CITY OF RED OAK, TEXAS LEGAL DEBT MARGIN INFORMATION Table 12 SEPTEMBER 30, <strong>2021</strong> Net Assessed Value $ 1,272,908,523 Plus Exempt Property 494,002,097 Total Assessed Value $ 1,766,910,620 Debt Limit - (10%) of Total Assessed Value $ 176,691,062 Less amount of debt applicable to debt limits 39,214,000 Legal Debt Margin 137,477,062 The Debt Rate legal limit percentage 22% As a home rule city, the City of Red Oak is not limited by law in the amount of debt it may issue. Chapter VIII, Section 8.01 of the City of Red Oak Charter states in part: The Council shall have the power granted to municipalities by the Constitution and laws of the state of Texas to levy, assess and collect lawful taxes on property within the territory of the City, not to exceed the maximum limits set by the constitution and laws of the State of Texas. Texas Local Government code section 1507.152 -.154 states the governing body may pledge to the payment of bonds issued under this subchapter an ad valorem tax sufficient to pay when due the principal of and interest on the bonds. A municipality may not issue bonds under this subchapter in a principal amount that: Exceeds the amount of loss sustained or anticipated by the municipality and the cost of issuing the bonds; or would result in the outstanding aggregate principal amount of tax bond indebtedness of the municipality exceeding 10% of the Assessed valuation of taxable property in the municipality according to the most recent ad valorem tax roll of the municipality. 79
CITY OF RED OAK, TEXAS PLEDGE-REVENUE COVERAGE Table 13 LAST TEN FISCAL YEARS Fiscal (1) (2) (3) Year Less Net Average Ended Gross Operating Available Debt 9/30 Revenue Expense Revenue Service Coverage 2012 4,367,643 3,104,920 1,262,723 1,775,620 0.95 2013 4,747,708 3,491,798 1,255,910 1,389,497 1.05 2014 5,179,084 4,042,943 1,136,141 1,521,694 1.31 2015 5,577,700 3,945,042 1,632,658 1,542,945 1.54 2016 6,369,552 4,579,093 1,790,459 1,698,340 1.42 2017 7,129,965 4,631,965 2,498,000 1,484,467 1.97 2018 7,676,753 4,851,428 2,825,325 1,538,190 1.79 2019 8,009,066 5,633,340 2,375,726 1,581,608 1.27 2020 8,727,199 6,569,673 2,157,526 1,316,000 1.14 <strong>2021</strong> 9,477,411 6,701,841 2,775,570 1,390,000 1.51 Source: <strong>Annual</strong> <strong>Comprehensive</strong> <strong>Financial</strong> <strong>Report</strong> (1) Gross Revenue includes all Water and Sewer revenues. (2) Operating expense includes all Water and Sewer expense excluding depreciation. (3) Average annual debt service is the average principal and interest payments due over the remaining term of all water and sewer bonds. 80
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City of Red Oak, Texas Annual Compr
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Required Supplementary Information
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THE CITY The City of Red Oak (the
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at the intersection of State Highwa
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OTHER INFORMATION Independent Audit
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CITIZENS City Attorney Robert Hager
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Other Matters Required Supplementar
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Both of the government-wide financi
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Changes in Net Position Governmenta
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Governmental Activities Business-ty
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CITY OF RED OAK, TEXAS STATEMENT OF
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CITY OF RED OAK, TEXAS BALANCE SHEE
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CITY OF RED OAK, TEXAS STATEMENT OF
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CITY OF RED OAK, TEXAS STATEMENT OF
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IV. RECEIVABLES The City’s receiv
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Bond Reserve Fund For the Industria
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Annual debt service requirements fo
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