Debt Obligations

Multiple types of long-term debt have been issued by the District's different systems for the design, acquisition, and construction of capital facilities and equipment. Throughout the year, new projects are nominated to the existing CIP based on current and future needs. Nominated projects generally fall into the following categories: expanding/new growth, aging infrastructure, new regulations, and others. Projects that ultimately end up being selected are taken to the District Executive Team to be approved for inclusion into the CIP. Projects that are accepted into the CIP are added to the schedule for future funding needs. Based on available funding and needs, staff determines whether a project can be completed using funds on hand or if a bond sale will be needed. If a bond sale is needed, staff coordinates with the District's financial advisor and bond counsel to facilitate a transaction.

North Texas Municipal Water District does not hold any bond elections.

Water Revenue Bonds are issued to provide funds for certain improvements to the water treatment and distribution system, to fund the Debt Service Reserve fund as required by Bond ordinance, and also to refund prior Water System debt issues. These bonds are reported in the Water System fund as the debt will be repaid from revenues of this enterprise fund operation. Bonds still outstanding may be called in whole or in part at the District's option on or after ten years from the date of issuance.

Wastewater Revenue Bonds are issued to provide funds for certain improvements to the wastewater collection and treatment system, to fund the Debt Service Reserve fund as required by Bond ordinance, and also to refund prior Wastewater debt issues. These bonds are reported in the Wastewater System funds as the debt will be repaid from revenues of this enterprise fund operation. Bonds still outstanding may be called in whole or in part at the District's option on or after ten years from the date of issuance.

Solid Waste Revenue Bonds are issued to provide funds for certain improvements to the solid waste collection, transportation, and storage system, to fund the Debt Service Reserve fund as required by Bond ordinance, and also to refund prior Solid Waste debt issues. These bonds are reported in the Solid Waste System fund as the debt will be repaid from revenues of this enterprise fund operation. Bonds still outstanding may be called in whole or in part at the District's option on or after ten years from the date of issuance.

House Bill 1378: Debt Obligation Reporting

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