treatment
facility
1.00% 10/17/2015 7/12/2046 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 in parity with State loans for Sewer.
Principal and interest due in annual installments of $1,286. $1,023 to
$1,282
25,297 0 25,297 28,308 1,286
Sewer: Clean Water
State Revolving Fund
Project No. 8061-110
$54,484
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
1.00% 8/19/2015 5/30/2047 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 in parity with State loans for Sewer.
Principal and interest due in semiannual installments of $1,056.
$1,582 to
$2,090
51,333 0 51,333 59,109 2,111
Notes Payable Total $ 391,496 $ 0 $ 391,496 $ 447,320 $ 20,599 Business-Type Total $ 660,472 $ (8,379) $ 652,093 $ 873,345 $ 39,046 Fiduciary
Notes Payable
RDA: Roeding Business
Park
$2,118
Loaned
Loaned from the
California
Infrastructure and
Economic
Development Bank
to be used to
complete the
Roeding Business
Park
3.53% 3/18/2004 8/1/2033 Principal and interest due in annual installments. Secured by Tax Increment revenue received into the Roeding
Business Park Project area.
$80 to $114 $ 979 $ 0 $ 979 $ 1,161 $ 116
Notes Payable Total $ 979 $ 0 $ 979 $ 1,161 $ 116
Fiduciary Total $ 979 $ 0 $ 979 $ 1,161 $ 116
Grand Total $ 825,812 $ (15,305) $ 810,507 $ 1,079,626 $ 65,717 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
2024 Debt
Service
Payment
13 Comparative Statistics
Data in the tables below are the most current Annual Comprehensive Financial Reports available at the time of publication. Fiscal year 2024 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 A1 - Including Fresno
General Fund Net Position as % of Revenues 51.74% 34.93% Direct Net Debt as % of Assessed Value 0.79% 0.69%
Total Assessed Value (in thousands) $255,895,100 $109,940,213 Assessed Value Per Capita $215,386 $123,928
Population Estimates 1,188,079 443,566
Per Capita Income (Estimated) $87,055 $59,053
All California Top 10 in Population cities except for the Cities of Anaheim and Fresno are in the Aa range.
Peer Analysis to Largest 10 Cities
Metric Median City of Fresno Ranking
General Fund Net Position % of Revenues 35.6% 28.7% 8th Unassigned General Fund Net Position % of Revenues 11.8% 12.2% 3rd Direct Net Debt (in thousands) $1,517 $97 10th
Direct Net Debt Per Capita $1,578 $178 8th
Debt Burden 74.1% 21.9% 10th
Per Capita Income $75,323 $59,053 8th
Assessed Value Per Capita $201,058 $90,114 8th
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, 2023 14 Debt Coverage
Airport Enterprise
(in thousands)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Operating Revenues (1) $ 21,802 $ 22,976 $ 24,500 $ 25,891 $ 27,308 $ 26,789 $ 33,470 $ 41,093 $ 44,994 $ 50,893 Less Operating Expenses (2) 14,428 14,934 16,117 17,355 18,701 19,962 20,626 21,290 24,165 25,691 Other Available Funds (3) 350 359 368 377 386 395 — 416 412 422 Net Revenues $ 7,724 $ 8,401 $ 8,751 $ 8,913 $ 8,993 $ 7,222 $ 12,844 $ 20,219 $ 21,241 $ 25,624 Series 2000 Bonds $ 0 $ 0 $ 0 $ 0 $ — $ — $ — $ — $ — $ — Series 2013 Bonds 2,805 2,808 2,803 2,801 2,802 2,801 0 2,804 2,700 2,685 Less
Minimum PFC Contribution(4) (1,600) (1,600) (1,600) (1,600) (1,600) (1,600) (1,600) (1,600) (1,600) (1,600) Bond proceeds — — — — — — — — — —
Additional PFC Contribution 0 (200) 0 0 — — — — — — Net Series 2000/2013 Debt Service $ 1,205 $ 1,008 $ 1,203 $ 1,201 $ 1,202 $ 1,201 $ -1,600 $ 1,204 $ 1,100 $ 1,085 Series 2007 Bonds 1,399 1,437 1,472 1,509 1,544 1,581 0 1,664 1,649 1,688 Series 2019 Bonds 1,945 1,942
Annual Adjusted Debt Service $ 2,604 $ 2,445 $ 2,675 $ 2,710 $ 2,746 $ 2,782 $ -1,600 $ 2,868 $ — $ 4,715 Annual Adjusted Debt Service Coverage (5) (6)
2.97 3.44 3.27 3.29 3.27 2.60 -8.03 7.05 Not
Applicable 5.43
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 2023 Revenues include $5.2 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 2022 Debt Service associated with Series 2013 Bonds, Series 2007 Bonds and 2019 Bonds. (6)Under the Supplemental Indenture, the Minimum Passenger Facility Charge (PFC) Contribution is increased from $1.1 million to $1.6 million. 15 Water Enterprise
(in thousands) Fiscal Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenues
Charges for Services $ 74,285 $ 77,959 $ 101,895 $ 107,377 $ 119,029 $ 120,252 $ 127,651 $ 136,479 $ 122,837 $ 124,655 Less: Connection Fee Charges for Services (1,496) (1,563) (1,917) (2,531) (2,138) (2,596) (1,835) (1,643) (1,206) (1,180) Net Charges for Services (1) 72,789 76,396 99,978 104,846 116,891 117,656 125,816 134,836 121,631 123,476 Other Operating Revenues and Interest Income 573 1,147 17 — 4,974 6,906 (627) (9,267) (343) 13,002 Total Revenues $ 73,362 $ 77,543 $ 99,995 $ 104,846 $ 121,865 $ 124,562 $ 125,189 $ 125,569 $ 121,288 $ 136,478 Expenses
Labor and Benefits $ 11,378 $ 12,436 $ 12,401 $ 12,176 $ 14,581 $ 13,075 $ 15,428 $ 15,232 $ 16,957 $ 16,019 Pumping Power 8,501 8,150 9,064 9,549 8,358 9,419 10,252 11,516 11,508 13,885 Source of Supply 5,613 6,630 4,188 9,751 6,535 9,027 6,531 8,739 9,177 8,987 All Other Operating and Maintenance (2) 17,473 17,166 21,547 17,692 35,143 26,148 24,728 30,600 50,862 53,080 Total Operating Expenses (3) $ 42,965 $ 44,382 $ 47,200 $ 49,168 $ 64,617 $ 57,669 $ 56,939 $ 66,087 $ 88,504 $ 91,971 Net Current Revenues $ 30,397 $ 33,161 $ 52,795 $ 55,678 $ 57,248 $ 66,893 $ 68,250 $ 59,482 $ 32,784 $ 44,507 2003A Senior Bond Debt Service (4)
$ 1,374 $ 1,381 $ 1,380 $ 1,376 $ 1,379 $ 1,379 $ 0 $ 0 $ 0 $ 0 State Loans Debt Service 120 120 — — — — — — — — Total Senior Debt $ 1,494 $ 1,501 $ 1,380 $ 1,376 $ 1,379 $ 1,379 $ — $ — $ — $ — Senior Coverage Ratio 20.35 22.09 38.26 40.46 41.51 48.51 NotApplicable Not Applicable Not Applicable Not Applicable Net Revenue Available for Parity Debt
Service $ 28,903 $ 31,660 $ 51,415 $ 54,302 $ 55,869 $ 65,514 $ 68,250 $ 59,482 $ 32,784 $ 44,507 2010 Series A Bond Debt Service (5)
$ 12,509 $ 12,531 $ 12,508 $ 12,509 $ 12,504 $ 12,510 $ 7,020 $ 4,085 $ 4,084 $ 4,059 State Loans Debt Service $ 2,770 $ 2,786 $ 3,533 $ 6,021 $ 10,937 $ 18,562 $ 16,190 $ 16,489 $ 16,489 $ 17,201 Total Parity Debt Service $ 15,279 $ 15,317 $ 16,041 $ 18,530 $ 23,441 $ 31,072 $ 23,210 $ 20,574 $ 20,573 $ 21,260 Parity Coverage Ratio 1.89 2.07 3.21 2.93 2.38 2.11 2.94 2.89 1.59 2.09 Notes:
(1)1993 Indenture defines "Current Revenues" as all revenue from the operation of the Water System except for connection fees and charges. Beginning in fiscal year 2022, the BAB Subsidy is no longer included in Net Revenues and is now netted against interest expense on the 2010 Series A-2 Bonds. (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. Beginning in fiscal year 2022, the BAB Subsidy is netted against interest expense. 16 Wastewater Enterprise
(in thousands) Fiscal Year
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Charges for Services(1)
$ 81,955 $ 78,186 $ 83,635 $ 81,651 $ 81,085 $ 77,249 $ 77,940 $ 87,795 $ 84,086 $ 89,248 Interest Income 1,787 2,779 492 2,046 5,548 4,702 (720) (7,943) (1,548) 12,020 Less: Wastewater Facility Connection Fee (1,709) (1,844) (1,968) (1,996) (3,290) (2,600) (3,426) (3,393) (2,028) (2,176) Total Senior Lien Revenues $ 82,033 $ 79,121 $ 82,159 $ 81,701 $ 83,343 $ 79,351 $ 73,794 $ 76,459 $ 80,510 $ 99,092 Operating Expenses(2) 37,391 35,935 38,058 37,237 45,835 43,522 44,630 51,088 32,873 $ 74,976 Net Income Before Debt Service $ 44,642 $ 43,186 $ 44,101 $ 44,464 $ 37,508 $ 35,829 $ 29,164 $ 25,371 $ 47,637 $ 24,116 Senior Lien Debt Service(3) $ 10,695 $ 10,723 $ 10,712 $ 10,701 $ 10,684 $ 373 $ 6,234 $ 40 $ 905 $ — Coverage Ratio(4) 4.17 4.03 4.12 4.16 3.51 95.96 4.68 637.08 52.64 .00 100% Coverage-Subordinate Lien: Net Current
Revenue after Senior Lien Debt (before
Connection Fees) $ 33,947 $ 32,463 $ 33,389 $ 33,763 $ 26,824 $ 35,456 $ 22,930 $ 25,331 $ 46,732 $ 24,116 Available from Senior Lien Revenues $ 33,947 $ 32,463 $ 33,389 $ 33,763 $ 26,824 $ 35,456 $ 22,930 $ 25,331 $ 46,732 $ 24,116 Subordinate Lien Debt Service(5)
$ 7,949 $ 7,949 $ 7,949 $ 9,229 $ 5,928 $ 4,853 $ 1,286 $ 1,286 $ 3,397 $ 3,397 Coverage Ratio 4.27 4.08 4.20 3.66 4.52 7.31 17.83 19.69 13.76 7.10 120% & 125% Coverage Subordinate Lien: Net
Current Revenue (Excluding Connection
Fees) $ 33,947 $ 32,463 $ 33,389 $ 33,763 $ 26,824 $ 35,456 $ 22,930 $ 25,331 $ 46,732 $ 24,116 Wastewater Facility Connection Fee 1,709 1,844 1,968 1,996 3,290 2,600 3,426 3,393 2,028 $ 2,176 Transfers From/To Rate Stabilization Fund — — — — — — — — — $ — Net Current Revenue (Including Connection
Fees) $ 35,656 $ 34,307 $ 35,357 $ 35,759 $ 30,114 $ 38,056 $ 26,356 $ 28,724 $ 48,760 $ 26,292 Portion Pledged to Senior Lien Coverage
Available From Senior Lien Revenues $ 35,656 $ 34,307 $ 35,357 $ 35,759 $ 30,114 $ 38,056 $ 26,356 $ 28,724 $ 48,760 $ 26,292 Subordinate Lien Debt Service(5) $ 7,949 $ 7,949 $ 7,949 $ 9,229 $ 5,928 $ 4,853 $ 1,286 $ 1,286 $ 3,397 $ 3,397 Coverage Ratio 4.49 4.32 4.45 3.87 5.08 7.84 20.49 22.33 14.35 7.74 Net Income After Debt Service(6) $ 27,707 $ 26,358 $ 27,408 $ 26,530 $ 24,186 $ 33,203 $ 25,070 $ 27,438 $ 45,363 $ 22,895 Notes:
(1)Includes revenue paid by the City of Clovis for Operations and Maintenance pursuant to the 1977 Fresno-Clovis Sewer System Joint Powers Agreement through Fiscal Year 2023. (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. (6)Net Income after Debt Service and before cash financed capital expenses and any other expenses for lawful purposes. 17 Appendix - Ratings History
Lease Revenue Bonds
Year
Moody’s S&P Fitch
Rating Outlook Rating Outlook Rating Outlook
2024 A2 Stable A+ Stable AA ↑ Positive
2023 A2 ↑ Stable A+ ↑ Stable A ↑ Positive
2022 A3 Stable A- Stable A- Positive
2021 A3 ↑ Stable A- Stable A- Positive
2020 Baa1 Positive A Stable A- Stable
2019 Baa1 Positive A Stable A- Stable
2018 Baa1 Positive A Stable A- Stable
2017 Baa1 ↑ Positive A ↑ Stable A- Stable
2016 Baa2/Baa3 ↑ Positive BB+ Stable A- ↑ Stable
2015 Ba1/Ba2 ↑ Stable BB+ Stable BBB- Stable
Airport Revenue Bonds
Year
Moody’s S&P Fitch KBRA
Rating Outlook Rating Outlook Rating Outlook Rating Outlook 2024 A3 ↑ Stable A Stable BBB+ Stable A+ Stable
2023 Baa1 Stable A ↓ Stable BBB+ Stable A+ Stable
2022 Baa1 Stable AA Stable BBB+ Stable
2021 Baa1 Stable AA ↑ Stable BBB+ Stable
2020 Baa1 Stable A Negative BBB+ Stable
2019 Baa1 Stable A Stable BBB+ Stable
2018 Baa1 Positive A ↑ Stable BBB+ ↑ Stable
2017 Baa1 Positive BBB+ ↑ Stable BBB Positive
2016 Baa1 Positive BBB Positive BBB Positive
2015 Baa1 Stable BBB Positive BBB Stable
Arrows indicate an increase (á) or decrease (â) from the prior rating.
Note: Ratings for S&P in 2021 and 2022 reflect insured ratings. The underlying rating has been stable at "A". With the issuance of the 2023 Airport Revenue Bonds, the City solicited a rating for the first time from Kroll Bond Rating Agency ("KBRA").
CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2024 18 Water Revenue Bonds
Year
Moody’s S&P Fitch
Rating Outlook Rating Outlook Rating Outlook
2024 A3 Positive AA- Stable AA/A+ Stable
2023 A3 Positive AA- Stable AA/A+ Stable
2022 A3 Positive AA- Stable AA/A+ Stable
2021 A3 Positive AA- Stable AA/A+ Stable
2020 A3 Positive AA- Stable AA/A+ Stable
2019 A3 Positive AA- Stable AA/A+ Stable
2018 A3 Positive AA- Stable AA/A+ Stable
2017 A3 Positive AA- Stable AA/A+ Stable
2016 A3 Positive AA- ↑ Stable AA/A+ Stable
2015 A3 Positive A+/A Stable AA/A+ Stable
Wastewater (Sewer) Revenue Bonds
Year
Moody's S&P Fitch
Rating Outlook Rating Outlook Rating Outlook
2024 A1 Positive AA+/AA Stable AA/AA- Stable
2023 A1 Positive AA+/AA Stable AA/AA- Stable
2022 A1 Positive AA+/AA Stable AA/AA- Stable
2021 A1 Positive AA+/AA Stable AA/AA- Stable
2020 A1 Positive AA+/AA Stable AA/AA- Stable
2019 A1 Positive AA+/AA Stable AA/AA- Stable
2018 A1 Positive AA+/AA Stable AA/AA- Stable
2017 A1 Positive AA+/AA Stable AA/AA- Stable
2016 A1 Positive AA+/AA Stable AA/AA- Negative
2015 A1 Positive AA+/AA Stable AA/AA- Negative
Arrows indicate an increase (á) or decrease (â) from the prior rating.
CITY OF FRESNO | ANNUAL COMPREHENSIVE DEBT REPORT FISCAL YEAR ENDED JUNE 30, 2024 19